Changes to Bundled Pensions Take Effect in the Netherlands | Mercer

Changes to Bundled Pensions Take Effect in the Netherlands

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Changes to Bundled Pensions Take Effect in the Netherlands
Changes to Bundled Pensions Take Effect in the Netherlands
Calendar07 January 2019

Legislation (Dutch) amending the Dutch pensions act effective 1 Jan 2019 includes new relief for pensioners affected by increases in the state retirement age. While the Bundle Act Pensions 2019 is largely devoted to clarifications and technical issues, substantive provisions include:

  • A general framework for pensioners faced with a greater gap between their state pension and their lifelong pension because of increases in the state pension retirement age — pensioners can swap part of their lifelong pension for a bridging pension to fill the gap.
  • Changes to the minimum legal requirements for payment of premiums to providers of plans in which the monthly premiums are calculated on the actual wage paid to the employee during that month.
  • Rules to improve employee pension participation in companies with fewer than 50 employees.
  • Rules allowing providers of existing very small pensions (EUR €2 or less) resulting from participants' termination of their participation in 2017 and 2018 to make a one-time payment to discharge their obligation to participants — payments will be permitted until 1 Jul 2019.
  • Rules prohibiting pension providers from outsourcing the preparation and supervision of the plan's strategic investment policy.

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