After our reporting in December 2023 about the choices to be made regarding the pension scheme, we can inform everyone that we have reached an agreement on the chosen pension system, compensation for a higher employee premium and a manageable opting out with the employee premium. In view of the results achieved, we agree with one positive advice to you.
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The trade unions and Philips believe it is important that there is a good arrangement for our employees when they retire at the end of their career.
Since last year, there has been a new law that requires all existing pension schemes in the Netherlands to be adjusted. As a result, Philips and the trade unions entered into consultation with each other.
With this message we jointly inform everyone about the outcomes for people who fall under the collective labor agreement in the Netherlands (up to and including department CG80).
Philips' wishes
As far as Philips is concerned, the pension must be future-proof and solid, and more or less equal to what other parties in the market offer. It should be as flexible as possible and match the personal preferences of our employees.
In September 2023, Philips asked employees via a survey to indicate preferences for individual freedom of choice in the new pension scheme. A third of the employees have made use of this. For Philips, the results of that survey formed the basis for discussions with the unions about a new arrangement.
Principles of trade unions
The unions consider pensions to be a very important employment condition in which they want to remain involved. After the transition to the new system, the unions opt for a solidarity arrangement that most closely resembles the current system. With good protection against setbacks, but above all a good structure given the amount of the premium that applies at Philips. The unions agree with Philips' proposal to provide scope for making one's own choices, albeit only above a salary limit and to a manageable extent.
The outcome: solidarity-based pension scheme with a flexible component
After intensive consultation, an agreement has been reached on the revised pension scheme. This agreement is submitted to the members for a vote by the unions. We would like to explain the details of the agreement below.
What have the unions and Philips agreed?
- Philips' pension scheme will change with effect from July 1, 2026.
- The arrangement is designed as a solidarity premium scheme with a manageable, flexible component.
- The total available contribution for pension remains the same, namely 29,4% of the part of your salary on which the pension contribution is calculated.
- With effect from October 1, 2024, the contribution of employees to the pension will be increased from 2% to 8% of the part of your salary on which the pension premium is calculated. Philips' contribution to the pension contribution will decrease from 27,4% to 21,4%.
To compensate, the gross salaries will be increased as of October 1, 2024 in such a way that there will be no net difference. A higher gross salary can be beneficial for, for example, your bonus, shift allowance, pension accrual or if you want to take out a mortgage. - The salary scales in the collective labor agreement will be adjusted as of October 1, 2024: the compensation and therefore the increase in the gross salary for scale position 100 will be calculated per profession. The salary scales will then be adjusted as of October 1, 2024 based on the new calculated salary of scale position 100 in each professional group.
- As soon as the new scheme comes into effect on July 1, 2026, employees with an annual salary higher than € 87.500 gross will have the choice not to save or only partially save their own pension contribution of 8% above this salary limit for pension. If they do not opt for pension savings, the amount will be paid out gross in 12 monthly installments in the following calendar year, at the same time as the salary.
The salary limit of €87.500 has a reference date of January 1, 2025 and will be indexed afterwards. - The new pension scheme will also make it possible to save more pension within tax limits.
We agree to one positive advice because we listened carefully to the input at the start of the pension discussion in 2022. We were then clearly told to opt for a solidarity-based premium scheme. Philips linked this choice to an increase in the employee premium, but this is well compensated. Employees who earn a salary higher than €87.500 can opt out in the future after being fully informed about the consequences.
Consultation of members
You can read the text of the (partial) agreement as drawn up with trade unions . The unions present this agreement to the members, whereby members with a Complete membership can vote on it.
For de Frequently Asked Questions (FAQ) read here. There are a 3 flyers with examples of the agreement reached, see the following examples in the links CG27 5 shifts, CG45 en CG70.
To vote
The members have received an invitation to vote until Thursday April 25, 2024.
How further?
As soon as the new scheme is formal, Philips Pension Fund will start preparing for its introduction. Your pension will transfer to the new scheme on July 1, 2026; the Philips Pension Fund will carefully guide you in this.
We will of course keep the members informed about the process to arrive at a new collective labor agreement that started on April 8, 2024.
Contact
If you have any questions or comments, you can contact the representative Suat Koetloe by email suat.koetloe@unie.nl or call 06-5252 2061.
