Aon Hewitt Overhaul of the Dutch Pension System
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Transcript of Aon Hewitt Overhaul of the Dutch Pension System
De nieuwe Ziektewet en bijbehorende wijzigingen van de WIA hebben grote gevolgen voor werkgevers die veel met tijdelijke krachten werken. Hoe hoger het verzuim, hoe meer premie u straks betaalt. Ook voor u geldt dat het be-lang van verzuim- en schadelastbeheersing nu groter is dan ooit. Hoe staat u ervoor? Hoe kunt u uw risico’s het hoofd bieden? Goed voorbereid zijn is belangrijk. Aon He-witt zet alle belangrijke ontwikkelingen op een rij en biedt u een handreiking om risico’s boven tafel te krijgen. Zodat u die maatregelen kunt treffen die nodig zijn om slim in te spelen op alle veranderingen.
Augustus 2012
Whitepaper
Overhaul of the pension system
White Paper
The pension industry is being reformed. The state pension age and the fiscal standard pension retirement age are rising to 67. At the same time, the Financial Assessment Framework for Pension Funds is also being revised. All these changes in legislation and regulation will impact on organisations and their employees. Employers will have to adapt their pension schemes in line with the changes. Aon Hewitt sets out the main developments and outlines problem-solving approaches, so that you can take the steps required.
April 2013
2 | White Paper: Reform of the pension system | April 2013
Contents:
1 On the eve of ... 3
2 An overview of the changes 3
State pension age to increase 3
Standard pension retirement age to increase 4
Revision of Financial Assessment Framework for Pension Funds 5
3 What does this mean for you? 7
Consequences 7
4 Problem-solving approaches 8
Free choice of standard pension retirement age 8
Definedbenefitpensionschemes 8
Definedcontributionpensionschemes 10
5 Aon’s vision 11
Complete overview 11
What can you do? 11
Aon’s recommendations 11
Contact 12
About Aon (Hewitt) 12
3 | White Paper: Reform of the pension system | April 2013
1 On the eve of ...
Old is poor‘Oldage’usedtobesynonymouswith‘poverty’.Becauseifyouweren’tworking,youhadnoincome.In
anagriculturalsociety,theelderlyusedtolivewiththeyoungergenerationsandwerelookedafter.Howe-
ver,thesituationwasdifferentinurbanareaswheretheelderlyusuallydependedoncharity.Thisdidnot
changeuntilthemid-19thcentury.WiththeintroductionofthePovertyActin1854,thegovernmenttook
onresponsibilityforcareforthepoor.
Bytheendofthe19thcentury,someemployerswerebeginningtofeelsimilarlyresponsible.Takeone
blanketmanufacturerinLeiden.In1897,hepaidoutthreeguildersaweektohisformeremployees.Itwas
aroundthistimethatmoreandmoreemployersbegantorealisetheneedforchange.Theyintroduceda
systemofindustrypensionfunds,wherebytheywithheldpartoftheiremployees’wagesinordertopay
themoneyoutoncetheemployeehadreachedacertainage.
The General Old Age Pensions Act and pensionTherewereincreasingcallsforthegovernmenttoensurethatpeoplecouldenjoytheiroldage.Thesoluti-
oncamein1947:theintroductionoftheOldAgePensions(EmergencyProvisions)ActbySocialAffairsmi-
nisteratthetime,WillemDrees.Thiswasfollowedin1959bytheofficialintroductionoftheAOW-the
GeneralOldAgePensionsAct-byministerKoSuurhoff,undertheleadershipofDrees,whobythattime
hadbeenelectedPrimeMinister.
WhiletheEmergencyProvisionsActhadquiteafewrestrictions,theAOWprovidedforeveryonewhohad
livedintheNetherlandsfromtheageof15to65toreceiveabenefit.Asupplementtothisisapensionfa-
cility,viaacollectiveoradefinedcontributionscheme.In1938,around8%ofemployeesaccruedextra
pensionontopoftheAOW;thatpercentageisnowabout90%.
