Artikel Lockton Global - Nieuwe pensioenwet in Nederland
Collega's Hans van Poppel en Debora Ottink hebben meegewerkt aan een artikel voor Lockton Global News. In dit artikel wordt toegelicht hoe de Wet toekomst pensioenen (Wtp) tot stand is gekomen, welke veranderingen deze wet met zich meebrengt, hoe de tijdlijn eruit ziet en hoe werkgevers ervoor kunnen zorgen dat zij op tijd voldoen aan de nieuwe wetgeving. Benieuwd? U vind het artikel hieronder.
The Netherlands Reforms Its Pension System
PUBLISHED ON MAY 6, 2024BY LOCKTON GLOBAL COMPLIANCE
The Netherlands has embarked on sweeping pension reform that will affect most employer-sponsored and industry-wide pension plans and require significant effort from employers, employee representatives, pension providers, and asset managers over the next several years to amend schemes by the 1 January 2028 deadline. Employers should begin their transition planning now.
The Future of Pensions Act (Wet toekomst pensioenen – WTP), which came into force 1 July 2023, implements reforms of the Dutch supplementary pension system agreed upon between employers, employees, and the government in 2019. The WTP introduces important changes, notably that occupational pension schemes be provided only on a defined contribution (DC) rather than a defined benefit (DB) basis and that they use flat-rate contributions rather than the age-related contributions common in exiting plans. A transition period lasting until 1 January 2028 applies for employers and pension providers to implement the changes in consultation with the employees and their representatives.
Background
Retirement benefits are provided through state pension insurance (AOW) and administered by the Social Insurance Bank. The state pension is a pay-as-you-go system, with retirement benefits paid to pensioners at retirement age linked to life expectancy. The AOW retirement age increased to age 67 in 2024 and will further increase to age 67 and three months in 2028.
Industry-wide or employer-sponsored occupational pension schemes cover approximately 90% of employees in the Netherlands. The schemes are typically administered through pension funds, as well as by pension insurers and premium pension institutions (Premie pensioeninstellingen – PPIs). From 1 January 2028, defined benefit accruals will no longer be permitted.
Key details
The WTP introduces the following changes:
Defined contribution requirement
All occupational pension accruals will be contribution-based. Final pay and career average DB schemes can no longer be agreed between employer and employee. Companies with an existing DB scheme have until 1 January 2028 to change the scheme to comply with the new pension legislation. Three types of DC pension schemes will be allowed: 1) the solidarity contribution scheme, 2) the flexible contribution scheme, and the 3) contribution-benefit scheme.
- The solidarity contribution schemewill have a single collective investment policy covering, at a minimum, excess returns for active, former, and future scheme members. Financial gain and loss distribution are made in accordance with a predefined allocation rule by the pension fund. In a nutshell, the allocation rules aim to deliver an age-related allocation of excess returns, which leads to a decrease in volatility and risk as members age. Pension accruals are based on collective risk-sharing between employees. A solidarity reserve is required.
- The investment policy for the flexible contribution schemeis based on a mix of investments that varies by age cohort (e.g., individual life cycle). Some pension schemes, depending on their design, may allow scheme members to choose their investment portfolio. The pension accrual phase and the benefit payment phase are separate. The accrued capital may be converted upon retirement into either a fixed or variable lifetime pension benefit.
- The contribution-benefit schemeis only available through pension insurers and PPIs. Participants can use the accrued capital and/or contributions to purchase guaranteed-fixed or partially-fixed lifetime pension benefits as early as 15 years before AOW retirement age, transferring a portion of the risk to the pension insurer/PPI.
In all schemes, members may choose to take up to a maximum of 10% of the total value....