The Fragmentation of Solidarity in Dutch Occupational Pensions.
Solidarity in the second pillar. Differences in solidarity between and within six Dutch pension funds. The question asked in this paper is: what are the differences in solidarity between and within pension funds in the Netherlands. After a theoretical exploration of the concept of solidarity it is defined as redistribution of welfare, following political economical theories. Six pension funds, three on industry and three company level, are chosen with regard to their differences to get a diverse case. By simulating the life-courses of eight virtual people with different backgrounds (the bread-winner, the part-time working mother, eg.), differences in future pension fund income is measured. Differences in solidarity between the six pension funds are big, since there is almost none state policy regarding pension funds. Our results show, most importantly, that redistribution from employees with high incomes to employees with low incomes does not exist within most pension funds. The opposite appears to be true: employees with low incomes gain relatively less from pension funds than employees with high incomes; the redistribution runs from low to high. This unexpected solidarity is explained by a technical measure in pension fund policy: the so-called franchise.
Bol, T., De Deken, J.J.