The transition to the new Pensions Act
By 1 January 2028, all pension schemes in the Netherlands must comply with the Dutch Future of Pensions Act (Wet toekomst pensioenen, Wtp). Much has been written about this in the media. However, not all information is related to BeFrank’s pension schemes. On this page we explain what is important for you to know as a participant with BeFrank.
Various pension administrators and pension schemes
We have various types of pension administrators in the Netherlands:
- Pension funds
- Pension insurers
- Premium pension institutions (like BeFrank)
How does a participant accrue a pension with a pension fund?
- Each month, the pension contribution for the participant is invested in one large joint pension pot. The pension fund pays the pension benefits from this joint pension pot.
- A pension fund has a benefit scheme. This means that the benefit is more or less fixed.
How does a participant accrue a pension with a pension insurer?
- Each month, the pension contribution is paid into the participant’s own pension pot.
- A pension insurer has several schemes. A benefit scheme where the benefit is fixed or a contribution scheme where the benefit is not fixed in advance.
How does a participant accrue a pension with a premium pension institution?
- Each month, the pension contribution is paid into the participant’s own pension pot.
- A premium pension institution has a contribution scheme in which the pension benefit is not fixed in advance.
BeFrank is a premium pension institution and offers a contribution scheme. Under the new Pensions Act, all pension administrators will adopt a contribution scheme. BeFrank’s pension schemes are already well aligned with the new rules. As a result, the transition to a new pension scheme for BeFrank participants is less drastic.
A new pension scheme with BeFrank
Although the transition is less drastic, the new Pensions Act does bring about changes. We have listed the most important changes here. What exactly changes for you depends on the choices made by your employer. Your employer makes these choices together with a pension advisor and employee representatives, such as the works council. Together they determine what your new pension scheme will look like.
Under the new pension scheme, your employer can choose to keep the age-related contribution percentages. Your contribution percentage will continue to increase with your age. As a result, you will pay the same pension contribution as in your previous 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.
Does your employer opt for a contribution percentage that is the same for all employees, regardless of their age? In that case, your pension accrual can improve, but also decrease. If your pension is lower, your employer can compensate you for this with extra salary. In that case, you have the option of (partially) contributing this additional salary to your pension. This means that you will continue to contribute the same amount in pension contribution as in your previous scheme.
How you will be kept informed of your new pension scheme
Your employer has until 1 January 2028 to adjust the pension scheme to the new rules. Your employer is obliged to inform you of any changes to your pension scheme and of any consequences for you. BeFrank also informs you. Read more here about how and when we will communicate with you during the transition to the new Pensions Act.
If you want personal advice
f you want personal advice on the choices you can make if your pension scheme is adjusted, please consult a financial advisor. Bear in mind that this advisor will charge costs.