The pension agreement: what does it mean to you?
It will not have escaped your notice that there is a new pension agreement. A lot has been written about it, but what does it mean for you? It is currently still hard to be sure, because much needs to be worked out in more detail. We have listed the changes for you below.
Why a new pension agreement?
The reason for the new pension system is really very simple: the pension system needs to be futureproof, which the current pension system is not. But your pension with BeFrank is already futureproof, because BeFrank provides a defined contribution scheme. That will soon be the only scheme that can still be provided. You have your own pension capital, and the level of your final pension will depend on the investment returns.
The 3 most important changes:
- Withdraw 10% of your pension capital in a lump sum
It has been agreed in the pension agreement that, in due course, you can have 10% of the pension capital paid out to you in a single payment on the retirement date. This is called the lump sum. Certain rules will apply to this. - A fixed pension premium will be implemented
Currently your pension premium often increases as you get older. The goal of the new pension agreement is for everyone to receive a constant premium percentage. For current employees, an employer may choose to use the existing pension premiums. Or a transitional arrangement may apply. The exact details have not yet been worked out in this regard. - The rules for the partner’s and orphans’ pension will change
Under the new pension system you can insure a maximum of 50% of your salary for your partner’s pension. It makes no difference how long you have been with your employer. The orphans’ pension can be 20% of your salary, and will last until your children are 25.
No later than 1 January 2027
The pension schemes need to be modified no later than 1 January 2027, but can be modified with effect from 1 July 2023. Initially this was 1 Januari 2023.
It is not currently entirely clear yet how the rules will be applied
The details are still being worked out. The bills will be taken up by the Dutch House of Representatives and the Senate in 2021. The time when your scheme will be modified and how the points listed above will be implemented depend on what your employer agrees with its employees. for the time being we need to wait and see.
We will keep you informed
We will be in touch as soon as we know more. If you don’t want to miss a thing, follow us on Instagram or Facebook.
Explore your pension
Your personal pension page tells you what you are accruing with BeFrank and what options you have to influence your pension. You can also easily list all the pensions that you have accrued with previous employers in your income planner. That will give you a clear insight into your predicted pension. Explore your pension today, so that you can do the things you have planned in the future.