The Future of Pensions Act (Wtp) has been in force since 1 July 2023 and there are new rules for pensions in the Netherlands. This new legislation has consequences for the various pension funds at NN. Three working groups have now been set up to prepare adjustments to the new legislation.
Working group current NN pension scheme
The current NN Pension Scheme, implemented by BeFrank, already largely complies with the new legal rules. We have already agreed on a flat premium. The compensation for the abolition of the average system has also been agreed. Adjustments are still needed to make the current pension scheme Wtp-proof. A working group has been set up for this purpose, consisting of union officials, executives, NN and external advisors. The main adjustment required concerns the amount of the survivor's pension (partner's and orphan's pension).
Amount of survivor's pension in the event of death before retirement date
With a Wtp-proof scheme, the survivor's pension is insured on a risk basis and the amount of the survivor's benefit (in the event of death before the retirement date) is calculated on the basis of a fixed percentage of the pensionable salary. How long you worked for an employer before you die will no longer have any influence on the amount of your survivor's pension. The law states that the partner's pension may be a maximum of 50% of the pensionable salary and the orphan's pension may be a maximum of 20% of the pensionable salary.
The amount of the partner's and orphan's pension to be insured is part of the consultation between NN and the trade union. At NN, the survivor's pension is already insured on a risk basis. This remains unchanged. We do have to change the calculation of the survivor's benefit, because we have to switch to a fixed percentage of the pensionable salary. The pension working group provides advice to collective labor agreement parties on the level of the percentage.
Next steps pension working group Current NN pension scheme
The pension working group expects to be able to provide advice to the collective labor agreement table in the short term. The members of De Unie receive the advice of the pension working group from us. Then the negotiations start. When we reach an agreement with NN, the proposed adjustments will be made to the members of De Unie are put to the vote.
Working group on closed pension funds
In addition to the working group for the existing NN Pension Scheme, there is also a pension working group for the closed pension funds (NN CDC Pension Fund and Delta Lloyd Pension Fund). De Unie also participates in this working group. Together with the pension funds, we will determine what the best solution for the future is for participants: leave the current scheme unchanged, or comply with the Wtp. It must be clear before January 1, 2025 whether and, if so, which changes are required in the closed pension funds. If necessary, these arrangements must be adjusted no later than January 1, 2028. As soon as there is an update, members will receive information about it.
PFI working group
Works in the PFI working group De Unie together with NN, ING, other trade unions and the ING Pension Fund on a study into the future of this fund. This pension fund is also a closed fund, but two employers are involved in this pension fund. This makes the consultation more complex.
It was recently decided to adjust the allowance measure for participants working at NN and ING, so that the fund only has one allowance measure. A large majority of the members involved agreed to this
Contact
Do you have any questions regarding this message? Please contact me. This can be done by sending an email to: inge.de.vries@unie.nl
