* Please click here for a Dutch translation. *
New Pensions Act entered into force
The New Pensions Act (NPA) entered into force on 1 July 2023. For companies that do not have a pension scheme yet and that introduce a new pension scheme, this means that the pension scheme must immediately comply with the new legal requirements. Please see our previous blogs about the NPA below.
However, pension schemes are already in place in many companies. In this blog we discuss the deadlines for adjusting your existing pension scheme. In particular, we discuss the consultation process between the employer and the employees and their representatives (trade unions and/or works council). This process is completed by drafting the so-called 'transition plan'. The transition plan must determine, among other things, which defined contribution scheme is chosen, which compensations are provided and what the change means for the pension entitlements and pension benefits already accrued.
Time limits for amending existing pension schemes
All existing pension schemes must be amended by 1 January 2028.
In addition to this deadline for adjusting the existing pension schemes, the legislator has included a number of other deadlines (also known as 'milestones') in the law that are important for employers for the consultation process and the drafting of the transition plan in connection with the amendment of the pension scheme. The applicable term depends on the type of pension provider where the amended pension scheme is implemented: pension fund or insurer/PPI.
Pension funds
A distinction is made between two different types of pension funds: (i) industry wide pension funds and (ii) company pension funds and general pension funds.
(i) Industry wide pension fund
If a company/employer is affiliated to a mandatory industry wide pension fund, the pension scheme will be adjusted by the social partners in the sector. In that case, an individual employer does not have to draw up a transition plan itself. This is only different if the employer has its own pension scheme in addition to participation in the industry wide pension fund (think of an excess scheme). Then the term depends on the type of pension provider of this own pension scheme (as set out below).
(ii) Company pension fund and general pension fund
If a company/employer is affiliated with a company pension fund or a general pension fund, the transition plan must be completed and submitted to the pension fund by 1 January 2025 at the latest.
In the event that the employer is unable to reach agreement on the changes with the social partners concerned, they may request mediation from the transition committee which is set up by the Dutch government. In case of a pension scheme placed with a pension fund, the request for mediation must be submitted to the transition committee no later than 1 January 2024. If a binding opinion from the transition committee is required, the request should be made no later than 1 July 2024.
Insurer / PPI
If a company/employer has implemented its pension scheme with an insurer or a premium pension institution/PPI, the transition plan must be completed and submitted to the insurer or PPI by 1 October 2026.
In the case of a pension scheme placed with an insurer/PPI, the request for mediation must be submitted to the transition committee no later than 1 January 2025. If a binding opinion from the transition committee is required, the request should be made no later than 1 July 2025.
Conclusion
Although there is apparently still 4.5 years for the amendment of existing pension schemes, the period for completing the consultation process (from 1 July 2023) is only 1.5 years if the amended pension scheme is implemented with a company pension fund or a general pension fund and 3 years and 3 months if the amended pension scheme is implemented with an insurer/PPI. Moreover, these deadlines are considerably shorter if mediation or binding advice from the transition committee is required.
More information?
If you have any questions about this blog or one of our other blogs about the NPA (see below) or if you have a suggestion for a topic for a blog of ours about the NPA, please let us know.
Our blogs about the NPA
