Future Pensions Law

On May 30, after years of deliberation, the Senate approved the entry into force of the Future of Pensions Act (WTP) on July 1, 2023. Pension providers have until Jan. 1, 2028, to implement the new rules.

The promise of a benefit (pension entitlement) will disappear and the defined contribution scheme will become the new standard. Thereby the premium remains the same for all members of a fund regardless of age. The accrual will have a more individualistic character, allowing younger members to take more investment risk, while the younger members will no longer have to contribute to the commitments of older members.

The ultimate pension benefits will no longer be fixed but will depend on the investment results. Pensions will be less certain, they will fluctuate more.

The survivor's pension will also change. The standard partner's pension will be 50% of the entire pensionable salary and the amount will not depend on the length of service. There will no longer be a pot, it will be insured on a risk basis. This means that upon leaving employment there will no longer be a partner's pension. There will therefore be an option to use part of the accrued retirement pension at that time for voluntary continuation of the partner's pension.

This new law contains more than just rules about pensions. It includes a broadening of the annuity possibilities as well as an obligation for all working people to have disability insurance. So the introduction of this law is quite impactful and also not 100% clear yet. A huge pension amount will have to be divided among (former) participants, as much as 1.5 trillion euros, and this "saving in" is still a point of discussion. There will also be a possibility to withdraw 10% of the pension and/or annuity capital in a lump sum but that falls under another law (Lump sum, RVU and Leave savings).

Keep an eye on the website "Our new pension", on this you can find a lot of information around this topic.