IFRS Pension

Floreijn Consultancy is a specialist in the field of Dutch collective pension plans for the larger companies in the Netherlands. We have a lot of experience with retrieving the DC qualification for a DB average pay plan. Whether or not it is possible, depends on a few specific factors, like for example the indexation policies within the company. In an intake interview, we discuss the different properties of the pension plan. After that, we can clearly state if it will be possible for your company to retrieve a DC qualification.

We make clear if a DC classification in the context of IFRS is possible for companies with an average pay plan. Advantages of a DC qualification for your company are:

  • No more changes in the Profit and Loss Statement because of adjustments of assumptions by your actuary;
  • No more yearly calculations by your actuary;
  • Only the premiums that have to be actually paid to your insurance company run through your Profit and Loss Statement;
  • No more fluctuation in the equity as a result of the pension plan.

With this, Floreijn offers you:

Financial Stability

  • Only the premiums that have to be actually paid to your insurance company run through your Profit and Loss Statement;
  • Pension plans no longer have an effect of the equity.


  • No more changes in the Profit and Loss Statement because of adjustments of assumptions by your actuary;
  • No more high bills from your actuary.

For whom?
Every company that draws up their annual accounts by means of the reporting rules of IFRS, with a DB qualification on their average pay plan.

A lot of accountant offices make good use of our expertise and experiences. In commission of their clients, they employ us to advice in the areas of Dutch pensions and IFRS. Are you operative at an accountant office and do you need a strong partner that will help your clients?

Contact us for more information or for an appointment.

  • More about IFRS

    Another pace for DB policies
    For companies that report by means of IFRS rules, there is another pace for DB policies regarding the financial cost than for DC policies. The different pace is determined by calculating the factual expenses, or in other words the final pension payments, in proportion to the time of labour. For the determination of the pension payments, an assessment of all future developments is made. This assessment is made on the basis of the financial economic reality on the moment of reporting. Examples of future developments are salary or state-pension offset raises, indexations and resignation.

    It is about future pension payments and that is why for the interest, a connection with the financing environment of the company is sought. The applied interest is being deducted from the return on first-rate company obligations. This leads to a pension charges that is higher or lower than the owed premium that is applicable to the current form of financing. Yearly, the actuary makes various calculation for this that have a direct influence on the P&L.

    Obligation limited
    There are many policies for which the obligation of the employer is limited to the paying of the agreed premium. Then, there are no future costs or assets that run from the payment obligation of that year. The owed premium is taken on as a charge in the Profit and Loss Statement. Furthermore, a balance utility forms for the premium that is owed but not yet paid on the balance date.

    In general, this also applies to a policy according to the available premium principle (Defined Contribution Plan). But also an average pay plan can, of the employer’s risk on the future costs/assets is eliminated, be classified as a Defined Contribution.

    Opposite interests
    A lot of CFOs are not aware of the possibilities to retrieve a DC qualification for their DB average pay plan. This partly has to do with the fact that the actuarial office, that produces a yearly calculation for IFRS, also is the advisor of the pension plans themselves. This means that factually, there is an opposite interest for these businesses. With the insurance companies where the pension plans were arranged, there is often a lack of knowledge to discuss such matter with you.

Our services & solutions

Pension Auditing

We offer a complete recalculation and inspection of the pension agreements

Pension Consultancy

We make sure you have grip on your pension schemes by presenting it in an understandable way

Pension Management

You can outsource your pension management to us. Or you can use our service as a ‘double check principle’

Pension Communication

You fulfill your duty of care and regulatory requirements, with our complete solution.

Health Care - & Disability Plans

We realize purchasing benefits, effectivity of claim processing & reintegration