Published on 03 July 2020

Pension agreement an important step further

In the summer of 2019, the government and the social partners concluded an outline pension agreement. They then negotiated the details for another year. On Monday 22 June, Wouter Koolmees, the Dutch Minister of Social Affairs and Employment, published a consultation document and the outline memorandum, which is supported by employee and employer organisations.

Why new rules?
Even though pensions in the Netherlands are properly arranged, it is vital that the Dutch pension system remains up to date. At present, many pension funds are unable to keep pace with the cost of living, even when the economic outlook is favourable. Fortunately, Bpf Koopvaardij is still able to do so to some extent, because the fund is in relatively good financial shape. Furthermore, young people are now paying more for the pension that they will eventually receive than older people. If you stay with a pension fund your entire life that makes no difference. However, if you start a new job with an employer without a pension scheme or if you become self-employed, you will eventually receive less pension than you paid for.

Pension will move in line with the economy
The new rules will ensure that pensions increase more rapidly when things are going well economically. They will also decrease quicker if things worsen economically. In other words, your pension will move in line with the economy. Young and old will also receive the pension for which they pay (together with their employer).

We will make an estimate of your pension
You and your employer will be putting money aside for your pension. That money will be invested. The money that everyone has put aside, together with the result on the investments, will make up the pension pot. Every year, Bpf Koopvaardij calculates your part of the pension pot. And on that basis, we will make an estimate of the pension that you will eventually receive. The outcome of that calculation will vary each year.

Pensions will be fluctuating
We also calculate the pension of pensioners in this way. However, there will be rules to ensure that the pensions of pensioners fluctuate as little as possible.

What will the new rules mean for you?
Nothing yet. After the political discussion surrounding the outline memorandum and a consultation round, the new rules must first be laid down in a law. Subsequently, we as a fund can apply the rules. We have freedom of choice regarding several matters. As soon as it is clear how we are going to apply the new rules, we will inform you exactly what this will mean for your pension. All these steps are expected to take several years.

We will keep you informed!

Updated on July 7th 2020