DNB publishes new rate term structure for pension funds

News
Date 3 October 2012

De Nederlandsche Bank (DNB) today published a new rate term structure for Dutch pension funds as of end-September 2012, which for the first time applies an 'ultimate forward rate' (UFR).

As a result of the introduction of this UFR, the basis pension funds use for calculating their future liabilities becomes less sensitive to market fluctuations. The new UFR forms part of the September Pension Package that was adopted by the Cabinet late September. This package contains measures that anticipate the revised Pension Act and a new Financial Assessment Framework for pension funds expected to come into force in 2014. The new frameworks are to contribute to a more future-proof pension system.