You have probably already heard or read about it. The Pensions Communication Act (Wet pensioencommunicatie). This Act entered into force as of 1 July 2015. The government is aiming to improve communication on pensions by means of this Act. Pension 1-2-3 is part of this Act.
What is Pension 1-2-3?
This is a new form of communicating about pensions. Pension 1-2-3 offers layered information about a pension scheme. It ensures that every employee who accrues pension is informed in the same recognisable way about his or her pension.
What does Pension 1-2-3 look like?
The form, the titles and icons that are used in Pension 1-2-3 are the same for every pension administrator. This ensures that information is always immediately recognisable even for participants with different pension schemes. There are three different layers in Pension 1-2-3:
• Layer 1: The pension scheme in ‘5 minutes’
Provides a brief summary with the principal information about the pension scheme.
• Layer 2: The pension scheme in ’30 minutes’
Provides more information and describes the topics of layer 1 in greater detail.
• Layer 3: The pension scheme in ‘detail’
Comprises all other documents, such as the pension regulations and the administration agreement.
Participants will find answers to the following questions in layers 1 and 2:
– What will you receive in our pension scheme?
– What will you not receive in our pension scheme?
– How do you accrue pension?
– What are the options available to you?
– How certain is your pension?
– What are the costs we incur?
– When do you need to take action?
What will change?
The change in legislation has taken effect on 1 July 2016. From 1 July 2016, all participants who take part in a pension scheme at BeFrank will have access to their personal pension page showing Pension 1-2-3. Instead of an introductory letter participants will receive an introductory e-mail. As of 1 July 2017, this also applies to former employees, former partners and persons entitled to pension.
What does this mean for employees?
Nothing will change for employers with regard to the pension scheme. The changes only relate to communication and the provision of information. Within 3 months after the date of commencement of their employment, new employees will receive information about their pension scheme, Pension 1-2-3 and will be given access to their personal pension page. That is also where they will find all Pension 1-2-3 documents.