Pension fund trustee boards in the Netherlands should be more open to taking the conclusions of internal supervision to heart, while the quality of visitation reports must also be improved. This was the main message stressed by DNB, the Dutch pension fund supervisor.
According to a study conducted by the DNB, trustee boards often fail to be sufficiently proactive towards visitation committees. The study also concluded that reports prepared by such committees too often offer mere observations, rather than "setting normative standards". In addition, the DNB notes that the quality of the visitation process tends to vary, and that there have been cases of "bad practices".
The DNB further warns that many schemes will likely fail to meet the international standards for euro-denominated payments by February 2014, the deadline for compliance. The fact the regulator has still not presented a final draft of the new supervisory regime is another obstacle that stands in the way of revising the pension arrangement, said Betty Mulder, trustee at the Deutsche Bank corporate pension scheme, as is the division of responsibilities between employer and board of trustees.
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