The bill was opened for online public consultation in late 2020. It received so many responses that extra time is needed to work it out in detail. The new pension reform law will now take effect at the earliest in 2023. The transition period is being extended by a year, to 1 January 2027, to allow for a careful transition.
Information platform
To help the bill be worked out quickly, a joint information platform will, among other things, be made available in the summer for the social partners involved, youth and senior citizens’ organisations, pension funds, insurers, implementing bodies and regulators. The Labour Foundation, the Pension Federation and the Association of Insurers will use this platform to provide tailored information to support the transition to a different pension contract.
Future of Pensions Act
The Future of Pensions Act bill contains a number of changes to the pension system. The concept is based on the pension agreement concluded in 2020.
A new way of accruing pension is being introduced. Of the three contract types currently distinguished under the Pensions Act – the benefit agreement, the capital agreement, and the premium agreement – only the last will remain after the transition phase. In addition, the so-called uniform contribution system is being abolished. The bill further provides that, after the transition period, pension can only be accrued under a premium scheme with an age-independent (flat) contribution rate.
For the letter to parliament of 10 May 2021, click here (in Dutch).
Questions about the above? Please contact one of Sørensen Advocaten’s employment lawyers. Call: +31 (0)10-2492444
