The Dutch pension fund for the construction industry, BpfBOUW, has successfully transitioned to the new pension system and, with a 141 per cent funding ratio as at 31 December 2025, can distribute a one-off surplus.

BpfBouw chair, Leon Ceelen, noted that the switch was the effort of years of hard work and “it's not as if a big switch was flipped at midnight that night. The transition is happening in phases”.

The fund said that the transition was a huge, complex task, and that over the past few months and years there had been many consultations with employer and employee organisations, as well as other stakeholders.

BpfBouw’s approach was assessed by the Dutch Central Bank and the Financial Markets Authority, and new insights emerged regularly as it worked towards the new rules.

“And we had to take all parties into account. Whenever changes were made, we sat down together again,” Ceelen said.

He also noted that he was pleased that the employers' and employees' organisations had retained much of the old pension scheme in the plan, which mainly concerns collectivity and solidarity.

"The bottom line is that you continue to share risks, even if someone becomes incapacitated for work or dies," he said.

Ceelen said that he saw improvements as a result of the new rules. For instance, under the old scheme, there was a subsidisation from young to old.

Under the old scheme, people of all ages, together with their employer, paid the same contribution percentage, while for the new scheme young people's contributions can grow in value for a relatively long time.

“Under the new rules, everyone has their own pension capital, also known as a pension pot. What participants set aside for their pension now goes into their own pension pot. This means that participants who contributed to the elderly under the old scheme in their younger years can no longer make use of this scheme. They will receive compensation for this,” the fund explained.

Looking ahead, Ceelen believed that February will be a "happy month" for pensioners, as it will be clear how the transition will work out. Additionally, he said that, in February, pensioners will receive the increased pension and the back payment for January.

Ceelen went on to explain that the amount pensioners receive in March will remain the same for the rest of the year, and the fact that pensions will vary in the first three months of 2026 was due to the changes.

In January 2026, pensioners received their pensions calculated under the old rules. However, the amounts varied due to new tax regulations and the inclusion of a 12th instalment of holiday pay.

Previously, pensioners received holiday pay once a year in May, but under the new rules, pensioners now receive a portion of their holiday pay in their monthly benefit.

Next year, the fund said that monthly pensions could change again, and benefits could increase or fall, as under the new rules, pensions and pension funds move with the economy.

“This applies not only to old-age pensions, but also to disability and survivors' pensions. Unrest in world politics, for example, can lead to lower investment returns. But we have a buffer in place to keep pensions as stable as possible,” Ceelen said.

Overall, Ceelen said he is satisfied with the transition and relieved as “everything went as it should”.

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