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Freedom of choice for employers with regard to supplementary pensions


Publication number: 2015-03
Authors: L. Kok & B. Baarsma
Commissioned by: Dutch Association of Insurers
Published by: SEO Amsterdam Economics
ISBN: 978-90-6733-769-4

Is it desirable that employers that are bound by industry-wide pension plans are given the freedom to choose a pension provider? For defined benefit pensions with a flat rate contribution a free choice of pension provider is of no use. The flat-rate contribution leads to risk selection, hindering a proper market mechanism. For industry-wide defined contribution pension plans a free choice of pension provider may be a good option, though. It could lead to greater efficiency in the execution of pension schemes.

That is the message of an essay that was written by Lucy Cook and Barbara Baarsma for the Dutch Association of Insurers.


Category: 2015, Lucy Kok, Healthcare & Social Security