The Wet toekomst pensioenen
The Wet toekomst pensioenen (Wtp) entered into effect on 1 July 2023. The new pension rules also apply to you as an employer. The transition to the revamped pension system is a complex process. During this process, you need to make important choices for your employees’ pension schemes, so be sure to seek good advice from your pension adviser.
What will change with the Wet toekomst pensioenen?
The following will change
- Pension accrual in new pension schemes as of 1 July 2023 will be subject to an age-independent contribution rate.
- The survivor’s pension is calculated on current salary and no longer based on years of service.
- As of 1 January 2024, the admission age for all pension schemes will be 18.
- Employees who become unemployed or disabled for work, can voluntarily continue their partner's and orphan's pension insurance. This is possible for a maximum period of 15 years.
The following will not change
- Centraal Beheer PPI’s pension schemes are defined contribution schemes.
- We will continue to invest individually for the participant, who will still be able to choose between multiple Lifecycles.
Why is there a new pension system?
Our society is changing. We are getting older and older and are changing jobs more often. The government, trade unions, employers’ organisations and pension administrators see that the current rules are no longer well suited to the times. That is why new pension rules are needed.
Timeline
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1 July 2023
The new Wet toekomst pensioenen enters into effect
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1 July 2023 - 1 Januay 2028
The transition period. At some point during this period, you must switch to a new pension scheme. You may decide for yourself when to adjust the pension scheme and what the pension scheme will look like.
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1 January 2028
All pension schemes must comply with the new rules of the Wet toekomst pensioenen
When should you adjust your pension scheme?
The transition period until 1 January 2028 seems long, but really it is not. You have to make several choices when setting up the new pension scheme.
The pension scheme is an important condition of employment. When making changes to the pension scheme, you will also need to involve the works council or employee representative body and employees in the process.
Want to know more?
Visit ‘werkenaanonspensioen’, (working on our pension), a dedicated website of the Ministry of Social Affairs and Employment. There you can read more about the revamped pension system.
You can already request for a quotation for pension schemes under the Wet toekomst pensioenen
We can already issue a quotation for a new pension scheme that takes into account the principles of the Wet toekomst pensioenen.
You decide when your pension scheme changes
And what it will look like. One thing is certain: by 1 January 2028, all pension schemes must comply with the new rules.
You can discuss the choices and options with your pension adviser or direct your questions to your Centraal Beheer PPI account manager.
What else will change?
Withdraw pension capital at once
The option to withdraw a maximum of 10% of the accrued old-age pension capital on the retirement date has been postponed again. It is still unclear when this arrangement will come into effect
Assisting participants with pension choices
The Uniform Pension Statement and Pension 1-2-3 will be dropped. The obligation to provide participants with a pension statement remains. Pension administrators are free to decide the way in which they do so.
Also, as a pension administrator, we need to better assist participants in making choices, which is also referred to as “choice guidance”. This should encourage participants to take action.
Frequently asked questions
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Only one type of scheme left: the “defined contribution scheme”
The defined contribution scheme is considered the standard under the Wet toekomst pensioenen. At Centraal Beheer PPI, we only administer defined contribution schemes.
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Age-independent contribution rate
With the advent of the Wet toekomst pensioenen, a “flat” contribution rate is the starting point for pension accrual. The contribution rate will be age-independent and will serve as the guide for pension accrual.
Existing schemes may continue under certain conditions. Employees may choose to continue the existing age-dependent graduated scale or to move to an age-independent contribution rate.
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Amount of the survivor’s pension
The survivor’s pension will be calculated on current salary, without taking into account future old-age pension, and will no longer be based on years of service. This will prevent a gap in survivor’s coverage when changing jobs. During active service, the partner’s pension is up to 50% of the salary (orphan’s pension 20%, which is doubled for full orphans).
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Standard partner definition for all pension administrators
To avoid the situation in which the partner does have coverage in one plan and, when changing jobs for example, does not have coverage in another plan, the definition of partner will be unified. This essentially concerns married persons, registered partners, partners with notarised cohabitation contracts and cohabitants who have been living together for at least six months.
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Standardisation of orphan’s pension
The orphan’s pension is a temporary benefit. The orphan’s pension benefit will be adjusted to terminate at the fixed age of 25.
It means that for employees in service at the time the revamped pension system enters into force, the rising contribution rate may continue to apply – even beyond 2028. For these employees, there is no need for a transition to a flat contribution rate. A flat contribution rate does need to be applied for future employees, i.e. those entering service after the transition to the revamped pension system.
If you, for all of your employees, switch to the revamped pension system that features a flat contribution rate – i.e. do not utilise the non-retroactive effect – this leads to a compensation issue.
The Wet toekomst pensioenen stipulates that groups of employees who are adversely affected by the transition to the revamped pension system must be compensated adequately and on a cost-neutral basis. It is expected that this will mainly concern the group of workers in the 40-to-55 age group.
Compensation is based on the premise that pension funds are intended for pension accrual and therefore takes place through the allocation of additional pension entitlements. In addition, compensation should be cost-neutral. You can provide compensation in two ways:
- By granting additional pension entitlements
- By granting additional salary
As pension administrator, we must guide participants in making choices within the pension scheme. According to the Financial Supervision Act, guidance involves more than communication and the provision of information, but less than advice.
We will inform your employees as soon as you adjust the pension scheme. Naturally, we will do this in consultation with you.