Major changesAndnow,morethanhalfacenturyaftertheintroductionof‘thecrownjewelofthewelfarestate’,major
changesareinthepipeline.Thestatepensionageisbeingincreasedforthefirsttimeandmanychanges
arebeingintroducedwithregardtopensions.TheFinancialAssessmentFrameworkisbeingrevised;ac-
crualratesarebeingloweredandfiscalscalesarebeingadjusted.Weareontheeveofanumberofmajor
changeswhichwillhaveconsequencesforemployersandemployeesalike.
2 An overview of the changes
State pension age to increase
Theincreasetothestatepensionagehardlycomesasasurprise.TheAOW-theso-calledfirstpillarof
pension-hasbeenthesubjectofdiscussionforawhile.Thestatepensionagehasnotbeenchangedsince
itwassetat65in1957.
Changeisneedednow,however,torespondtothesignificantincreaseinlifeexpectancy.Figuresfrom
StatisticsNetherlands(CBS)showthatmenbornin1957hadalifeexpectancyof71,whilethosebornin
2011hadalifeexpectancyof79.Women’slifeexpectancyincreasedfrom74tonearly83inthesameperi-
od.Thisallmeanslongerentitlementtoanold-agepensionandsoaringgovernmentexpenditure.
4 | White Paper: Reform of the pension system | April 2013
Thereisanotherreasontoincreasethestatepensionage.Theratioofworkingpeople(thepremium-
payingshareofthepopulation)topensioners(old-agepensionrecipients)haschangedsubstantiallyandis
settochangeevenmoreinthenearfutureduetotheageingofthepopulationanddeclineinthenumber
ofyoungpeopleinthepopulation.Inotherwords:therearefewerworkingpeopleinproportiontothe
numberofpensionerscollectinganold-agepension.Theratioiscurrentlyfourworkingpeopletoone
non-workingperson.Thepicturein30years’timewillbeverydifferent:twoworkingpeopletoeveryone
non-workingperson.
Inshort,thereisonlyonewaytokeepthestatepensionaffordableinthefuturetoo:wemustcarryon
workinglonger.TheVAPAct(RaisingoftheStatePensionAgeandStandardPensionRetirementAgeAct)
hasnowbeenadoptedbythegovernmentinTheHague.Thestatepensionagewillbegraduallyincre-
ased,startingin2013.Firstbyonemonthperyear,laterinlargerincrements.In2019,thestatepension
agewillbe66years,in2023itwillbe67.From2024onwardsthisagewillbelinkedtolifeexpectancy.
IntheCoalitionAgreement,theVVDandPvdApartieshaveagreedthattheywillacceleratethisprocess
evenmore.Ifparliamentagrees,thestatepensionagewillbe66asearlyas2018and67in2021.
Standard pension retirement age to increase
TheVAPActalsohasconsequencesforsupplementarypensionsinwhatisreferredtoasthesecondpillar.
Heretootheissueoflifeexpectancyplaysarole:pensionshavetobepaidoutforalongerperiodthan
previouslyestimated.Furthermorepremiumsarecurrentlysohigh-onaveragewealreadyworkonedaya
weekforourpension-thatafurtherincreaseinpremiumchargesthreatenstobecomeunaffordable.
Thelawalsoprovidesforthefiscalpensionagetobeincreased,alongwiththestatepensionage.The
accrualofyourpensionreceivesfavourabletaxtreatment.However,InlandRevenuedoessetlimitstohow
muchpensionyoumayaccrue.Asof1January2014,thefiscalpensionagewillberaisedto67yearsinone
go.Thegovernmentis‘forcing’thisbyadjustingthefiscalframeworks,meaningthatthemaximumaccrual
ratesfora‘pure’pensionscheme,afinalsalaryoraveragesalaryscheme,willbereduced.Theseadjust-
mentsalsohaveanimpactonthemaximumfiscalpremiumscalesfordefinedcontributionschemes.
