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  • Writer's pictureAlexander Beard

Pension reform in the Netherlands: A synopsis from our country manager Bram Bogaard

Updated: May 25, 2023

Pension Reform From July 1st, this year, the Dutch pension landscape will change radically. The new legislation is aimed to adapt the Dutch pension system more directly to economic developments. Although the legislation has not yet passed the Senate of the Netherlands, it is expected that the Senate will vote and agree on the new Legislation on May 30th, to be in place for 1st July.


The Dutch Future of Pensions Act (FPA) means that Defined Benefit plans are no longer possible. All pension plans need to be adjusted to flat, age independent defined contribution.


A transitional phase will be in place. This means that existing age-related DC schemes can be continued for the current workforce. For new employees, the flat rate contribution scheme needs to be in place by 1st January 2027 at the latest. Although there will be a transitional phase in place, it is highly recommended that all employers start to prepare road map as soon as possible so they are ready to communicate on all the decisions that will be required.


The new system’s main characteristics for DC plans. In the new pension system, there will be an age independent flat contribution for all contracts, the maximum contribution rate will be based on a pension ambition of 75% of the average salary in 40 years (accrual old age pension 1.875% per year). At this time this means a maximum of 30% of the pension base is allowed. A temporary maximum of 33% will be in place for the transition.


  • Existing DC plans based on age related contributions will be allowed to remain as they are for existing employees.

  • The current method of calculating the partner’s pension will change. The employer will be able to insure a maximum of 50% of the wage as insured partner’s pension. The insured amount will no longer depend on the years of service with the employer.

  • Transition phase from 2023 to 2027.

If it comes to the changes regarding the pension plan, employee participation is a requirement. Depending on the size of your company the work council or a representative body need to be included in the whole process of information and decision making.


Communication and employee participation

The main rule is that the pension plan needs to be adjusted with the consent of each individual employee. Every employer needs to write a transition plan.


With Alexander Beard International Benefits as your trusted advisor, we can be of help as usual for all aspects in relation to the transition: consultancy, employee communication with the employees and their representatives, and choosing the requisite pension provider etc.


Please contact us for more information. Bram Bogaard

Country Manager Netherlands



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