The terms and deadlines of the Future Pensions Act at a glance

All pension schemes in the Netherlands will be adjusted

The Future of Pensions Act contains the largest change to the pension system since the 1950s. The aim of this bill is a more transparent and personal pension system, according to the central government. As a result of the Future Pensions Act, every pension scheme in the Netherlands needs to be adjusted. What you need to arrange as an employer and more importantly before when, can be read on the basis of the timeline below with deadlines regarding practical matters. First of all, the three phases in the transition period are explained. Subsequently, the amendment of the pension agreement is discussed for each type of pension administrator. This will be followed by zooming in on the transition plan and communication plan.

Transitional law

In the transition to the new pension system, the employer with an average pay or defined contribution scheme can choose to make use of the transitional law. This means that existing employees may maintain an increasing graduated scale, while new employees must join the flat contribution scheme. This transitional law does not apply to employers with an average pay scheme with a general or company pension fund. These employers will have to make an important choice this year whether or not to make use of the transitional law by switching to a defined contribution scheme with an increasing graduated scale.

Three identified phases in the transition period

Within the transition period, three phases have been identified, namely the employment conditions phase, the transfer to the pension provider and the implementation phase. See the figure below for a clear representation of these three phases. It is important to mention that these three phases are leading, but not (yet) legally enforceable. However, 1 January 2027 is a hard deadline: the ultimate transition moment. On 1 January 2027, all pension schemes in the Netherlands will be deemed to have switched to the new system. The pension schemes that have not been adapted to the new rules at that time are confronted with negative (fiscal) consequences.

The amendment of the pension agreement per type of pension provider

Depending on which type of pension provider applies to you, the timeline looks different. Despite the fact that the differences are small, the action points for each pension provider have been listed:

• General pension fund (APF), company pension fund (OPF) and sectoral pension fund (BPF), see the figure above.
  • The employer will send the amended pension agreement and the transition plan to the pension fund by 1 January 2025 at the latest. These are the final terms and conditions of employment, if necessary with the help of a transition committee. At this stage, the employer must also consult with interested parties and reach an agreement. The interested parties include the sectoral pension fund, the works council, the trade unions and/or the employees.
  • The pension fund must submit the implementation plan and communication plan to the supervisory authorities (DNB and AFM) by 1 July 2025 at the latest.
    
    
• Pension institution contribution (PPI) or insurer:
  • The employer will send the amended agreements and their recording in the transition plan to the PPI or the insurer by 1 October 2026 at the latest. The starting point for this change is that the employment conditions consultation must be completed before 1 October 2026. The employer must therefore consult with interested parties in the preceding period and reach an agreement. Interested parties include the works council, trade unions and/or employees.
  • The PPI or insurer must submit the implementation plan to the regulator by 1 October 2026 at the latest. The reason for the shortened implementation period is because the product has already been developed, in contrast to the customisation of pension funds.

Transition plan and implementation plan

In addition to drawing up the transition plan, there is also an obligation to draw up an implementation plan. The pension funds, insurers or PPIs must present the implementation plan, including a mandatory communication plan, to the regulator by 1 July 2025 or 1 October 2026 at the latest. In the communication plan, the pension administrator sets out how (former) participants, partners and pensioners will be informed. In any case, they must be informed about the consequences of the amendment to the pension agreement and the way in which accrued pension entitlements and pension rights are dealt with. Employers who make use of the transitional law are not obliged to draw up a transition plan. A consideration for an employer may be to opt for this transitional law in order to avoid having to comply with such obligations.

Concluding

After the new legislation comes into effect, employers have until 1 January 2027 to adjust the current pension scheme. The consultations to reach an agreement are intensive and time-consuming. Our motto is to start this transition on time. As a result of the change in legislation, a total of around 50 000 insured schemes will have to be transferred to the new scheme. Postponing the moment of change in the year 2026 could cause a lack of capacity at, for example, the Dutch Central Bank, pension administrators, actuaries and advisors. To get ahead of this problem, it is wise to map out the effects of the new pension legislation in advance. Would you like to know more about how you can best go about this? Deloitte is happy to support employers in the possibilities of a new pension scheme and what the best time is to switch to the new pension system. Want to know more? Please feel free to contact us.

This article was written by Richard van Marwijk and Sanne Go.