Year State pension age under current legislation State pension age under coalition agreement
2013 65 + 1 month 65 + 1 month
2014 65 + 2 month 65 + 2 month
2015 65 + 3 month 65 + 3 month
2016 65 + 5 month 65 + 6 month
2017 65 + 7 month 65 + 9 month
2018 65 + 9 month 66
2019 66 66 + 4 month
2020 66 + 3 month 66 + 8 month
2021 66 + 6 month 67
2022 66 + 9 month
2023 67
5 | White Paper: Reform of the pension system | April 2013
Definedbenefit
Forso-calleddefinedbenefitpensionschemes,wherethebenefitissetinadvance,themaximumaccrual
ratesforaveragesalaryschemeswillbeloweredfrom2.25%to2.15%asof1January.Afurthercutto
1.75%ofthepensionbasewillprobablyfollowon1January2015.ThishasbeenagreedintheCoalition
AgreementandwasrecentlyincorporatedintheWitteveen2015legislativeproposal.Thislegislative
proposal-alsoreferredtoinformallyastheWitteveenframework-providesforlimitsonthetax-friendly
treatmentofpensionaccrualintheNetherlands.
Itisalsoexpectedthatpensionaccrualwithfavourabletaxtreatmentwillthenonlybepossiblefor
incomesofupto100,000euros.Forfinalsalaryschemes,thelawmeansareductionofthemaximum
accrualratefrom2.0%to1.9%in2014andpossiblyafurtherreductionto1.55%in2015.
Definedcontribution
From1January2014,adifferentfiscallimitwillalsoapplytothedefinedcontributionschemes,whereby
theindividualemployeepaysapremiumforindividualendowmentinsurancewithapensionclause.In
otherwords,anadjustmentoftheWitteveenframework.Theriseinthestandardpensionretirementage
to67andthecorrespondingreductioninpensionaccrualby0.1%meanthatvirtuallyalldefinedcontribu-
tionscalesmustbeadjusted.Newscaleswerethereforepublishedattheendof2012showingthefollo-
wing changes:
• Netscalesbasedonanaveragesalarypensionwith2.15%annualaccrual(waspreviously2.25%)
• Expansionofthescalestoincludetheagebracketof65to66
• Updateofthemortalitytable
Thenewstandardpensionretirementageonlyappliestonewpensionagreements.Fromnowon,these
willbecalculatedwithreferencetothenewretirementage.However,theoldagreementswillalso
continuetoexist.Inpractice,thatmeansthatinfutureanemployeehaveapensionwithdifferent
retirementdates:onepartwillstartpayingoutfromtheageof65,theotherfromtheageof67.
Thisimpliesamismatchbetweenthestartdateofthestatepensionontheonehandandthestandard
pensionretirementageontheother,evenasidefromtheultimatedecisionforastandardpension
retirementageof65or67.Inchapter4wereturntothepossibilitiesforrepairingthisandtheadvantages
anddisadvantagesinherentinthechoices.
Reform of Financial Assessment Framework for Pension Funds
Asstated,muchmoreischangingintermsofpensions.Besidestheincreaseinthestatepensionageand
standardpensionretirementage,thenewFinancialAssessmentFrameworkforPensionFunds(FTK)is
expectedtobeintroducedon1January2015.TheFTKispartofthePensionsActwhichlaysdownthelegal
financialrequirementsforpensionfunds.
MinisterHenkKampofSocialAffairsandEmployment(SZW)hopesthereformoftheFTKwillmake
supplementarypensions“moretransparentandbetterabletowithstandfinancialshocks”,hesaysinaletter
totheLowerHouse.ThenewFTKstipulatesamongotherthingsthatfundsmustclearlycommunicatethe
inancialrisksandtheconsequencesforthepurchasingpowerofthepension.Participantsareentitledtoa
realisticpicture,alsoinrelationtowhetherthepensionisfullyindexedornot.Thestatutoryframework
thereforeensuresthatthecontractstakebetteraccountofthefinancingrequiredforindexation.
6 | White Paper: Reform of the pension system | April 2013
Nominal or real contract
Thegovernmentseemedtooptforasinglecomprehensivenewassessmentframework,withroomfortwo
typesofpensioncontract:the(existing)nominalcontractandthe(new)realcontract.BecauseoftheSocial
Agreementconcludedbetweenthegovernmentandsocialpartners,theexactdetailsoftheFTKarestill
unclear.
