Dutch pension schemes score low when it comes to the speed at which they publish their annual results, according to annual research conducted by KPMG

The research, which looked at over a 100 Dutch pension schemes, shows that more than half of the schemes need two to four months to publish their annual accounts. One in four even needs four to six months to publish their accounts and 2% need more than the legal allowance of six months.

Edward Snieder, head of pension funds at KPMG in the Netherlands, thinks it old fashioned to score so low on timing of information provision. "The turbulence in the market and the increased importance of risk management require a change in behaviour," he said.

"With quick information provision trustees are able to work more pro-actively," said Snieder, pointing out that navigating a scheme based on figures that are six months old is pointless.

The role of pension fund advisors is crucial in the quick provision of accounts, according to KPMG. The company stresses that it is one of the aspects at which providers can outdo their competitors.

"If pension schemes have more time available for the analysis, they can also come to grips more with the figures," said Snieder. "This will lead to a better informed board, which in turn will improve their ability to deal with risk management. They will be more independent of third party interpretation of the figures and are in a position to ask critical questions to asset managers or spot mistakes."
 
He added that the process can be made more efficient and more effective through good planning and more comprehensible agreements between pension scheme, asset manager, actuary and accountant.

a.zeevalkink@wilmington.co.uk 

First published 23.03.2011