On Tuesday, May 30, 2023, the Senate approved the Future Pensions Act. Many years of negotiations, calculations and delays preceded this law. The effective date of the law is 1 July 2023. All pension schemes must be converted and comply with the new law by 1 January 2028 at the latest.
The WTP regulates the transition to another pension system. Final pay and average pay schemes will soon no longer be allowed. All pension schemes must take a certain contribution level as a starting point. The premiums are invested and you use the capital to buy a pension in due course.
Are we there now?
No definitely not. The good news is that we finally know when the law goes into effect. Until recently it was still uncertain whether the effective date would be postponed again. However, there is still a lot to do in terms of content. Social partners, pension funds and administrative organizations have been preparing for the new law for some time now and everything that needs to be done to carry out the transition properly and on time.
In many companies and sectors, however, final choices still have to be made in many areas. Subsequently, all new agreements must be translated into the administration systems. For the whole of the Netherlands, it is a huge operation to ensure that all pension schemes comply with the new law on time and to convert any accrued pensions to the new system.