Tosummarise,withthenominalcontractsindexationiscontingentontheparticularpensionfund’sfinancial
position.Thefundcanonlyuseareductionofaccruedentitlementsandbenefitsasamanagementinstru-
mentinthemostextremecase.Withtherealcontract,pensionentitlementsandbenefitsareautomatically
indexedeachyear.
Bymeansofanannualfeasibilitytest,pensionfundsmustdemonstratethatthepensionambitionpromisedis
realisticandfeasible.Thetechniquesofthistestarebasedonthecurrentcontinuityanalysis.Theoutcomes
ofthisfeasibilitytestformthebasisforcommunicationwithparticipantsonthepurchasingpowerandrisks
oftheirpension.
Incalculatingthecostsoffutureindexation,fundsmaytakeintoaccountpartoftheexpectedreturnontheir
investments.Furthermore,withbothnominalandrealcontracts,theymaydeterminethefundingratiosfor
anaverageof12months.Amorestableinterestratewillbeusedforcalculationsforthelongerterm.The
governmenthopesthiswillpreventtheneedfordrasticmeasuresastheresultofsuddenfluctuationsinthe
fundingratio.
TheSocialAgreement
InApril2013,thegovernmentandsocialpartnersconcludedaSocialAgreementwhichalsocontains
agreementsaffectingthenewregulationsconcerningpensions.Thesocialpartnerswantmorestabilityin
thepensionsystem.Theyarguethatpartiesmustberequiredto‘incorporate’theexistingentitlementsin
thenewcontract,whichwouldbesubjecttocleargroundrulesmonitoredbyDeNederlandscheBank.
Thesocialpartnersalsowantthepossibilitiesformakingthenotionalinterestratemorestabletobe
studied.Theywanttopreventtherigidseparationbetweenthenominalandrealframework,whichcould
causethestricternominalcontracttodisappear.Forthetransitionalyearof2014,thesocialpartnerswant
additional measures to prevent a reduction of the nominal value of pensions and premium increases as a
resultofpolicyregulations.Theaimofthisisto‘getinlane’yforthenewcontractasof1January2015.
Thedetailsofthesepointsmustbefinalisedbefore1June2013.
7 | White Paper: Reform of the pension system | April 2013
3 What does this mean for you?
Consequences
Thechangesinlegislationandregulationsinrelationtopensionshaveagreatimpacton(large)organisations
andtheiremployees.TheruleslaiddowninTheHaguemaymeanchangestothepensionscheme.
Employerswillatleasthavetodeterminewhethertheirpensionschemeisexcessive.Ifso,theywillhaveto
amendthescheme.However,thedecisiontheymakegoesbeyondsimplyamendingthepensionscheme.
ThisdecisionalsohasanimpactonbenefitsundertheUnemploymentInsuranceAct(WW)orWorkand
Income(CapacityforWork)Act(WIA).Afterall,dependingonthedecision,therecouldbeacaseof
concurrenceandthereforeareductioninbenefitfortheemployeeorformeremployee.Employerswhose
employeepensionschemesareadministeredbyaninsurerwillalsofaceadministrativeandcontractual
restrictionsfrominsurers.
Butthechangesalsomeanopportunitiesforemployers.Intheeventofapossiblechangetothestandard
pensionretirementage,theycanpushdownpremiumcosts.Thereisalsoacertain‘momentum’for
discussingthepensionschemeinabroadersense.
Thechangesandchoicesfacingemployersrequireknowledgeandexpertiseonthenewpension
legislationandregulations.Becausetherearealsorisks.Thepensionpremium‘freedup’couldbecome
thesubjectofnegotiationsonemploymentconditionsandcouldbeusedforotherpurposes,suchas
highersalariesforexample.Foremployees,thenewlegislationandregulationsmeanthattheyarebeing
encouragedbynumerousfiscalmeasurestocontinueworkinglonger.
Doesthepensionschemefallwithinfiscalframeworkasof1January2014?
