Employers who arrange pensions through insurers or premium pension institutions (PPIs) must accelerate their transition to the new pension system. According to a progress report from the Ministry of Social Affairs and Employment, the transition for these types of pension schemes is still moving too slowly. At the beginning of this year, 44,000 pension schemes in this category still needed to be converted. At that point, 32 percent of all schemes at insurers and PPIs had been transitioned.
Besides pension funds, employers can directly place their retirement arrangements with insurers or PPIs. While pension funds are on track to meet the January 1, 2028 deadline, the Ministry notes that time is running out for the other providers.
Action
“Although progress is being made, the pace of conversion is below the required level”, Minister Hans Vijlbrief states in the report. A major concern is that many transitions may occur in the final quarters before the deadline. This is creating heavy pressure on implementers and advisors. The number of advisors available to support employers with pension changes is limited, increasing the risk of bottlenecks.
Risks
Failing to complete the transition on time would have serious consequences for employers and employees. In such cases, the Tax and Customs Administration may classify the pension as wages, resulting in significantly higher tax payments. Employers also risk fines.
An action plan has been in place since last summer. Employers’ organisations, insurers, the FNV trade union, and an umbrella group for financial advisors are urging employers to speed up the transition.
@anp | NEWSBRAINPORT
