Advanced Search
MyIDEAS: Login to save this paper or follow this series

Making the Dutch Pension System Less Vulnerable to Financial Crises

Contents:

Author Info

  • Jens Høj
Registered author(s):

    Abstract

    The Dutch occupational pension system has been successful in securing high asset accumulation to fund generous pension promises. However, for the second time in this decade the pension system has been affected by a financial crisis and many pension funds’ assets fell below levels needed to meet regulatory requirements. Insufficient funding raises solvency issues, which could eventually lead to large fiscal costs in case of bail-outs. In response to the crisis, most funds were required by the regulator to draw up recovery plans to restore their funding over five years. This has raised concerns that the adjustment required by the regulator is unnecessarily sharp, with possibly adverse macroeconomic implications. On the other hand, OECD simulations indicate that under current policies, it is unlikely that funding rates will be secured that enable the funds over the long term to fulfil their promises of a replacement rate of up to 80% of average wages. This raises the challenge of implementing parametric changes that secure pension benefits without large detrimental effects on intergenerational equity and growth. Occupational pensions are transferable, which enhances labour market mobility. But it is often very difficult for workers to assess how one pension scheme compares to another, posing practical barriers to mobility that should be eased. This Working Paper relates to the 2010 OECD Economic Survey of the Netherlands (www.oecd.org/eco/surveys/ netherlands). Rendre le système de retraite néerlandais moins vulnérable aux crises financières Le système de retraite professionnel néerlandais a permis d'assurer une forte accumulation d'actifs destinés à financer de généreuses promesses de pension. Néanmoins, pour la seconde fois au cours de cette décennie, le système de retraite a subi le contrecoup d'une crise financière, et le niveau des actifs de nombreux organismes de retraite est tombé en deçà du seuil prévu par la réglementation. Cette capitalisation insuffisante soulève des problèmes de solvabilité, qui pourraient déboucher à terme sur d'amples coûts budgétaires en cas de renflouement. À la suite de la crise, l'autorité de régulation a imposé à la plupart des organismes de retraite d'élaborer des plans de redressement afin de ramener leur capitalisation à un niveau satisfaisant dans un délai de cinq ans. Or, certains craignent que l'ajustement exigé par l'autorité de régulation ne soit trop brusque, et qu'il ne puisse avoir des conséquences préjudiciables sur le plan macroéconomique. Cela dit, les simulations de l'OCDE indiquent que les politiques actuelles ne déboucheront pas à long terme sur un coefficient de capitalisation permettant aux organismes de retraite de tenir leurs engagements d'assurer des taux de remplacement pouvant aller jusqu'à 80 % du salaire moyen. Cela soulève la question de l'application de changements de paramètres permettant de garantir les prestations de retraite sans nuire fortement à l'équité intergénérationnelle et à la croissance. Les retraites professionnelles sont transférables, ce qui favorise la mobilité des travailleurs. Néanmoins, il leur est souvent très difficile de comparer les différents régimes de retraite, ce qui représente en pratique un obstacle à la mobilité, qu'il conviendrait de réduire. Ce document de travail se rapporte à l’Étude économique des Pays-Bas de 2010 (www.oecd.org/eco/etudes/Pays-Bas).

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dx.doi.org/10.1787/5kgkdgg5fxd3-en
    Download Restriction: no

    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 832.

    as in new window
    Length:
    Date of creation: 17 Jan 2011
    Date of revision:
    Handle: RePEc:oec:ecoaaa:832-en

    Contact details of provider:
    Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
    Phone: 33-(0)-1-45 24 82 00
    Fax: 33-(0)-1-45 24 85 00
    Email:
    Web page: http://www.oecd.org
    More information through EDIRC

    Related research

    Keywords: Pension solvency; recovery plans; financial crisis; crise financière; Solvabilité du système de retraite; plans de redressement;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:832-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.