Pension agreement: defined contribution as the point of departure
The pension agreement states that the point of departure of the new system is the defined contribution scheme. All pension schemes must be adjusted accordingly. Schemes in a so-called defined benefit agreement (often with pension funds) must be converted into a defined contribution agreement. If you already have a defined contribution scheme, this scheme may be continued for existing employees. However, the age-independent flat contribution must be applied for new employees.
Guaranteed pension benefit vs defined contribution scheme
Current situation: guaranteed pension benefits as the point of departure
The current pension system is based on a pension scheme with guaranteed pension benefits as the point of departure. This means that the same percentage of the salary is paid in respect of each employee, irrespective of age. By paying this contribution, the employee is entitled to a pension benefit. The level of the benefit depends on the level of the salary.
New situation: defined contribution scheme as the point of departure
Under the new pension system, the point of departure is a defined contribution scheme with a fixed contribution percentage of the pension base. In this pension scheme, a fixed contribution percentage is applied that is the same for both young and old employees. As a result, a young employee can ultimately purchase more pension than an old employee for the same pension contribution. The amount of the pension accrual decreases as an employee gets older. This is also referred to as degressive pension accrual.
Maximum contribution rate
The maximum contribution rate that can be applied by the employer has not yet been definitively laid down in the tax [MA2] legislation. However, it is expected that this will be between 30-33%. Naturally, a lower percentage than the maximum permissible for tax purposes is allowed.