Dutch pension funds are “pleased” with the Future Pensions Act being passed by the Senate and becoming law on 1 July 2023, Dutch Federation of Pension Funds chair, Ger Jaarsma, has said.

Reacting to the news that the bill has been passed, Jaarsma noted that Dutch pension funds have been preparing for a long time.

“From now on we can really make decisions together with the social partners,” he continued.

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

Jaarsma stated that pension funds are up to the task, but that there is a lot of work ahead.

During discussions in the Senate, it was agreed that pension funds would have until 1 January 2028 to transition to the new system, rather than the initially proposed date of 1 January 2027.

“Small and large funds and their implementing organisations are tackling this challenge together,” he added.

“One thing is certain: When we are ready in 2028, the Netherlands will have a pension that is ready for the future. A pension that can also grow better than now with rising prices.

“We are pleased with the outcome of this lengthy and careful political process. Renewal is necessary, the old law no longer sufficed. The new law fits this century.”

Also commenting on the passage of the Future Pensions Act, Aon Netherland CEO wealth solutions, Frank Driessen, said: “We believe that the transition to the new system is a step forward.

“Although there are still questions about parts of the legislation, the new contract is better suited to this time and the changed society. The new law offers employers the scope to give their employees more control over the details of the terms of employment, salary and pension.

“We expect that the most important bottlenecks will be resolved with the new system. But we also see that the transition to the new system in particular has become very complex. That is why it will be a major challenge to involve participants in this.”

Driessen warned that while the transition deadline of 2028 still seems a long way off, “it is not”.

“It is wise to act quickly," he stated. "Not only to be able to properly prepare for the transition, but also to make optimal use of the possibilities offered by the new pension scheme.

“Now is the time to reassess the two most expensive terms of employment (salary and pension). The new pension scheme can be used very specifically for the financial wellbeing of employees. This is important, because this way employers increase the involvement, vitality and resilience of their employees."

APG CEO, Annette Mosman, said that that original transition date of 1 January 2027 was still achievable and APG remains on target for that date.

“We are on schedule. Although an extra year is certainly nice for the sector, because there is plenty of work to do.

“A lot of us at APG have been busy with the preparations for several years. We have contributed ideas and input. And each time, we had to keep working with scenarios - with all the uncertainties that entails.

“Now we don't have to do that anymore. We finally know where we stand and can now focus all knowledge, competencies and resources on the implementation of the new pension act.

“The law is here now. And that is just the beginning. The schemes can be further fleshed out by the social partners and the funds.

“In the coming years, APG will convert past entitlements into personal pension assets for the nearly 5 million participants of its pension fund clients. A task we are tackling with both hands. In fact, we are excited about it!

“We will ensure that we move our funds’ participants to the new situation in a controlled and timely manner. In the process, we will pay full attention to explaining everything as thoroughly and as clearly as possible to those same participants.

“We have been preparing for this transition for years and our schedule is on track. So, it’s going to work. First take a day to breathe and enjoy the good news. And then, let’s get to work!”

Share Story: