Dutch Pension Law Changes To Go Ahead

by Ulrika Lomas, for LawAndTax-News.com, Brussels

16 June 2005

It was reported this week that the Dutch government is still planning to go ahead with the implementation of its proposed new pensions law, despite doubts that the legislation will be in place by the previously mooted January 2006 deadline.

The new rules are designed to afford employees and pensioners greater security in their retirement years by imposing new requirements on pension funds in terms of their liabilities, overall investment strategies, and structures.

According to Investments & Pensions Europe (IPE) the law has been sent by Minister of Social Affairs Aart Jan de Geus to the Council of State.

"I realise that the possibilities of implementation before January 1 are very limited," the news service quoted the Minister as announcing. However, he added that postponement is unlikely to be a problem, as:

"The implementation is not by definition tied to the start of any year."

Earlier this year, the Dutch government also announced its intention to abolish a capital tax on share issues by investment funds from next year in order to improve the competitiveness of the country’s fund sector.

The Finance Ministry indicated in March that the 0.55% levy will be abolished with effect from January 2006.

"This tax is perceived in an increasing manner as a tax that puts Dutch investment funds at a disadvantage to funds based in other countries,” explained a Ministry statement. “Due to the importance of this sector for the Dutch financial markets and the Dutch economy, we propose the tax be scrapped."

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