Our new pension system

No longer a fixed benefit

In the new system, pension funds no longer commit to paying a fixed benefit. Everyone will build up pension in a contribution scheme. The money in the scheme is then invested. Employees can see their contributions to the scheme and how their personal pension account develops. If the economy is doing well, pensions can go up too. If the economy is doing poorly, pensions may go down. 

Lower risk for older pension fund members

The new rules ensure that investment risks for older members decrease over time. After all, younger members’ pension accounts have more time to recover from setbacks in investments than those of older members. That is why younger members’ contributions can be invested with greater risk and potentially higher yields. Employers and employees can also decide to set aside a specific share of the collective pension capital as a buffer for setbacks.

Before the new system starts

If employers decide to transition to the new system, they have until 1 January 2028 to make the necessary arrangements with their pension providers. They must allocate the accrued pension capital between the younger and older generations.

What do they have to do?

Most employers and pension funds have started to prepare for the new system. Employers must decide on the type of pension contract for their employees. Pension funds must adjust their calculations and transfer the collectively accrued pension capital to individual pension accounts. This process is known as ‘conversion’. Calculations, data and IT must be converted to ensure all pension rights are transferred correctly to the new system. Pension funds must make balanced assessment of interests when transferring collectively accrued pension capital to individual pension accounts.

What role does DNB play?

Like in the current system, DNB ensures that

• pension funds’ investments are in the interests of the members
• pension funds’ directors are fit and proper for their job

pension funds’ bookkeeping and accounting systems are in order.

DNB assesses the pension funds’ conversion processes

During the transition period from the current to the new system, DNB is responsible for assessing pension funds’ conversion process. If employers decide to transfer their pension capital to the new system, pension funds must carry out the conversion, except if this would be against the law, if the distribution of pension capital is unbalanced, or if conversion would be otherwise unfeasible. DNB checks whether the conversion process meets all statutory requirements, for example in terms of decision-making, financial impact, group actuarial equality and balanced consideration of interests. If a pension funds fails to meet the statutory requirements, DNB must prohibit the conversion.

Statement of views – conversion plan

The pension fund must make a conversion plan available to its members on its website. The members must then be given an opportunity to submit a statement of views about the intended conversion before DNB takes a decision. DNB collects and considers the statements of views in its decision. Submitting a statement of views is subject to certain conditions. The conditions for submitting a statement of views on a conversion plan are described on DNB’s website (in Dutch).

Statement of views – bridging plan

If a pension fund wishes to apply a transitional arrangement for increasing and decreasing pensions, it must submit an annual bridging plan to DNB for each year of the transitional period, setting out the fund’s financial situation until the moment of conversion.   Members can also submit a statement of views on a pension fund’s bridging plan under certain conditions.  The conditions for submitting a statement of views on a bridging plan are described on DNB’s website (in Dutch).