Two choices under the Future of Pensions Act? Or are there three?

Publication date: 13 April 2026

Many employers with an insured pension arrangement that does not yet comply with the Dutch Future of Pensions Act (“Wtp”) assume that the decision regarding the pension savings contribution is relatively straightforward. Either they apply the transitional arrangement for their existing premium scales, or they move all employees to a flat-rate premium. However, this view is too simplistic.

There is a third option that often receives insufficient attention: applying the transitional arrangement for existing contribution scales while simultaneously offering current employees the voluntary option to switch to the flat-rate contribution.

Employers that fail to consider this third option run the risk that their decision is driven primarily by simplicity or administrative convenience, rather than by what is genuinely appropriate for both the employer and the employees. Moreover, this assessment goes beyond legal aspects alone. Financial implications, communication risks, and the potential for future employee claims, where employees may argue that this third option should have been examined (more thoroughly), also play a key role.

Equally important, this is not a decision that an employer can simply make unilaterally. Timely consultation with the pension committee and - where applicable - the works council is essential. Not only because this may be legally required, but above all to prevent surprises, resistance, or the need for corrective measures at a later stage.

The key question that employers (and their pension advisers) should therefore ask is not: “apply the transitional arrangement or not?” But rather: “have we assessed all realistic options and can we demonstrate that we have done so?”