The time commitments, as part of the suitability test, involve both a minimum standard and an assessment of actual availability.Full-time equivalent (FTE) score
Candidates for appointment as executive director or supervisory board member of a pension fund from 1 July 2014 will have to meet the time commitment requirements as laid down in article 35a of the Decree implementing the Pension Act and Occupational Pension Scheme (Obligatory Membership) Act (see box below). If a prospective executive director or supervisory board member has a full-time equivalent (FTE) score higher than 1, the pension fund may not proceed with the appointment of the person concerned.
Table 1 - The time commitment requirements as elaborated in the Decree implementing the Pension Act and Occupational Pension Scheme (Obligatory Membership) Act
|Other legal entities||Large pension fund||Small pension fund|
|Executive board chair||0.6||0.6||0.3|
|Supervisory board chair||0.4||0.2||0.2|
|Supervisory board member||0.2||0.1||0.1|
Time commitment requirements in the suitability assessment
If a prospective executive director has an FTE score of 1 or less (and thus combines a number of positions in keeping with the statutory requirements), DNB will decide in the course of the suitability assessment whether, in its view, the candidate does actually have sufficient time available for the proper performance of the intended position. The demands of the position and any existing second jobs will be relevant to this decision. DNB may possibly decide that a given combination of positions will mean that the candidate does not have sufficient time available for the position for which he or she has been nominated.
Brief answer <compulsory> How will DNB test the time commitment requirements until 1 July 2014?
DNB assesses the suitability of policymakers and co-policymakers on the basis of the DNB/AFM 2012 Suitability Policy Rule . This Policy Rule also covers demands on time. DNB assesses suitability in terms of competencies that are of importance in functioning as part of a collective. One of these competencies is loyalty: does the candidate identify with the organisation and feel involved? Can the candidate show that he or she will be able to spend sufficient time on the job to perform it properly (despite any second jobs)?
In assessing suitability DNB will apply the time commitment requirements that will apply from 1 July 2014. This means that DNB expects that when a pension fund puts forward a prospective executive director or supervisory board member for the suitability assessment it will also indicate the FTE score of the person concerned.
In carrying out the suitability assessment DNB will also include both this FTE score and the question of whether the executive director or supervisory board member concerned actually has sufficient time to perform the duties involved. The pension fund should always be able to substantiate its claim that the policymaker or co-policymaker actually has sufficient time to spend on his or her duties in order to carry them out properly, even where the FTE score is 1.0 or lower. This follows from the Suitability Policy Rule.
If the FTE score is 1.1 or higher, DNB expects the pension fund to make express reference to the score in its reasoning and to indicate why the prospective executive director or supervisory board member will nonetheless have sufficient time available to perform the duties of the position to which he or she is to be appointed.
Please note: From 1 July 2014 a pension fund will no longer be able to provide evidence to rebut the presumption of lack of time where there is an FTE score of 1.1 or higher, and the prospective executive director or supervisory board member will therefore be rejected in the suitability assessment. This follows from article 35a of the Decree implementing the Pension Act and Occupational Pension Scheme (Obligatory Membership) Act.