New Pension schemes because of the Dutch Future of Pension Act (WTP)
The Dutch Future of Pension Act (Wet Toekomst Pensioen, WTP) came into force on 1 July 2023, and there are new rules for pensions in the Netherlands. As a result, pension schemes must be adapted accordingly.
NN Pension Scheme working group at BeFrank
The current NN Pension Scheme already meets most of the new legal requirements. A working group has been set up to make the current scheme at BeFrank fully WTP-proof. The working group will, among other things, advise the CLA table on adapting the surviving dependents' pension to the WTP.
Accrued pensions in the closed pension funds
No more pensions are accrued in the closed pension funds. These are the old NN pension schemes of the closed pension funds: Pensioenfonds ING, Delta Lloyd Pensioenfonds, and NN CDC Pensioenfonds.
Legally it is possible to leave these accrued pensions unchanged. T Then the pensions remain under the old pension rules (FTK-Financial Assessment Framework), and in principle, nothing changes.
New pension scheme or not?
Still, it is good to consider whether it is favourable to switch to a new WTP-proof scheme. For participants in a closed pension fund, the new rules may be more favourable. The WTP offers more options for participants, making pensions more personal and transparent. Also, a smaller buffer needs to be held, making more money available, and pensions can be increased more quickly. On the other hand, due to the smaller buffer, pensions can also be reduced more quickly.
Within the WTP, a choice can be made between a solidarity or flexible pension contract. In a solidarity contract, the positive and negative results (risks) are shared by the participants. In a flexible pension contract, participants have more (investment) freedom and carry the risks individually.
It is important to investigate and balance out what is best for the participants in the closed pension funds: to remain under the old pension rules (FTK) or to switch (merge) to the new pension rules (WTP). The outcome may differ per closed pension fund.
Working group started for closed pension funds
The decision to merge into the WTP or stay in the current scheme (FTK) is not easy, and there are advantages and disadvantages to all options. Therefore, NN, together with the trade unions (CNV Vakmensen, FNV Finance, and De Unie) and the aforementioned pension funds, has set up a working group. In good cooperation, they work towards the common goal: "What is best for the accrued pensions of all participants in the closed pension fund?". The working group is in the research phase. As soon as there is news to report, we will inform you via SAM.
Who decides to merge or not?
Any adjustment to the pensions in the closed pension funds is a subject of discussion between the employer, trade unions, and the closed pension funds. The decision whether the accrued pensions will merge into the WTP or not lies with the social partners (employer and trade unions). If the social partners decide to merge, NN can request a merger of the pension funds. The board of the relevant pension fund then assesses whether the request to merge is in the interest of all participants in that pension fund (balanced) and whether it is feasible. All participants mean NN employees, former NN employees, and those already receiving a pension.
Timelines
Before 1 January 2025, it must be clear whether and which changes are necessary in the closed pension schemes, and by 1 January 2028, those schemes must have been adjusted if necessary.
More information about the new pension rules?
Check the Q&A document for answers to frequently asked questions. In addition, more information about the WTP can be found on the Dutch website. This website is created by trade unions, employer organisations, pension administrators, and the Ministry of Social Affairs and Employment.