Mandatory participation for companies

Abstract

In the Netherlands, when representative organisations apply for it, the Minister of Social Affairs can decree a pension scheme as mandatory for a complete industrial sector. The majority of the employees accrue pension in a scheme that is imposed by this mandatory participation for companies. This chapter describes the creation and content of this mandatory participation, as well as the advantages and disadvantages. A comparison with other countries shows that the mandatory participation for companies succeeds well in its objectives, as it encourages saving behaviour, prevents 'blank spots' and avoids competition on labour costs. © 2007 Springer-Verlag Berlin Heidelberg.