The new pension system is coming, but what is actually known about it? And above all: what does it mean for your own pension? We list the issues for you.
Two schemes
The new system offers a choice of two options. They are officially called the 'new pension contract' and the 'improved premium scheme'. The terms are somewhat ambiguous, but they are both premium schemes. This means that the amount of the pension depends on the premium paid (by the employer and by you) and the return on investments. This is different from the current scheme, in which you accrue a certain percentage of your pension entitlement each year. The pension therefore becomes less certain.
Individual and collective
The main difference between the 'new pension contract' and the 'improved premium scheme'.
Is that the first option has more collective elements (where participants share the joys and the burdens), while the improved premium scheme offers more individual choices.
Making choices
In the coming period, the social partners (employer and trade unions) will make a choice for one of the two new schemes. The starting point in that choice is which scheme is best for the participants. We are still waiting for the amended Pensions Act, in which the details will be worked out.
The 'old' pension
The pension that you have already accrued can be transferred to the chosen new scheme. This is called "consolidation". Here too, the social partners will assess what is best for the participants. Not transferring your pension to a new scheme is an option, but it does make things more complicated, because participants and pension funds will then have to deal with different schemes that have to be implemented simultaneously.
The planning
The amended Pensions Act governing the new pension system is likely to come into effect on January 1, 2023, one year later than originally intended. By January 1, 2027, all pension funds will have to operate in accordance with the new law.
Always up to date
A great deal is still uncertain and important decisions have to be made. The pension fund will continue to look after your interests and keep you informed of developments in the near future.
