The new Pensions Act: What changes and what stays the same?

The rules for the pension you accrue through your employer have changed in the Netherlands. But that doesn’t mean everything is different. Here you can read what stays the same and what does change. 

What stays the same?

Much stays the same. You will still receive your State Pension from the government when you reach the State Pension Age. From your retirement date, you will receive a lifelong pension that you have accrued through your employer(s).

The new Pensions Act mainly concerns the pension you accrue through your employer, such as your pension with BeFrank. As a premium pension institution (PPI), we offer a contribution scheme. A contribution scheme already aligns well with the new rules. Below is a brief summary of what stays the same.

Everyone has their own pension pot

With the new Pensions Act, everyone accrues their own pension pot. You already do this at BeFrank, so nothing changes for you. You have a contribution scheme with us. This means that the amount of your pension on the retirement date is not fixed in advance. What you ultimately receive depends, among other things, on how much you contribute to your pension and the return on your investments. You can easily see how your pension is developing on your personal pension page. 

We invest your pension for you

At BeFrank, we invest your pension for you. Your employer chooses a standard type of investment and investment risk in the pension scheme. You can change these investment choices, allowing you to invest in a way that suits you. Read more about investing for your pension, and the choices you have, here. 

Your surviving dependants will receive a surviving dependants’ pension

Your surviving dependants will receive a surviving dependants’ pension. This is a pension benefit that they will receive immediately if you pass away before your retirement date. The surviving dependants’ pension is insured for you as long as you are employed by your employer and you have not yet reached your retirement date. This insurance will lapse as soon as you retire or leave the company.

Your insurance in the event of occupational disability

If you are ill, your employer will continue to pay your pension contribution for the first 2 years. If you have not fully recovered after 2 years, the Employee Insurance Agency (UWV) will assess whether you are partially or fully occupationally disabled. You may receive a state occupational disability benefit (WIA). 

In most pension schemes, you are insured against occupational disability. Your pension contribution will continue to be paid under this insurance as long as you receive WIA benefit. In that case, you will continue to accrue pension and remain insured for the surviving dependants’ pension as you are used to. 

What will change?

As mentioned above, much stays the same. That does not mean that nothing changes. Below you can read the most important changes to the pension schemes with BeFrank.

Contribution percentage for your pension accrual

You pay contributions towards your pension accrual. We calculate these contributions using a percentage. Under the old Pensions Act, the contribution percentage usually depends on your age: the older you are, the higher the percentage. But in some pension schemes, the contribution percentage for all employees may be the same, so it doesn’t matter how old you are.

The new rules are based on the principle that all employees in a pension scheme have the same contribution percentage. The employer determines the contribution percentage.
However, an employer can also choose to keep the age-related contribution percentages in the new pension scheme. This is called the ‘non-retroactive effect’ and may only be offered by an employer to employees who were employed before 1 January 2028. Whatever your employer decides, your employer and BeFrank will notify you if your contribution percentage changes.

Surviving dependants’ pension percentage of your salary

The surviving dependants’ pension is a percentage of your salary, which is set by your employer.
If you leave employment, you will continue to be insured for a surviving dependants’ pension for a standard period of 3 or 6 months. After this time, you can choose whether you want to keep the insurance. However, we can impose additional conditions.

Payment of orphans’ pension until age of 25

If you pass away before the retirement date, your children (if any) will receive an orphan’s pension up to the age of 25.

New additional insurance: supplementary partner’s pension

Your employer may give you the opportunity to insure yourself for a supplementary partner’s pension. This is a new insurance policy. If you pass away during your current period of employment, your partner will receive the supplementary partner’s pension for life.

The Survivor’s Pension Assistance shows what has been arranged for your surviving dependants. As soon as your employer has adjusted the pension scheme to the new rules, you will find your additional choices for the surviving dependants’ pension here.

Allocation of the pension when you pass away

If you pass away before your retirement date, we will distribute your pension pot among the living participants at BeFrank with a similar pension scheme. This is called the ‘life bonus’. This only applies to the pension you accrue under the new Pensions Act. As long as you live and accrue a pension with BeFrank, you will receive part of this bonus in your pension pot each year. The pension you have accrued with BeFrank under the old pension rules will be distributed to your surviving dependants if you pass away before your retirement date.

Pension accrual from the age of 18

Employers are obliged to allow employees to participate in the pension scheme from the age of 18. This is how young employees accrue a pension from the age of 18. 

Pending: withdrawing a maximum of 10% of your pension in a lump sum

The government wants to make it possible for you to withdraw up to 10% of your pension capital on your retirement date in one payment, known as a “lump sum”. At the moment, you don’t have that option. It is not yet known if and when this rule will come into effect.

What exactly will change for you in your new pension scheme

Your employer determines what your new pension scheme will look like. They do this together with a pension adviser and representatives of employees, such as the works council. Your employer and BeFrank will inform you as soon as your employer adjusts the scheme. Make sure to read all the information carefully, so you know exactly what is changing for you.