Dutch Pension plans – Changes for 2018

by Alexander Beard, on Jul 19, 2017 11:08:41 AM

Corporate pension age
The retirement age for occupational pension schemes will be increased from January 1, 2018 from 67 to 68 years. The increase on the pension age has consequences for the maximum allowed accrual rates in DC plans. These will be lowered with 4% to 6%.

Maximum allowed age related premium based on 3% interest per 01-01-2018;

Age               2017        2018

15 to 19         7,3            6,9

20 to 24         8,1            7,7

25 to 29         9,4            8,9

30 to 34         10,9          10,3

35 to 39         12,7          12

40 to 44         14,8          13,9

45 to 49         17,2          16,2

50 to 54         20,1          18,9

55 to 59         23,6          22,3

60 to 64         28             26,4

65 to 67         31,8          30,5

The accrual rate in average pay schemes remains 1.875% per year for old age pension. The new pension benefits will be paid later (68 instead of 67 years).

This legislation change could affect your company’s pension plan. If the current scheme exceed the fiscal maximum allowed percentages after 01-01-2018, the plan needs to be adjusted.

All clients that are affected by this will be informed by us in September of this year.

State Benefit pension (AOW) age
In 2018 the state retirement age is 66 years and will increase according to a fixed schedule to 67 year and 3 months in 2022.

This means that a difference remains between the two pension ages, which can be confusing for those employee eligible for both state pension and a pension benefit from their employer.

Bram Bogaard
Managing Director: Europe - AB International Benefits B.V.

Topics:EuropePensions