Background
PPI stands for Premium Pension Institution. This is a pension provider where an employer can place its pension scheme. However, this is only possible if it concerns a defined contribution scheme, where the contribution is fixed, but not the amount of the final pension. In addition to the accrual of pension, a PPI may also offer a variable benefit. The condition is that the PPI does not take any risks and there is no insurance. Therefore, a PPI may not offer a fixed benefit.
Because PPIs are not allowed to bear risks and are not allowed to insure themselves, a PPI cannot guarantee a minimum accrued amount. If an employer wants to co-insure the survivor's pension, or a benefit in the event of incapacity for work, this will have to be placed with an insurer. Often, the PPI can offer it through such an outsourcing construction.
A premium pension institution must have a licence from the Dutch Central Bank (DNB) in order to carry out its activities (Section 2:54h, first paragraph of the Financial Supervision Act). If a premium pension institution also wishes to act as an adviser, intermediary, authorised agent or sub-authorised agent in insurance in the Netherlands, this activity is subject to an additional licence requirement (Section 2:54h, second paragraph of the Financial Supervision Act). The Netherlands currently has 10 PPIs (for an up-to-date overview, see this page on the DNB website), some of which are stand-alone and sometimes part of a larger group.
In 2017, the combined invested assets amounted to just over 6 billion euros, divided among just over 530,000 participants, of which approximately 330,000 were active participants. For up-to-date figures, please refer to the website of the Dutch Central Bank.
The Association therefore also represents the interests of the (affiliated) PPIs and works together with the PPI association, among others.
