Future of pension act (WTP)
The WTP came into effect on July 1, 2023, ensuring that every new pension scheme is radically different from what we have been accustomed to. It is a significant shift. All existing schemes in the Netherlands must be adjusted by January 1, 2028. The main features of the WTP are:
- The pension scheme must be a defined contribution plan. Benefit agreements, such as average salary and final salary schemes, are no longer permitted.
- The contribution for building up a capital for retirement pension and survivors' pension after the retirement date must be an age-independent percentage expressed in the pensionable salary, with a maximum of 30%.
- The partner’s pension in case of death before the retirement date (risk insurance) must be a guaranteed benefit expressed as a percentage of the salary, with a maximum of 50%.
The WTP has legal, tax, insurance, actuarial, and employee benefits implications. Compensation and approval are also extremely important. KWPS takes care of analysis, advising, communication, validation, compensation, and implementation. We are pleased to act on behalf of the employer or the Works Council.
Contacts:
Natasja Winter and Dirk de Wit