Information session about fit and proper assessments DNB
On Tuesday 28th May from 3:00-4:45 PM CET DNB will organize an online information session about fit and proper assessments.
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Is it possible to have a Dutch pension provider transfer accrued pension rights to a foreign pension institution?
Published: 25 February 2019
If a person is going to work abroad, it is possible under certain conditions to transfer the value of the pension rights accrued in the Netherlands to a foreign pension institution. Whether there is a right to an international value transfer depends on the specific situation.
Below you will find four possible scenarios in which Dutch pension providers are obliged or authorised to cooperate with an international individual value transfer.
1. Right to international value transfer within the European Union to the foreign pension institution of the new employer under Section 85 of the Pensions Act.
The first possibility concerns the situation in which an individual transfer is made to a pension institution from another Member State or an insurer having its registered office outside the Netherlands and the pension provider would be obliged to make the transfer it were to a Dutch pension provider. If the former scheme member requests such a transfer, a Dutch pension provider, as in national situations, must transfer the value of the pension rights to the new employer’s pension provider. This follows from Section 85 of the Pensions Act.
However, the obligation to cooperate only applies if the following conditions are also fulfilled:
The transferring pension provider is not permitted to levy a charge for the value transfer. Such an individual international value transfer is not submitted to or previously assessed by De Nederlandsche Bank (DNB).
2. Right to international value transfer to one of the European Communities or a designated institution under Section 86 of the Pensions Act.
The second possibility concerns the situation in which a former scheme member requests a transfer of the value of the accrued pension rights to one of the European Communities or the designated institution.
In this situation the former scheme member is entitled to a value transfer (and the pension provider is obliged to cooperate) if the following conditions are met:
The transferring pension provider is not permitted to levy a charge for this international individual value transfer. Such an individual international value transfer is not submitted to DNB nor is it assessed in advance.
3. Authority to cooperate with an international value transfer to another foreign, non-EU/non-EEA institution under Section 87 of the Pensions Act.
The third possibility concerns the situation in which a former scheme member requests a transfer of the value of the accrued pension entitlements to a pension institution outside the EU/EEA. In this situation the Dutch pension provider is authorised, but not obliged, to cooperate with the international individual value transfer.
The conditions and the procedure for notification and assessment of such an international individual value transfer to another foreign institution can be found here.
The Dutch pension provider is not permitted to transfer the value until DNB has issued a positive statement.
4. Authority to cooperate with an international individual value transfer to a pension institution from another Member State or an insurer having its registered office outside the Netherlands under Sections 88 and 89 of the Pensions Act
The fourth possibility concerns situations in which the Dutch pension provider is not obliged but is authorised to cooperate with an international individual value transfer to a pension institution from another Member State or an insurer having its registered office outside the Netherlands.
This authority applies as in national situations if the Dutch pension provider has the necessary authority. For example, if a former scheme member submits a value transfer request outside the time limit or if the former member is entitled to shop around in the case of a defined contribution scheme or capital sum agreement and fulfils the conditions that also apply in national cases.
Such an individual international value transfer is not submitted to DNB nor is it assessed in advance.
On Tuesday 28th May from 3:00-4:45 PM CET DNB will organize an online information session about fit and proper assessments.
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