ABSTRACT
Risk-based supervision is being increasingly adopted worldwide. As an example of such risk-based supervision, this chapter reviews the Financial Assessment Framework for pension funds in the Netherlands. It operates under the Pension Act that was changed signi cantly in 2007. e main elements of this framework include mark-to-market valuation of assets and liabilities, a full funding requirement, risk-based solvency requirements, and a continuity analysis for assessing the pension fund’s solvency in the long run. Together these building blocks o er a solid foundation for the incentive-compatible regulation of occupational pensions in the Netherlands.
