The Future Pensions Act has cleared its final hurdle as the Dutch Senate voted in favour of passing the bill, which will become law on 1 July 2023.

The new law will overhaul the current system in the Netherlands, shifting focus from defined benefit (DB) pensions to defined contribution (DC) pensions, alongside updated communication regulations and rules designed to make the system more sustainable and better suited to the current labour market.

Dutch policymakers have been negotiating the details of the bill for several years, stemming from the 2019 pension agreement, which was also discussed in detail for years prior.

The bill achieved a majority and passed in the House of Representatives in January 2023, before moving on to the Senate.

In the Senate, certain concessions had to be made to achieve a majority, with the most notable compromise being that pension funds would be given until 1 January 2028 to transition to the new system, a year later than initially proposed.

The law change was then able to achieve a majority in the Senate.

Following its passage, Pensions Minister, Carola Schouten, said the Senate voting in favour of the Future Pensions Act was an “important step”.

“With this law, we ensure that our pensions remain properly arranged,” she stated.

Opponents of the new system within the Senate attempted to postpone the bill at the last minute, but were not successful.

Commenting on the bill’s passage, Dutch Federation of Pension Funds chair, Ger Jaarsma, said: “We have been preparing for a long time, but from now on we can really make decisions together with the social partners.

“We, the pension funds of the Netherlands, are pleased with this result, which means that we can start implementation on 1 July.”

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