{"text":[[{"start":10.9,"text":"The Netherlands is preparing to open up a €1.5tn slice of its vast retirement industry to international pension providers for the first time. "}],[{"start":21.25,"text":"Hans Vijlbrief, social affairs and employment minister, has agreed to work with the EU to change rules that have led to domestic funds dominating the country’s workplace retirement system."}],[{"start":31.75,"text":"The move follows claims by campaigners that the current set-up contravenes an EU directive relating to cross-border services in member states."}],[{"start":40.35,"text":"The Dutch pension system is by far the largest in the European Economic Area, according to the European Central Bank. Total pension assets under management stood at about €1.97tn at the end of March, according to the Dutch central bank."}],[{"start":56.3,"text":"The system includes the basic state pension provided to all who have worked or lived in the Netherlands, occupational pensions agreed between unions and employers — almost all of which are compulsory — and private pensions."}],[{"start":69.25,"text":"The problem lies with the mandatory occupational retirement system — roughly 80 per cent of the total pension assets under management — which requires employers to ensure their staff are part of a workplace scheme."}],[{"start":81.95,"text":"The nation’s law states that mandatory industry-wide pensions must be run by a Dutch foundation, an independent non-profit organisation, which keeps commercial overseas providers out of the industry."}],[{"start":93.55,"text":"The two largest local pension providers, ABP and PFZW, control nearly half of the market with about €530bn and €250bn of assets under management respectively. ABP serves workers in the government and education sectors and has more than 3mn members, while PFZW serves a similar number of people working in the care and welfare industries."}],[{"start":117.44999999999999,"text":"Vijlbrief told the Dutch parliament in May, in a letter seen by the FT, that a bill would be prepared so that the foundation requirement would not apply to pension institutions from other EU member states that want to operate in the market. "}],[{"start":130.35,"text":"The Dutch social affairs ministry said it would “address and resolve the issue of the foundation requirement in the period ahead”."}],[{"start":136.85,"text":"Hans van Meerten, a former professor of European and international pension law at Utrecht University, said he believed the current set-up was about “protecting the Dutch [pensions] monopoly”."}],[{"start":149.25,"text":"He added: “In the Netherlands there is complete radio silence about this matter.”"}],[{"start":154,"text":"Part of the issue lies with the origins of the mandatory workplace pensions system, which resulted from collective labour agreements negotiated by industry unions with companies decades ago. Unions remain very influential within the pension system, even if membership has fallen in recent decades, according to van Meerten."}],[{"start":172.75,"text":"Jacintha van Bijnen-den Haag, strategic pension adviser at Aon, an insurance and pensions provider, called the Dutch system “a bit of a boys’ network” given unions have “such a large voice”."}],[{"start":184.25,"text":"“It’s all a bit interwoven. These people don’t want to lose their influence,” she added."}],[{"start":190.65,"text":"Although the Dutch government is yet to set out a timetable for the changes, pensions consultants believe greater competition will also benefit retirement savers."}],[{"start":200.35,"text":"“What’s wrong with more competition? It’s about serving the employees when they retire,” said Sander Deelstra, partner at pension consultants Howden in Amsterdam. “If you meet the requirements of the unions why shouldn’t the employers and employees be able to choose?”"}],[{"start":214.5,"text":"ABP and PFZW have performed poorly versus a peer group of other public pension plans across the world. "}],[{"start":221.85,"text":"Over the past 15 years, both were in the three worst performers for post-inflation returns in a comparison of 24 public plans globally, including the Canada Pension Plan Investment Board, GPIF of Japan and Calpers in the US, according to data from the Finnish Centre for Pensions. "}],[{"start":239.65,"text":"ABP’s returns rose 2.9 per cent in real terms over 15 years to the end of 2025 while PFZW gained only 2.2 per cent, about half of the median return of 4.6 per cent. "}],[{"start":253.95000000000002,"text":"ABP and PFZW acknowledged their returns have been low, arguing that the need to invest conservatively and hedge any interest rate risk has affected performance. "}],[{"start":266.25,"text":"The Dutch pension system is undergoing a wider overhaul from this year to make it more sustainable as the population ages. Funds have begun to switch from a defined-benefit to a defined-contribution system, where retirement income can fluctuate depending on the performance of the fund."}],[{"start":283.1,"text":"Additional reporting by Damian Fantato in London"}],[{"start":295.35,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782205335_6650.mp3"}