How the Dutch see it, are we going to the gap in the middle?

I’m really pleased Arun Muralidhar recommended Rogier Swierstra. Tomorrow (Tues) morning we will have a discussion on what has happened and will be happening in the Netherlands.

Use this link to get to

 What have the Dutch ever done for us…a CDC journey!? 

the meeting,

<https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzVlODUwNTItOGI0Ni00YmMyLWIyNjctY2Y3NjY5ZDc3MzJj%40thread.v2/0?context=%7b%22Tid%22%3a%22733793a9-e9e3-4238-95c9-e3e2e46fca6a%22%2c%22Oid%22%3a%2239b1b8b9-6d36-44d5-bf9e-64e1dfb760d5%22%7d>

Some reading by way of background

Let’s not pretend that this is easy, I like Rogier’s bear who thinks that out of sight is out of mind! I have to admit to bafflement on where we stand on Dutch style pensions compared to the UMES style of CDC and the Retirement CDC we are consulting on.

Over the weekend I have published two takes on this. The first is from Rogier himself and is an expression in English and in Formulas of what is happening. It is for financial economists and if you don’t do formulas, leave it alone.

The second is from Paul Watson and Phil Hardingham of Hymans Robertson and is their take (last year) of what we can learn from the Dutch reforms.

Is Dutch reform an admission that CDC does not work or have they accepted that a different approach is needed to the one they had? How does their reformed pension system compare with UMES and Retirement CDC?

Here is a matrix of defined contribution schemes which I take to start with Royal Mail’s CDC on the second to far left and finish with workplace pension DC plans as we know them today on the far right. I see flex and fix as “individual DC Style CDC”.  UMES and Retirement CDC seem to be filling the gap in this (Dutch) diagram being collective in investment, sharing longevity but guaranteeing nothing. You can read more on this (from Aegon) here.

I do hope that if you are reading this, you can join us and either join the conversation or learn for yourself from an eminent financial economist. Here is what Aegon produced last year to help you make your own judgement if you want to go (or watch the video we’ll be offering to those who couldn’t but wanted).

I am sure that it will help many of us define what we are doing relative to our neighbours and perhaps help Rogier!

 Rogier Swierstra works with PGGN, based in the Netherlands, and he  will give us his thoughts on the Dutch pension system and the rise (and fall?) of CDC. He will also look at a newly proposed Pensions Act in the Netherlands: transitioning from CDC 1.0.

He wants to discuss how risk sharing worked in the current CDC system for the occupational funds, and how it is being reformed to a new scheme which combines elements of DC and DB.

For paying members please click ATTENDING here.

For non-paying members please add to your calendar or click at the time.

You  can join this session from the link below.

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Rogier Swierstra is Senior Investment Manager at PGGN where he has worked for over 11 years.

You can read more on him from his linked in profile which is here