Everything about the new Pensions Act
Last update: 6 September 2024
On 1 July 2023, the Future of Pensions Act took effect. The new pension legislation is more in keeping with the current times. And ensures that everyone in the Netherlands gets a good pension, including generations coming after us. Employers must have adjusted their pension scheme by 1 January 2028 at the latest. On this page, we explain the most important changes.
In brief: what will change?
In the new pensions system, everyone accrues their own pension. Good to know that you already do that at BeFrank. Yet some things are also changing. In the video, we explain what is changing.
Same premium percentage for everyone
You pay a premium for the accrual of your pension. We calculate this premium using a percentage. Everyone gets the same premium percentage in the new pensions system, from young to old. We will then no longer calculate the premium percentages on the basis of your age.
When switching to a new pension scheme, your employer may choose not to adjust the current premium percentages. If this is the case, this will only apply to employees who are still employed before 1 January 2028.
The surviving dependants’ pension changes
Under the new pensions system, the surviving dependants’ pension will be simpler. Surviving dependants’ pension is the pension that is paid to your dependants: your partner and any child(ren), immediately after you pass away. What will the surviving dependants’ pension look like?
- We calculate the surviving dependants’ pension using a fixed percentage of your salary, regardless of how long you have been employed. We pay the orphan’s pension up to a fixed final age of 25 years.
- Your employer may offer you the option of taking out insurance for additional surviving dependants’ pension.
- What if you leave your job? Then you remain insured for the surviving dependants’ pension for 3 or 6 months as standard. After this period, you decide for yourself whether you want to keep the insurance. We may impose additional conditions on that, though.
Want to know what has been arranged for your surviving dependants? Then take a look at the Survivor’s Pension Assistance. Once your employer has switched to a new pension scheme, you will find the additional choices concerning the surviving dependants’ pension.
Distribution of pension capital in the event of passing away
In the event of passing away, the distribution of the pension capital changes. We will then distribute the pension capital accrued under the new pension scheme among all BeFrank participants with a similar scheme. Restitution will continue to apply to pension capital accrued for this purpose. Restitution means that the pension capital is used for the surviving dependants’ pension in the event of death.
Cashing out up to a maximum of 10% of the retirement pension as a lump sum (expected from 2025)
Under certain conditions, employees are entitled to have a maximum of 10% of the retirement pension paid out on their retirement date. We call this a ‘lump sum’. The effective date of the ‘lump sum’ has already been postponed a few times. It is now expected to take effect no earlier than 1 July 2025.
Compulsory pension accrual from the age of 18
Previously, young people usually accrued pension from the age of 21. Since 1 January 2024 this has been adjusted. Now, everyone accrues compulsory pension from the age of 18.
The transition to a new pension scheme
Your employer switches to a new pension scheme that complies with the new pension legislation. This is possible until 1 January 2028. Will you be worse off with the new pension scheme? Then your employer can compensate you for this. Your employer lays down the arrangements for compensation in a transition plan.
Your employer determines the scheme
Exactly what will change for you depends on the choices your employer makes. You will hear more about this when your employer adjusts the pension scheme. Your employer will do this in consultation with the Works council or Employee participation council and with a pension advisor.
Want to know the current state of your pension?
Then check your personal pension page. Or download the free app ‘Mijn Pensioen’ to check your personal pension information 24/7 on your smart phone! Any questions? Please do not hesitate to contact us. We will be happy to help!