Change to pension scheme required
Amendment of pension scheme with standard pension
retirement age of 65 maintained
Amendment of pension scheme with increase to standard pension
retirementage(forexample,67)
Breakwithaccruedentitlements
Conversion of accrued entitlements
Change to pension scheme notfiscallyrequired
8 | White Paper: Reform of the pension system | April 2013
4 Problem-solving approaches
Free choice of standard pension retirement age
Theriseinthestatepensionage-atwhateverpacethisoccurs-isapoliticaldecisionandthereforea
reality.Theriseofthestandardpensionretirementageleavesmorescopeforindividualchoices.Asstated:
thenewstandardpensionretirementageof67onlyappliestonewpensionagreements.Thisimpliesa
mismatchbetweenthestartdateofthestatepensionontheonehandandthestandardpension
retirementageontheother.Employersarefreetodecidehowtheydealwiththat.
Defined benefit pension schemes
Forpensionschemeswherebythebenefitissetinadvance–thesetendtobetheaverageandfinalsalary
schemes-thefollowingpossibilitiesseemthemostrealistic:
1) Maintainingthestandardpensionretirementageof65
2) Increasingthestandardpensionretirementageto67from1January2014,wherebythepension
entitlementsaccrueduntil31December2013continuetobebasedonastandardpension
retirementageof65.
3) Increasingthestandardpensionretirementageto67from1January2014,wherebythepension
entitlementsaccrueduntil31December2013arecollectivelyrecalculatedonthebasisofa
standardpensionretirementageof67.
Maintainingthestandardpensionretirementage
Basedonthecurrentregulations,itispossibletomaintainthestandardpensionretirementageof65.An
important precondition applies however that the new pension scheme as a whole must fall within the new
fiscalframeworks.Maintainingthestandardpensionretirementageof65meansthattheearlierstarting
agewillhavetobecompensated.Thiscanbedonebyusingalowerratethanthemaximumaccrualrate
permittedunderfiscalregulations.Increasingtheoffsettoabovetheminimalfiscaloffsetisanotheroption.
However,animportantpointofattentionisthatthefiscallimitscitedearlierpertaintothesituationasof1
January2014.TheCoalitionAgreementstipulatesthatthefiscallimits-andbyextensiontheaccrualrates-
willprobablybereducedevenfurtherfrom2015.ThishassincebeenincludedintheWitteveen2015le-
gislativeproposal.
Advantages:• Nomajorchangesintermsofadministration
• No conversion of accrued pensions required
• Limitedchangestolegaldocuments
• Communication with participants relatively simple
• Tiesinwellwithaccruedpre-pension
• No conversion of accrued entitlements required
Disadvantages:• Requirement to continue working in order to postpone pension after age of 65
• Concurrencewithsocialsecuritybenefitsandthereforereductionofthebenefits
• Mismatchbetweenstatepensionageandpossibledismissalage
• Terminationofriskcoveratageof65isatoddswithWGBL(EqualTreatmentAct)
• Thisisatemporarysolution;changesmayonceagainbeneededasof1January2015
9 | White Paper: Reform of the pension system | April 2013
Increasingstandardpensionretirementageto67,accruedentitlementsremain
Itisalsopossibletoincreasethestandardpensionretirementageto67.Inthatcase,from1January2014
theaccrualwillbebasedonretirementat67.
Advantages:• Tiesinwithacceptablefiscalstandardpensionretirementagefrom2014
• Morefiscallatitudebasedonaccrualrates
• Moremotivationamongemployeestocontinueworkinglonger
• Requirement to continue working only for entitlements accrued in the past (unless conversion occurs)
• Concurrencewithbenefitsongroundsofsocialfacilitiesonlyforentitlementsaccruedinthepast
(unless conversion occurs)
Disadvantages:• Moreextensivechangestolegaldocuments
• Communicationwithparticipantsmoredifficultduetothedifferencebetweenaccruedandnewen-
titlements.However,thePensionsActdoesnotprohibitcommunicatingaboutasinglepensionage
• Requireschangestoadministrationsystem,highone-offcosts
• Mismatchwithstatepensionageremains
Increasingstandardpensionretirementageto67,accruedentitlementsconverted
A third option is to convert the entitlements already accrued with a retirement age of 65 for everyone
collectivelytoanentitlementat67.Thiswouldresultinasituationsimilartotheprevioussituation.According
tostatesecretaryforSocialAffairsandEmployment,JettaKlijnsma,acollectiveconversionwouldbeseenasa
collectivevaluetransferongroundsofthePensionsAct.
