The 'Defined Ambition' Pension Plan: A Dutch Interpretation

7 Pages Posted: 20 May 2013

Date Written: May 17, 2013


As in many other countries, recent developments in demographics and financial markets are having a serious impact on pension systems and contracts in the Netherlands. For example, people living longer and being in good health is a major joint achievement of our welfare states and of medical science. However, these achievements demand a new approach to pension provision when tackling both longevity and aging societies. Traditional occupational DB pension provision has become too expensive for plan sponsors, and new solutions need to be found. On top of these trends we see an increasing individualization in European societies: people no longer participate in (mandatory) collective systems for the sake of solidarity alone; there needs to be a benefit for all. Sharing comparable risks at fair prices and costs has historically been well accepted, but redistribution of welfare in the name of inter-generational solidarity brings more discussion to the table. This article describes a new Dutch pension contract designed to address these challenges.

Keywords: Defined Ambition, Pension Contract, Pension Fund, Supervision, Sustainable

Suggested Citation

Kortleve, Niels, The 'Defined Ambition' Pension Plan: A Dutch Interpretation (May 17, 2013). Rotman International Journal of Pension Management, Vol. 6, No. 1, 2013, Available at SSRN:

Niels Kortleve (Contact Author)

PGGM Investments ( email )

Utrechtseweg 44
P.O.Box 117
Zeist, 3700 AC

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