September 24, 2023

1. Why does the pension system in the Netherlands need to change?

Many employees build up pension in a benefit scheme: a scheme in which the amount of the pension is determined in advance with a certain degree of certainty. An example is an average salary scheme. In recent years, this certainty has been limited: pensions did not (always) increase with inflation and were sometimes even reduced. The purchasing power of these pensions therefore decreased. This has resulted in less and less confidence in the pension system.

The system also does not sufficiently reflect developments in the labour market: people are changing jobs more often, there are more flexible workers and self-employed persons. In addition, in the current system, pensions for older employees are more expensive than for younger employees. Finally, it is not clear to many people how they are building up pensions. The new system must ensure a future-proof pension system that is better aligned with developments in society and the labour market and makes pensions more transparent and personal.

2. Who will be affected by the new law?

The new pension system will soon apply to everyone who falls under a Dutch pension scheme: it is a national system change. Based on the new law, all companies in the Netherlands must adjust their pension schemes. This has consequences for everyone who is currently a participant in a pension scheme. This includes all employees, but also those who have already retired or former colleagues who have not yet retired (the so-called sleepers).

3. What does this mean for our pension scheme? In the new pension scheme, no pension amount is promised anymore. There will be a new system that only has one type of pension scheme: the premium scheme. In such a scheme, each participant builds up a pension capital in their own pot. Only a premium is promised. This premium will be invested. The pension fund does this for you. Each employee receives the same premium percentage and gets their own pension capital.

4. How does a personal pension pot work? As long as you work, a premium is paid into your 'personal pension pot' every month. These premiums are then (collectively) invested by the pension fund. The total of all premiums paid and the returns made on them ultimately form the pension capital. You then use the pension capital to purchase a lifelong pension on your retirement date, possibly in combination with a survivor's pension. The higher your capital, the higher your monthly pension will be. If you die before retirement, your accrued pension capital will be forfeited to the pension fund. However, your survivors, if you have any, will receive a survivor's pension. This is arranged separately via an 'insurance' within the pension fund.

5. When will I notice anything of this? We are currently in discussions with the employer and Works Council about the new pension scheme. If there is a new scheme, we will inform you about it. It will then take some time before the new scheme is implemented. We expect the new scheme to be introduced on 1 January 2026. Of course, you will then receive extensive information about what this exactly means for you.