Dutch pension funds will have an additional year to transition to the new pension system after debate in the Senate led to concessions from Pensions Minister, Carola Schouten.

The Dutch Senate has been discussing the Future Pensions Act and is due to vote on its passage on 30 May.

Several senators raised concerns about the amount of time pension funds would have to transition to the new defined contribution (DC) system, with the deadline initially proposed to be 1 January 2027.

In light of the concerns, Schouten agreed to push back the transition deadline to 1 January 2028.

Senators from opposition parties GroenLinks and PvdA called for the one-year extension, while the CDA argued the transition deadline should be delayed to 2030.

These parties make up part of the ‘pension coalition’ that should support the new system to receive a majority in the Senate, which may have played a part in Schouten’s concession.

Furthermore, a government commmissioner will be selected to oversee the transition, following a request from the CDA.

The Future Pensions Act includes a package of new pension rules that aim to lay the foundations for an updated pension system, which will shift focus from defined benefit (DB) to DC style pensions.

It achieved a majority and passed in the House of Representatives in January 2023.

If passed by the Senate, the new law is expected to come into force on 1 July 2023, with pension funds now having under 2028 to switch to the new pension rules.

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