Exploring the Netherlands
Isabel Coles and Andrew Vaughan | 22 March 2019
Our research considers the impact UK DB pension plans are having on the companies that make up the Dutch AEX index, and highlights how these companies are addressing the challenges posed by their DB pension obligations.
The analysis covers 16 multinational companies (12 AEX index constituents plus 4 other Dutch companies with large UK DB plans), with around £55.8 billion of UK DB pension liabilities between them.
Private sector DB plans in the Netherlands can represent a large cost for companies, with strict funding and monitoring requirements in place. Similarly, DB pensions remain an important issue for companies in the UK. As well as the obvious impact on the company’s performance through the balance sheet and income statement, the level of contributions required and payments to the parent company are receiving a lot of attention.
In this report, we look at how funding levels have changed and consider developments in three important areas:
- Assets and investment risk
- Benefit payments
- Cash contributions
