Dutch pension funds exposed themselves to risks of a market crash by massively investing into shares and obligations on different stock markets: funded pension schemes reached 86% before the financial crisis at the end of 2008, as opposed to 40% in 2000. None of the large Dutch pension funds (out of a total of 600) reaches the minimum coverage rate of its commitments anymore, which the Dutch Central Bank (DNB) sets at 105%. As a result, one of the biggest pension funds in the world, the Dutch civil servants pension scheme (Algemeen Burgerlijk Pensioenfonds, ABP), which takes care of supplementary pension for 2.8 million former civil servants in the Netherlands, announced that pensions would be cut in 2011. The incomes of 150,000 other beneficiaries from 14 pension schemes will also be cut next year, between 1 and 14%.
s pension scheme (Algemeen Burgerlijk Pensioenfonds, ABP), which takes care of supplementary pension for 2.8 million former civil servants in the Netherlands, announced that pensions would be cut in 2011. The incomes of 150,000 other beneficiaries from 14 pension schemes will also be cut next year, between 1 and 14%.
Instead of changing the funding policy of these funds, which pay with employees’ money (mandatory contributions), Minister for Employment and Social Affairs Piet Hein Donner propos
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