Netherlands: Dutch Senate has adopted the Future of Pensions Act

Published on May 31, 2023

Dutch Senate has adopted the Future of Pensions Act

On 30 May 2023, the Dutch Senate has adopted the Future of Pensions Act. On 30 May 2023, the bill and submitted motions were voted on and a majority was achieved. The plenary debate took place on 22 and 23 May 2023, with a total of 30 motions submitted. The Future of Pensions Act will come into effect on 1 July 2023, with a transition period until 1 January 2027. Pension funds will have until 1 January 2028 to comply with the new law.

The Future of Pension Act brings significant changes, including:

  • Transition from pension entitlements to personal pension pots: the current defined benefits schemes will be replaced by defined contribution schemes.
  • Abolition of the uniform premium: the premium contribution in the new defined contribution schemes will become age-independent. Each participant, regardless of age, will receive the same premium percentage (a flat-rate premium). The maximum premium is 30% of the pensionable salary.
  • Transitional arrangement for current age-dependent premiums: employers who already have a defined contribution arrangement with an age-dependent premium before 1 July 2023, can use a transitional arrangement. They can continue the existing pension scheme for participants who are employed before 1 January 2027.
  • Minimum entry age of 18: the statutory minimum entry age for the pension scheme will be lowered from 21 to 18 years as of 1 January 2024.
  • Changes to partner and orphan pensions: the amount of insured partner and orphan pensions will be standardized and expressed as a percentage of the salary.

Employers and employees will face challenges, as non-compliance with the legislation from 1 January 2027 will result in taxation and significant financial consequences. Trade unions and works councils will also need to take action. CMS can provide guidance and assistance in this process. Please contact us for any questions or concerns. For more details, visit our previously published article.


Should you wish to receive more information or if you have any questions regarding the impact of the new pension law on your business, please contact us.

Fleur van Assendelft de Coningh | Employment & Pensions Lawyer at CMS

Merel Kroneman | Employment & Pensions Lawyer at CMS Netherlands