Failure to timely transition to the Future of Pensions Act: no fines, but severe tax consequences

Date of publication: 8 May 2026

In recent months, reports have circulated suggesting that employers who are not affiliated with an industry-wide pension fund could face substantial fines if they fail to adjust their pension arrangements in time to comply with the Future of Pensions Act (Wet toekomst pensioenen, Wtp). In some cases, figures of hundreds of thousands of euros have been mentioned. Such messages sound alarming and have caused unrest among both employers and employees. That concern is understandable, but some nuance is required.

No fines

Employers will not automatically be fined if their pension arrangement with a pension insurer or a PPI (pension premium institution) has not been amended by 1 January 2028. However, this does not mean that inaction is without consequences. On the contrary: failing to act may lead to serious tax problems. If no steps have been taken so far, a degree of urgency is now very much warranted.

What is the real issue?

The real risk does not lie in administrative penalties, but in taxation. If the pension arrangement has not been brought into line with the Wtp by 2028, the scheme will become fiscally non-compliant. This has far-reaching consequences for both employees and employers, including:

• employer pension contributions may be treated as ordinary taxable wages;
• mandatory employee contributions can no longer be deducted from gross salary;
• employees may face unexpected additional income tax and box-3 (wealth) taxation;
• administratively, a fiscally non-compliant pension scheme is extremely burdensome;
• significant uncertainty may arise regarding the employee’s accrued pension rights.

This is highly detrimental for employees, but equally problematic for employers. Employees are entitled to expect that their employer acts in a timely and diligent manner. If an employee suffers fiscal damage due to an employer’s inaction, the employer may be held liable. In that sense, the outcome may still feel like a “fine”, albeit indirectly.

Do not wait for the pension provider

Some employers have adopted a “wait and see” strategy, relying on their pension provider to take the initiative. That is a dead end. While a pension provider may be able to unilaterally amend the execution of a scheme, it cannot amend the underlying agreement between employer and employee. That agreement—the pension agreement—remains legally in force as originally concluded. And that is precisely what the Dutch tax authorities will assess. Merely adjusting the execution with the provider therefore does not eliminate the fiscal risk.

What must be done instead?

The solution requires time, expert advice, and above all decisive action:

• employers and employees (and/or employee representatives) must always agree on new pension arrangements; no existing pension scheme complies with the new legal framework;
• these arrangements must be clearly explained, agreed upon and formally documented;
• only then can the pension provider implement the scheme correctly.

This process typically takes many months, and tens of thousands of employers still need to transition. Postponing action is therefore risky: if too many employers wait until the last moment, implementation capacity will become scarce (the inevitable bottleneck), and not everyone will be able to transition in time.