Employee Benefit update Netherlands
by Alexander Beard, on Apr 24, 2018 9:33:00 AM
Per 2018 all Defined contribution plans need to be prepared for the possibility for employees to buy a variable pension after retirement. Up to 2018 employees who retire needed to buy a fixed annuity with their DC pension capital at retirement date. Because of the current low interest rates that caused lower pension benefits than expected.
Employees now have the opportunity to choose a variable pension after retirement. With a variable pension, the amount of the pension is not fixed. The pension capital continues to be invested after the retirement date. Monthly payments are withdrawn from the available investment capital. This gives the employee the opportunity to receive a higher pension than would be the case with a fixed pension. However, when the investments have a negative return on investment, the pension payment can also be lowered.
You pension provider will introduce an additional life cycle that prepares the employee for a possible choice to continue to invest his pension capital after retirement.
Health and Disability
Changes in the Working Conditions Act have been implemented per 01-07-2017. There is a transition period until 01-07-2018 for companies to meet the new requirements.
The changes mainly impact the current relationship with the occupational health & safety service provider (Arbodienstverlener).
Every employer needs to have a basic contract with their occupational health & safety service provider which contains several minimum requirements such as;
- The requirements for prevention of occupational diseases and long-term absence;
- The rights and obligations of the company doctor and how these can be safeguarded;
- Rights of employees in relation to health & safety;
- Rights of employees for a second opinion and the complaints procedure.
The new legislation also introduces the right of the Works’ Council for approval to the person to be chosen to acts as occupational health and safety officer.
Managing Director: Europe - AB International Benefits B.V.