The Dutch pensions sector is “well on track” with its preparations to switch to the new pension system under the Future Pensions Act (WTP), according to a Pension Federation position paper sent to the House of Representatives.

However, a survey by Aon Netherlands found that employers were “still taking it easy” with their preparations for WTP, with 45 per cent having done little or no preparation for the transition.

In its paper to the House of Representatives, the Pension Federation said that while the transition was a major operation, all Dutch pension funds were doing everything they can to comply with the deadlines.

It indicated that pension funds were well on track with the implementation of WTP and called for “peace and space” to implement the new legislation within the deadlines.

“Predictable and consistent legislation is very important for the sector to get this job done,” the Pension Federation added.

Meanwhile, Aon Netherlands said that its study found that a large majority of companies indicated that they were sufficiently aware of the changes to pension legislation.

However, 45 per cent of employers had done little to no preparation for the transition.

The consultancy stated it therefore appeared that employers were putting off preparations, saying that companies dreaded the complexity the new law and may think they still have more than enough time to meet the 1 January 2028 deadline.

“Most employers understand what the necessary changes entail, but at the same time have not yet taken action,” commented Aon Netherlands Wealth Solutions CEO, Frank Driessen.

“Employers would do well to start preparing now to have everything arranged on time.”

When asked about possible compensation for certain groups of employees, because everyone will soon pay the same premium, most employers were choosing to offer compensation through a pension or combination of pension and salary, but as many as 25 per cent of employers were not offering compensation or had not made a decision yet.

The survey also found that 84 per cent of employers felt they needed an adviser to assist with the transition.

“Not only because of the complexity, but also because of the stricter communication regulations,” Driessen noted.

“Under the WTP, the employer is obliged to 'guide the participants in making the choices'. This goes much further than just 'informing' as has been the case until now.

“Good communication with employees is therefore essential, during and after the transition. We advocate that participants are given the right to a personal meeting to be informed about their personal pension situation.”

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