Advantages:• Communication with participants is simpler
• Participantsarebetterabletoassesstheirownpensionsituation(asingleretirementdate)
• Future administration is simpler and therefore cheaper
• Noconcurrenceofpensionandsocialsecuritybenefitsuptostatepensionage
Disadvantages:• Participantsmayobjecttothecollectivetransferoftheirpensionentitlements.Besidestheactive
participants,theoccupationallydisabledparticipantsandparticipantswhoaregrantedawaiver
ofpremiummustalsobetakenintoaccount
• Thismaybeneutralfortheparticipantatthemomentofconversion,butinthefutureadifference
couldariseintheeventofanytrade-ininordertohavebenefitpaymentsstartonthe(earlier)
originalstartdate.Afterall,thefutureratesforflexibilisationhavenotyetbeenset
• Highone-offtransitioncosts
Thechanginglawsandregulationsalsopromptquestionsconcerningothergroupsbesidesworking
peopleandpensioners.Theseinclude:
• Participants who have taken pre-pension
• Participantswithanearlyretirementbenefit
• ParticipantswithanoccupationaldisabilitypensionorSurvivingDependantsActshortfallpension
(temporary partner’s pension) which has started payment
10 | White Paper: Reform of the pension system | April 2013
Thebenefittheyreceivewillstoponthefirstdayofthemonthinwhichtheyturn65andnomoneyis
reservedtocontinuethisbenefituntilthenewstatepensionage.Thiswillresultinatemporaryfallinincome.
Defined contribution pension schemes
Thenewregulationsalsohaveconsequencesforthedefinedcontributionschemes,wherebytheindividual
employeepaysapremiumforindividualendowmentinsurancewithapensionclause.Asdescribedin
chapter2,thechangesinthefiscalframeworkalsohaveanimpactonthedefinedcontributionscales.
Attheendof2012,newscaleswerepublishedbasedonanaveragesalarypensionwith2.15%annual
accrual.Thescaleswerealsoexpandedtoincludeanagebracketfor65to66andthemortalitytables
wereupdated.
Only‘old’scalesthatremainbelowthe‘new’scalesforallagebracketscanstillbeusedin2014.The
definedcontributionmayamounttoamaximum86%ofthe‘old’scale,unlessthereiscompensationvia
theoffsetorthepensionablesalary.TheTaxandCustomsAdministrationtestswhetherthereisanyexcess
withrespecttothefiscalregulations.Maintainingthe‘old’scalesmayactuallybeatoddswiththeequal
treatmentlegislation.
Besidestheregular4%scales,scalesarealsoavailablewhichassumeanotionalinterestrateof3%.A3%
scalehashighermaximumaccrualratesthana4%scaleandcanthereforebeasolutionforcompensating
thelowerpensionaccrual.Aconditionforusinga3%scaleisthatthepensionpromisemustremainwithin
thefiscallimits.Theconditionsforthistesthavebeenrelaxedsince2013.Atestisonlyrequiredifcertain
so-called‘events’occur,suchasatransferofvalue,terminationofthepartnerrelationshiporthestartof
paymentofthepension.Thecurrentsalarymaysubsequentlybeusedasthebasisforthistest(finalsalary
test)andthehistoricalsalarynolongerneedstobeconsidered.Anysurplusrevertstothepension
administrator.
11 | White Paper: Reform of the pension system | April 2013
5 Aon’s vision
Complete overview
Thecomingperiodwillbecharacterisedbymajorchanges,whichcouldoccurinrapidsuccession.Thefiscal
possibilitieswillbecomeevenmorelimitedandtheSocialAgreementwillpromptindividuallegislative
proposals.Thesecouldallhaveconsequencesforyourpensionscheme.
