Honesty Is Best Policy on Rights Cuts
05 June 2012 (PLANSPONSOREurope.com) - Dutch pension funds should be honest with members in their communications on possible rights cuts, according to Dr. Gregory Kasten, founder and CEO at Unified Trust Company.
Last month the Dutch pension regulator revealed more than 100 Dutch pension funds face implementing an average rights cut of 2.2% next year.
Speaking on the second day of PLANSPONSOR’s national conference in Chicago, Kasten said funding issues should not be obscured.
“It is better for them to know than [for] them not to know. It is better for plansponsors that employees are told early enough so they might be able to do something about it.
Philip E. Steele, president at Pension Architects, added that once members are told it is the role of the pension fund to communicate the solutions.