The Dutch Pension Federation has called on pension funds to get started with preparations for the Future Pensions Act following improvements in funding levels.

In a statement, the federation noted that the financial position of pension funds had improved further in the second quarter of 2023.

Average funding levels have generally been improving during the first half of 2023 amid rising interest rates and positive investment returns.

The Future Pensions Act came into force in early July 2023, with pension funds having until 1 January 2028 to complete the switch to the new pension system.

The Pension Federation noted that, despite the collapse of the government earlier this month, pension funds assumed that this will not result in a delay of the new legislation.

“The financial position of the pension funds improved again in the second quarter of 2023,” the federation stated.

“As in the first quarter of this year, the current funding ratios show a slight upward trend for many funds. This is due to positive investment returns in combination with higher market interest rates.

“The pension sector is pleased that after years of discussion, the Future Pensions Act is now a fact. In the new system, pensions can move more closely with the state of the economy.

“The sector has now started to implement the new rules in a responsible and careful manner.

“The pension funds assume that the fall of the cabinet will not lead to a delay in the further elaboration of the law in subordinate regulations. In principle, all pension funds must have switched to the new pension system by 1 January 2028 at the latest.”

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