Aonmonitorstheentirearena.Ithastheknowledgerequiredtoassistwiththeseissuesanddecisions.Aon
alsohastheoverviewthatmostinsurersandpensionadministratorsarelacking.Thankstothisposition,Aon
hasimportantinformationonthecurrentstateofaffairsattheinsurers:whocanofferwhatwhenitcomesto
the changes?
Inordertokeepitsoverviewuptodate,AonusesWorldClassBrooking,anextensivedatabasecontainingall
thetermsandconditionsandoffersfromtheinsurers.Aon’sclientconsultantsalsocloselymonitorthemarket
andcurrentlegislationandregulations.
What can you do?
Theriseinthestatepensionageandstandardpensionretirementageandotherlegislativeamendments
haveanimpactonbusinesses.Asanemployer,youarefacedwithdecidinghowtodealwiththechanges.
Thiscanbedoneon3‘levels’:
1) Focus on legal introduction
Youonlymakethenecessarychanges.
2)Recalibrationofpensionscheme
Youundertakeafundamentalrecalibrationofthestartingpointsofyourpensionscheme,suchasthe
substantivepromises,premiumdevelopmentandriskallocation.
3)Recalibrationofpensionscheme
You use the increase in the pension age and the ageing of the population as an opportunity to not only
tacklethepensiondossier,buttoviewthisintermsofyourpersonnelpolicyasawholeandtherelated
employmentconditions.Continuingworkinglongerisnotjustapensionissue.
Aon’s recommendations
Aonadvisesthatyoutakestockofallthechangesyouarefacingingoodtime.Thismeansyoucantake
timelyactiontoo.Thefollowingstepscanbetakeninthisrespect:
• Takestockofwhetheryourpensionschemeisexcessive
• Ifso,chartoutalltheoptions,includingtheiradvantagesanddisadvantages.Takeintoaccountthe
changestakingeffectasof1January2014,aswellasthepoliticalplansfor1January2015.
• Obtaininsightintowhatsolutionsyourinsurerorpensionadministratorcanoffer
• Start the process of developing a new pension scheme on time
• Useexpertsupportintalkswithyourinsurerorpensionadministrator
7975-ENG-W
hiteP-V1
Over Aon (Hewitt)AonHewittisworldwidemarketleaderinsolutionsforHumanResourcesManagement.
Thecompanyadvisesorganisationsonsolvingcomplexissuesintheareasofemployment
conditions,talentmanagementandtherelatedfinancialchallenges.AonHewittdesigns,
implements,communicatesandmanagesawiderangeofsolutionsrelatingtohuman
capital,pensions,investmentmanagement,healthcare,remuneration,insuranceandtalent
management.AonHewittthusbooststhereturnonorganisations’mostimportantcapital:
theiremployees.Thecompanyemploysover29,000professionalsin90countries.
AonHewittispartofinsurancebrokerandriskadviserAonplc,London,UK.Theworldwide
Aonnetworkincludesapproximately600officesinover120countriesandhasmorethan
62,000employees.Moreinformation:www.aonhewitt.com.
©2013AonHewitt
Allrightsreserved.Nopartofthisreportmaybereproduced,storedinanautomateddata
fileorpublished,inanyformormannerwhatsoever,electronically,mechanically,by
photocopying,recordingoranyothermanner,withouttheadvancewrittenpermissionof
AonHewitt.
Firstedition,April2013.
Contact
Drs. F.H.P. Driessen
FrankDriessenisChiefCommercialOfficer(CCO)ofAonHewittNederland.Heis
responsibleforpensionandinvestmentconsultancyandsalesinthemarketfor
pensionfunds,internationalcompaniesandtheSMEsector.AsChiefActuaryand
PrincipalClientConsultant,healsoadvisesclientsondesigning,implementing
andfinancingpensionschemes,de-riskingpensionrisks,M&Aprocessesand
negotiationswithinsurers.
FrankDriessen M+31 (0)6 129 918 85
www.aon.nl