Dutch pension funds, BpfBOUW and Provisum, have agreed their transition plans for the move to the new pension system, with plans to switch to the new system by 1 January 2026.

The Future Pensions Act in the Netherlands became law on 1 July 2024, with schemes 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.

Provisum said its social partners (employers and employees) made agreements about the new pension scheme, and will apply to everyone who accrues, has accrued, or receives a pension from the fund.

Meanwhile, BpfBOUW said it would administer this renewed pension, and the board has accepted the assignment from its social partners (trade unions and employers' organisations).

The board accepted the assignment after an “extensive” review, in which it investigated if the assignment was aligned with its goals and priorities and whether any groups would be negatively impacted by the transition.  

BpfBOUW also considered, as part of the process, how it determines the risk of the investments, whether it can administer the renewed pension, and how it deals with risks.

In addition to this, the accountability body, which represents the interests of participants, pensioners, and employers at BpfBOUW, has given positive advice to the board about the transfer of pensions.

BpfBOUW accountability body chairman, Frits Scheublin, said the body was “satisfied” with the result of the considerations and calculations the board made.

“The interests of the different groups of people at BpfBOUW have been carefully and balanced. This gives us a lot of confidence for the steps that still lie ahead,” he added.

The fund said the next step is the delivery of the implementation plan and the communication plan.

The implementation plan will set out how the fund plans to switch to the renewed pension and how it will be implemented. Meanwhile, the fund said it would work out how to inform members about the communication plan.

The De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) will monitor these plans. After DNB's agreement, BpfBOUW will switch to the new pension rules.

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