This document summarizes the results of a survey of 60+ companies regarding pensions over 100K in the Netherlands. About 75% of survey responses came from compensation & benefits professionals and 25% from HR generalists. 50% of companies have over 50 employees with pensions over 100K, and most companies are taking a similar approach to transitioning these pensions to defined contribution plans or comparable alternatives. Key issues for companies to address include communication, decision making, administration, design, resources, and legislation. The survey aims to trigger discussion around best practices for managing pensions over 100K.

1. Survey: NL Pension 100K+
(December 2014)
CBMN
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2. Survey: NL Pension 100K+
 About the survey participants
 60+ companies / 65 responses
 75% C&B / 25% HR Generalist
 Equal mix of “Head of” / Director / Professionals
 About the companies
 50% have more than 50 employees in pension above 100K
 Approach by and large cost neutral
 About governance, project ownership
 Predominantly in NL / about 25% abroad / apparently a limited role of e.g. RemCo
 In 80% of the companies, decision makers are impacted
 Companies with smaller population have tendency for allowance
 About Pension Design
 Transition to DC (or comparable) very clear
 There is no “one seize fits all” / however many companies take similar approach
 Given time constraints some topics postponed
 E.g. New hire approach / Value of solution for foreigners / Alignment C&B practice
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3. Key elements of current situation
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4. Design considerations
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5. Preferred solution
In case a fixed amount is offered, how
will this amount be established
35%
18%
45%
2%
Gross amount, percentage of base pay
Gross amount, fixed amount or flat rate
Gross amount, based on age (staffel)
Other (please specify)
In case pension above 100K will be
replaced (either via benefit plan or
allowance), will the following benefits be
offered (separately)?
38%
14%
29%
19%
Widow - Survivor pension
Disability cover
Premium waiver in case of disability
Other (please specify)
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6. Key issues recognized
 Before year end
1. Communication
2. Decision making
3. Vendor related
4. Administration
5. Design
6. Resources
7. Insurance cover
8. Benchmark
9. Works council
10. Costs
 Next year
 Legislation – what next?
 Opting out – admin/value
 Benchmark
 New hires - growth in 100K+
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7. Closing Remarks:
Key Topics:
 Has cover per 1/1/2015 for survivor benefits been taken care of?
 Employer duty of care: Cover must be in place effective Jan 1st 2015
 Explain what changed for part above 100K / (reduced) value
 Alternatives for (temporary) cover exist
 Has transition plan for pension and other cover (or alternative) been agreed
and communicated
In case no decision taken yet, consensus in group is to arrange cover
(see above) as soon as possible, but before Jan 1st 2015 (if not already
done so) and take appropriate time to do come to a “fit for purpose”
decision
Companies guided by pension consultants (only) tend to convert to
pension alike solutions. Market may move (in some cases) in a different
direction though
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8. DISCLAIMER
This presentation contains the NL Pension 100K+ survey results summary and
is intended to trigger questions and thoughts in decision making process.
It has been prepared at for information purposes only and by no means is it a
professional advice.
ABOUT CBMN
Having easy access to a relevant professional network will enhance the ability
to expand knowledge, remain current on new developments and improve the
ability to deal with (the pace of) change.
The Compensation & Benefits Management Network (CBMN) on Linked
provides such access to professionals working with reward related processes.
The network is geared around “peer to peer” collaboration, information sharing
and building best practices in a professional and confidential setting.
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