News item | 02-07-2025 | 11:33 AM
As of January 1, 11 million participants are expected to transfer to the new pension system. It concerns 59% of the total number of participants that ultimately passes. At present, 235 thousand participants have already switched, divided into five pension funds and a number of insurers and premium pension institutions (PPI). In the end, around 95% of all pension participants are expected to switch over the next year and a half. This is what Minister of Social Affairs and Employment Eddy van Hijum writes in the Pensions Progress Report.
Minister Eddy Van Hijum: “This is about the existence of millions of pensioners and future pensioners. We have to do the transition to the new system very carefully, and that is why we take the time for that until 2028. The sector works hard to make a smooth transition possible. The past fifteen years of the pensions have not had any prizes for them. For many people, Sezeeg has been tempting themselves or has sogged out for it. Unsatisfied.
Information provision participants
Research shows that the trust of participants in retirement has risen slightly over the past three months. That does not alter the fact that there are questions and concerns of participants about the transition to the new system. Minister Van Hijum takes additional measures to ensure that participants are properly involved in the transition. For example, funds must explain why they did not choose to stay in the old system and why the transition is in the interest of the participants. The regulations are also tightened so that participants have a realistic picture of how much pension they get. And finally, the pension sector has to get started to learn from each other how to enter into the right conversation with the participants.
Course of the transition
Compared to the previous progress report, there are 13 funds that have postponed their entry date. This is often chosen because of practical matters, such as the available capacity at the contractor or regulator, being available of an auditor’s report or delay in valuing the real estate.
On January 1, 2026, 36 funds will be transferred to the new system, followed by fifteen funds on July 1, 2026. The largest number of funds – 51 – expected to proceed on January 1, 2027. On 1 July 2027, twelve funds will follow and on January 1, 2028 the last seventeen will pass. 270,000 participants who are divided into 32 pension funds do not eventually pass. For funds that do not proceed, a new pension accrual by workers is no longer possible in the old scheme. However, in half of the funds it is already the case.
Transition at insurers is lagging behind
Most regulations at an insurer or PPI will only be converted in 2026 or 2027, with the center of gravity in the last year. The Government Commissioner Transition Pensions Prof. Dr. Fieke van der Lecq signals that this can cause problems and advises to spread the converting of the insured scheme more. Minister Van Hijum is therefore in discussion with insurers, social partners and advisers to make concrete agreements about a coordinated approach.
Deadline to proceed
It is currently stated in the law that all pension providers must be left before 1 January 2027. The government wants to give the pension providers an extra year for a careful transition. The bill that arranges this has recently been adopted by the Lower House and is now in the Senate. In its advice, the government commissioner indicates that he does not see any reason to shift the utmost transition date than 1 January 2028. In addition, she warns that deferment is not free, but also entails financial risks.
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