How to make your pension scheme Wtp‑proof

Five common barriers to transitioning to the Wtp

1. I still have plenty of time!
2. My adviser will let me know when action is needed
3. It’s expensive
4. Pensions are not my priority
5. It’s too complicated

So how should you proceed? Follow this step‑by‑step plan:

1. Engage your adviser
2. Define your pension ambitions
3. Involve your employees
4. Make key decisions
5. Ask the Works Council and your employees for consent
6. Start the implementation process
7. Communicate and inform

Congratulations! You’ve made the transition.

In theory, you do indeed still have some time—until the end of December 2027. But time flies—and converting your existing pension scheme to the new legislation is not something you can do on the side. It involves a change to employment terms and conditions. Your employees, and in some cases social partners, must agree to this.

You will also need to make important decisions—for example about the level of the partner’s pension or compensation for groups who may be worse off. These are not decisions to be rushed. Starting early helps you avoid unnecessary stress and hasty choices.

A good pension adviser won’t leave you to your own devices. However, your adviser has other clients too. It is therefore wise to be proactive. Schedule time in your adviser’s diary now so you don’t end up at the back of the queue later.

It’s true that the transition is not free. For example, you may need to compensate employees who are worse off under the new system so they remain at a comparable level. On the other hand, you will have to make the transition eventually anyway.

For many people, pensions feel like a distant concern. But that doesn’t mean they are unimportant. In fact, research shows that many employees consider pensions one of the most important employment benefits.

The Wtp makes it even more important to involve employees in their pension. They will build up their own pension capital and have more freedom of choice—for example regarding investment risk and sometimes the sustainability of investments.

We can’t deny it: converting your pension scheme requires time and attention. As an organisation, you must make several key decisions that affect your employees’ financial future.

The good news: you don’t have to do it alone. If you contact your adviser in time, they can guide you. Your pension provider is also ready to help—for example with tools that give an indication of the impact of the Wtp.

Keep it manageable by working step by step.

Start by contacting your pension adviser. They are familiar with the rules and can explain everything. They also know your organisation and employees, and can clarify your current pension scheme and available options. For example: one scheme for all employees, or different schemes for existing and new employees.

The transition is a good moment to review your pension scheme. Does it still align with your vision of good employment practices? Has your workforce changed? What do you expect in the future? Together with your adviser, map out your current pension costs and decide whether to maintain or adjust your pension budget.

Changes to a pension scheme affect employees. Involve them early. Engage with the Works Council and explain why a smooth transition is necessary. Agree clearly on who is involved and when. Setting up a core team can help maintain oversight.

The choices you face depend on where your scheme is currently arranged: a pension fund, insurer or premium pension institution (PPI).

If your scheme has age‑dependent contributions, older employees currently contribute a higher percentage. Under the new system, a flat contribution rate applies regardless of age.

You may also opt for transitional arrangements, allowing existing employees to remain on the old structure while new employees receive a flat contribution. Alternatively, you can compensate employees who would otherwise be disadvantaged.

Other key decisions include:

• The level of employee contributions
• The design of the partner’s pension and orphan’s pension
  • The partner’s pension becomes a percentage of pensionable salary (up to 50%)
  • The orphan’s pension is up to 20% of salary

Discuss your decisions with the Works Council. Employees must consent to changes in employment terms. If you choose a flat contribution, you are legally required to draw up a transition plan explaining your choices.

Your pension administrator will implement the new scheme in their systems. As an employer, you will get access to an employer portal, and employees to their personal pension environment.

Congratulations—you’ve transitioned to the Wtp! Keep employees engaged by organising workshops or webinars. As an employer, you are legally required to communicate about pension matters. Employees also appreciate support when making pension decisions.