Over ons

Administrative costs

A lot of work has been done in recent years to improve the transparency of the administrative costs. Dutch pension funds are ‘leader in transparency’ in this area and internationally they get a lot of compliments for it.

Position of the Federation of the Dutch Pension Funds

The Federation of the Dutch Pension Funds has invested much energy in improving transparency of administrative costs. That started with motivating asset managers to give more insight in the asset management costs. The Recommendations on Administrative Costs were first issued in 2011. The self-regulation of the pension funds to become more transparent has been transformed into legislation. In 2016 the Federation has made a revised edition of the Recommendations.In the new version a big number of types of costs are more clearly described. There is also a total overview of all types of costs categories that regards pension funds. With this overview a pension fund can check whether all types of costs are in view and these types of costs are part of the composing of the three main types of costs. The revised edition also makes it easier to compare the costs between pension funds.

What type of information pension funds need to report?
  • The pension management costs in euros per member (sum of active members and pensioners).
  • Asset management costs as a percentage of average assets under management and in addition to review these costs in relation to the investment mix selected and the relevant benchmark costs and to the long term return.
  • The transaction costs on a separate basis as a percentage of average assets under management.

Source: LCP

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