Changes because of the Future Pensions Act: what does it mean for employers?
The Future Pensions Act (Wtp) took effect from the 1st of July 2023. All pension providers and pension advisers are currently busy with the legal adjustments to pension schemes. By 2028, all pension schemes in the Netherlands must be adapted. Alex Pennink, Practice Leader Pension at Meijers, once again lists the most important changes:
- Age-related, increasing contributions in pension schemes will be prohibited.
- Current employees will be allowed to keep the existing pension scheme with increasing premiums.
- For new employees, there must be a new scheme with equal premiums.
- An equal premium will become the standard under the new law.
- The partner's pension may no longer depend (partly) on the number of years of service.
- From now on, the partner's pension will be expressed as a fixed percentage of the salary.
End date of the pension contract
If you have a pension contract with a fixed end date, it is wise to deal with the statutory changes when the contract is renewed. This way, you will be Wtp-proof and ready for the future right away. For open-ended contracts, you can decide when you want to make the changes.
Avoid procrastination
Currently, some employers tend to postpone the adjustments. People think there may be adjustments to the new Pension Act due to political discussions. In particular, the issue of 'incorporation' is a point of discussion. Boarding-up means that the new (calculation) rules also apply to accrued pensions under the old law. But beware: this issue only affects pension funds and not insurers. So if a change in the law follows at all, it will not have a major impact on insured schemes. Meijers' pension specialists therefore advise against delaying adjustments to insured schemes until the last minute. The fear is that massive postponements will lead to a build-up of adjustment processes. Resulting in implementation problems and delays for insurers and advisers. So start early, especially if you have an open-ended contract.
Employers, act on time!
Our advice is therefore to start early and get in touch with your pension contact at Meijers. The advisory process consists of a number of steps that take time:
- Analysing the current scheme(s).
- Working out the various options.
- Possible consultation with the works council or employee representation.
- Making calculations.
- Quotation processes with insurers.
- Handling the new legal documents.
- Implementing the new scheme(s) in the administration.
- And most importantly: internal communication for your employees.
Any questions?
Would you like to know more about your pension schemes? Meijers will be happy to help you!