Regulatory Alerts2025-09-11
Inform Participants Promptly and Specifically About Compensation
The Dutch Authority for the Financial Markets (AFM) mandates that pension funds inform participants early and concretely about compensation schemes resulting from the abolition of the average accrual system. The regulator highlights that varying fund structures and individual life events create significant risks of disappointment, requiring transparent communication regarding eligibility, calculation methods, and funding sources. Pension funds are urged to collaborate with employers and social partners to ensure participants understand how specific choices impact their future pension compensation before the transition date.
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