The Future Pensions Act in the Netherlands became law on Saturday 1 July, with schemes now on a countdown to be ready to transition to the new system by 2028.

Under the reforms, the pension system in the Netherlands will shift focus from defined benefit (DB) pensions to defined contribution (DC) pensions.

Pension funds in the Netherlands need to decide on what their new scheme will look like, its contribution levels, whether accrued pensions will be transferred to the new scheme, or whether they will transition to the new system at all or wind up and consolidate.

Dutch policymakers had been negotiating the details of the Future Pensions Act for several years and finally came to an agreement earlier this year.

Initially, the deadline for pension funds to transition to the new system was set as 1 January 2027, but this was moved back to 1 January 2028 in the latter stages of discussions.

While the deadline has been set at 2028, some pension funds plan to transition to the new system earlier than this.

For example, PMT has announced that it wants to have transitioned by 1 January 2026, while APG is aiming for the original transition date of 1 January 2027.

Other aspects of the reforms include updated communication regulations, and rules designed to make the system more sustainable and better suited to the current labour market.

The bill achieved a majority and passed in the House of Representatives in January 2023, before moving on to the Senate and passing that house of parliament at the end of May.

Pension funds have warned that there is a lot of work to be done behind the scenes to get ready for the full transition in five years’ time, stating that pension funds and other organisations involved need to begin work as soon as possible.

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