The Dutch Minister for Social Affairs and Employment, Wouter Koolmees, has confirmed in a letter to parliament that the Future of Pensions Act will come into effect no later than 1 January 2023, a year later than expected.

The reforms have been hit with delays since the collapse of the Dutch government, with the minister's plans to submit the reforms by this summer described as "not realistic".

Despite these delays, the Dutch Pension Federation has emphasised the importance of continuing to strive for the January 2026 implementation date.

It also clarified, however, that there must be sufficient time for careful implementation, arguing that a timely and smooth start to the running of the process between social partners and pension funds is important.

“It is also important that supervisors carry out an integrated assessment, within clear decision periods that are in balance with the time that pension funds have for implementation,” it stated.

In light of this, The Labour Foundation, the Pension Federation, and the Dutch Association of Insurers will be working together to develop guidance to aid all involved parties in the transition to the more modern style pension system.

The Ministry of Social Affairs and Employment will also be working closely on this project, with the online platform expected to be launched in the summer of 2021.

The Pensions Federation emphasised that the transition to a more modern pension system will be “radical, complex and extensive”, with many parties playing a role in the decision-making process.

It also noted that there are pension funds working towards switching to the new system on 1 January 2023, arguing that the legislation and subordinate regulations need to be known “in good time” by 2022.

Indeed, the minister has confirmed in the letter that he expects to be able to send the legislation to the Lower House in early 2022, with the parties involved expected to look into what is need to facilitate the transition from 2023 onwards.

The transition framework (FTK) is also part of the delayed legislation and as such will also be subject to the later date, although it will be no later than 1 January 2023.

The minister also confirmed that the temporary scheme, in which pension funds do not have to make cuts if the funding ratio is above 90 per cent, has been extended by a further year to 2022.

Alongside this news, the Dutch Pension Federation has emphasised the need to implement the pension agreement unchanged, arguing that this will allow workers in the Netherlands to accrue an adequate pension, as well as providing financial protections for their surviving relatives.

It stated: “For the Pension Federation, innovation while preserving the good is paramount.

"The renovation must run smoothly and be completed on time. No load-bearing walls must be broken down and no cosmetic extras added that make the system unnecessarily more complex.

“After all: the simpler a new system, the more efficient the implementation.”

Considering this, it urged the forthcoming cabinet to focus fully on the implementation of the pension agreement and maintaining the ambition level for all participants, warning that any austerity will lead to a “false start” for the new structure.

It also called for the cabinet to provide an understandable and adequate survivor’s pension system, and to organise access for self-employed persons to collective pension accrual that suit them.

The Pension Federation has previously called for substantial changes to the Future Pensions Act amid fears that it may make pension experiments designed to help the self-employed "impossible".

Share Story: