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The new pension system: frequently asked questions

Hello, my name is Peter. I am a participant in the pension scheme of Pensioenfonds PGB. I like to stay informed about my pension because this is about my income for later. With the introduction of the new pension system, my pension will also change. Therefore, I want to know what this means for me. On this page I share frequently asked questions on this subject.
 



The government, employers and employees agree with one another: pensions will be different in future; a new pension. It will be a pension that feels more like your own and that adapts more directly to economic developments. It will take some time before the new pension takes effect. But I want to know more about it now. Perhaps this applies to you as well. That is why I have created this page with frequently asked questions on this subject. 

Frequently asked questions for participants
You may have questions about the new pension, as we can imagine. We do not yet know all the answers to all the questions. But the things we do know, we also want to share with you. 

When will I be affected by the new rules?
In the coming years, nothing will happen to your pension on account of the new pension system. The current rules continue to apply until the new pension has become effective. This will be in 2026 at the latest. The minister has said he wants to avoid major pension cuts and this year relaxed the current rules for reducing pensions. From next year, there will probably be adjusted rules for pension funds that want to switch to the new contracts. These adjusted rules look ahead to how the new system will work, which will probably allow pensions to be increased sooner. The adjusted rules for next year and beyond will be announced in the coming months. 
My pension has not been increased for years; will this happen now?
When the new pension has come into effect, you will receive a pension capital and an expected pension in a best-case scenario (optimistic), a worst-case scenario (pessimistic) and an in-between scenario. If the economy is doing well, you will feel it more directly because your share in the collective pension capital will increase as a result. If the economy deteriorates, you will notice it right away. This is already the case for participants in a defined contribution scheme, and in due course it will be the case for all participants. But things have not got that far yet. The chances of your pension increasing in the short term are not very good. Due to low interest rates, we have to maintain substantial cash reserves to show that we can pay out the promised pensions now and in the future. We expect interest rates - and also the actuarial interest rate for pensions - to remain low for a long time to come. This means that your accrued pension is not expected to move with prices in the coming years. It is possible that as of next year, the rules will be changed so that pensions can be increased more quickly, but we will have to wait and see.
What about the actuarial interest rate? Will it be abolished now?
In the future, the actuarial interest rate will be abolished, but we will still have to deal with it in the coming years. Also, until the change in 2026, there is still the obligation to maintain a buffer before we are allowed to distribute additional returns on collective pension assets to all participants.Those rules may be relaxed from next year. At Pensioenfonds PGB we find the current rules for increasing pensions very strict, with both a low actuarial interest rate and a high buffer requirement. We are pleased that the height of the buffer during the transition period is likely to be adjusted and in the new system, returns will reach participants more quickly and more directly, even though losses will also be felt more directly. We regularly receive questions from participants about the actuarial interest rate. Here you can read more about the actuarial interest rate. 
What does this mean for my pension scheme?
When the new pension comes into effect, something will change for everyone. Everyone will soon accrue a pension capital. We will continue to invest collectively, so everyone will have their own share of the collective pension capital. At the moment, most people have a plan in which we promise a pension benefit: an amount per year that you have accrued during the years you worked. Do you have such a defined benefit scheme? Then much will change for you. Don’t you know which scheme you have? You will find this information in your Pension 1-2-3 in your personal PGB environment. You can also type in the name of your employer on this page.
I already have a defined contribution scheme. What will change for me? 
You already have a pension capital. That’s a good thing, because then you’re already used to it. Something is going to change, however, because of the agreed new rules for pensions. At the moment, the defined contribution that we put into your pension is determined by your age. This is required by law, as the contributions made by a young person may yield a higher return than those made by an older employee. This statutory obligation is about to change. The idea is that everyone who has the same pension scheme and earns the same salary will pay the same contribution in the new pension system. Then it will not make any difference whether you are young or old. But it is not yet clear whether and how this change will be implemented for people who already have a defined contribution scheme. This depends on the choice your employer makes. There will also soon be two different defined contribution schemes, so that a sector or company can choose between a more collective pension or a pension that allows for more individual choices. 
I have a defined benefit scheme. What will change for me? 
For you, quite a lot will change with the advent of the new pension. What your scheme will look like will be decided by the representatives of employers and employees in your sector or company. In doing so, they must comply with the statutory rules on pensions and taxes. Important changes are that everyone is going to make contributions into a pension capital. The system will remain collective and continue to be based on solidarity. So you get your own share of the collective capital. And you continue to share risks with other people, for example, the risk that you might die and then your surviving dependants need an income. There will soon be two options for a new pension: a more collectively arranged pension (‘the new contract’) and a more classic defined contribution scheme with more individual choices. The new contract will contain an extra pot, which can be used to cope with very bad times. A certain contribution has to be paid for this, which does not go towards the accrual of your ‘own’ pension capital.
Is it certain that the new pension will be introduced?
There is no absolute certainty. But the signs that the new pension will be introduced are clear. The government has translated the pension agreement with the social partners (employers and employees) into a draft bill. At the end of 2020, the government published this bill. Everyone was invited to comment to it. Pensioenfonds PGB has done this, too. Taking into account all the responses, the government will work to make a final bill. There may still be bumps on the road to the new pension, for example due to the Lower House elections in March 2021. If the Lower House decides to leave the pension dossier for the next cabinet, this will have consequences for the date on which the new system comes into effect.
Frequently asked questions for pensioners
You may have questions about the new pension, as we can imagine. We do not yet know all the answers to all the questions. But the things we do know, we want to share with you. 

When will I be affected by the new rules?
In the coming years, nothing will happen to your pension yet on account of the new pension system. The current rules will continue to apply until the new pension has become effective. This will be in 2026 at the latest. The minister has said he wants to avoid major pension cuts and this year relaxed the current rules for reducing pensions. From next year, there will probably be adjusted rules for pension funds that want to switch to the new contracts. These adjusted rules look ahead to how the new system will work, which will probably allow pensions to be increased sooner. The adjusted rules for next year and beyond will be announced in the coming months. 
My pension has not been increased since 2008, will it be increased now?
The chances of your pension increasing in the short term are small. Due to low interest rates, we have to maintain substantial cash reserves to show that we can pay out the promised pensions now and in the future. We expect interest rates - and also the actuarial interest rate for pensions - to remain low for a long time to come. We understand that this is very unpleasant for you as a pensioner, even though the AOW (state pension) is rising in line with prices. It is possible that the rules for raising pensions will be relaxed next year, increasing the likelihood of increases. We expect more clarity on this in the coming months. 
What about the actuarial interest rate? Will it be abolished now?
In the future, the actuarial interest rate will be abolished, but we will still have to deal with it in the coming years. Also, until the change in 2026, there is still the obligation to maintain a buffer before we are allowed to distribute additional returns on collective pension assets to all participants. Those rules may be relaxed from next year. At Pensioenfonds PGB we find the current rules for increasing pensions very strict, with both a low actuarial interest rate and a high buffer requirement. We are pleased that the height of the buffer during the transition period is likely to be adjusted and in the new system, returns will reach participants more quickly and more directly, even though losses will also be felt more directly. 
As a pensioner, I would like to know what income I can expect. How will this be arranged in the new pension system?
In the new system, the pension will vary more from year to year. You will then have a share in the collective pension capital, from which your benefits are paid. The return on the capital is added or subtracted. We take your situation into account in this context, so that windfalls and setbacks do not affect you as much as a pensioner as they do young participants. They can better absorb windfalls and setbacks. We calculate the benefit on the basis of an expected return. This is probably a conservative expectation. And we may spread the windfalls and setbacks over several years to keep your income stable. There is also an additional pot, the ‘solidarity reserve’, for very bad economic times. There is no need to worry that your share of the pension capital will be depleted because of you getting older than average. If this is the case, you will receive money from the collective pot, because others will not live as long as expected. We refer to this as sharing the risk. 
Is it certain that the new pension will be introduced?
There is no absolute certainty. But the signs that the new pension will be introduced are clear. The government has translated the pension agreement with the social partners (employers and employees) into a draft bill. At the end of 2020, the government published this bill. Everyone was invited to comment to it. Pensioenfonds PGB has done this, too. Taking into account all the responses, the government will work to make a final bill. There may still be bumps on the road to the new pension, for example due to the Lower House elections in March 2021. If the Lower House decides to leave the pension dossier for the next cabinet, this will have consequences for the date on which the new system comes into effect.
Frequently asked questions for employers
Where can I find the additional information for employers from the lunch meeting in August 2020?
Here you can find the summary of the lunch meetings.
Here you can find the presentation of the lunch meetings. 

We also plan to organise information sessions on the new pension system this year.
We will inform you as soon as more is known.
When will our company be affected by the new rules?
If all goes as planned, the new statutory rules will come into force next year. Everyone must then switch to the new contracts by 1 January 2026. If you are affiliated with us via a sectoral scheme, representatives of your employers’ organisation and the trade unions in your sector will have to make new agreements about pensions, and about when these take effect. For example, through the collective labour agreement. If you have a company scheme, the discussion will take place between your management board and a representation of employees, for example the works council and/or trade unions. This discussion will also include the moment of transfer. In addition to the employee pension, other arrangements have been made in the ‘pension agreement’, for example on sustainable employability. This too will be a topic of discussion in the collective agreement negotiations. 
What will happen to my pension contribution? 
As you know, there is a contribution increase for 2021 for defined benefit schemes. Due to low interest rates, purchasing pensions has become increasingly expensive in recent years. Actually, the contribution was supposed to increase already in 2020, but we wanted to give the affiliated sectors and companies time to think about their scheme. Last year, the management board decided to increase the basic contribution by 4 percentage points as of 1 January 2021. In the meantime, we are discussing with our sectors and clients the options that are available for the coming years: increase the contribution for the scheme, economise the scheme, agree on a contribution ceiling or switch to a defined contribution scheme. 
How will Pensioenfonds PGB inform my company about the new pension?
We held a conference on the new pension system in 2020. This was on 3 March 2020. You can find information on this here. Since then, the various parties involved in the elaboration of the pension agreement have applied changes to the design of the new system. The ‘new contract’ therefore looks different than previously thought. A number of social partners have in the meantime been informed about this through a sector committee at Pensioenfonds PGB. In addition, we had several informal digital lunch sessions in the summer and autumn of 2020 to catch up with interested employers. Such sessions will take place again in 2021. If you want to sign up for this, please send an email to communicatie@pensioenfondspgb.nl. Together with the Federation of the Dutch Pension Funds, Pensioenfonds PGB responded to the draft bill Future of Pensions that was published at the end of 2020. Pensioenfonds PGB itself has also responded separately. It is now up to the government to deal with these responses and draw up a final bill. Meanwhile, we continue to engage with you and share information with you through sector committee meetings, relationship management colleagues, digital newsletters and our website. In the meantime, would you like to respond or contribute your ideas to us? If so, please contact us at communicatie@pensioenfondspgb.nl.
Is it certain that the new pension will be introduced?
There is no absolute certainty. But the signs that the new pension will be introduced are clear. The government has translated the pension agreement between the social partners (employers and employees) into a draft bill. At the end of 2020, the government published this bill. Everyone was invited to comment to it. Pensioenfonds PGB has done this, too. Taking into account all the responses, the government will work to make a final bill. There may still be bumps on the road to the new pension, for example due to the Lower House elections in March 2021. If the Lower House decides to leave the pension dossier for the next cabinet, this will have consequences for the date on which the new system comes into effect.
Frequently asked questions about the pension agreement and the AOW (state pension)

1. What will actually happen with the AOW (state pension) age?
The increase in the AOW age will be frozen at 66 years and 4 months for the next 2 years. The government has decided this. Thereafter, the AOW age will rise to 66 years and 7 months in 2022, 66 years and 10 months in 2023 and 67 years in 2024. 

​Year
​Former AOW age
New AOW age
​2019
​66 years and 4 months
​66 years and 4 months
​2020
​66 years and 8 months
​66 years and 4 months
​2021
​67 years
​66 years and 4 months
​2022
​67 years and 3 months
​66 years and 7 months
​2023
67 years and 3 months
​66 years and 10 months
​2024
​67 years and 3 months
​67 years

The government set the AOW age at 67 for 2025. 

For more information, please visit svb.nl.

2. Has my new AOW age already been processed on mijnpensioenoverzicht.nl and mijnpgbpensioen.nl?
Yes, the consequences of the AOW age for your pension have been processed by us on mijnpgbpensioen.nl. 

On mijnpensioenoverzicht.nl the consequences of the new AOW age are expected to be processed by mid-February 2020.

Do you want to retire before your AOW age? You can apply for your pension via mijnpgbpensioen.nl.
Do you have any questions? If so, you can contact customer service on 
020 541 82 00 or send us an email at ks@pensioenfondspgb.nl

3. I am already retired and receive a bridging pension until the AOW date; what does the new AOW age mean for me?
Did you retire earlier than your AOW date? And have you opted for a temporary bridging pension until your AOW date? Then your AOW bridging pension will continue until your former AOW date. As a result of the new Act, your AOW state pension will start earlier. This will give you a higher income for a number of months. This may have tax consequences, for example for the benefits (toeslagen) you receive. As of 1 January 2020, it is possible to adjust the amount of your pension benefit. 

Would you like to know what options are available to you? If so, please do not hesitate to contact us. We will be pleased to help you.
4. Will I receive less pension if I retire earlier due to the earlier AOW age?
If you retire earlier because of the AOW age having been brought forward, you will build up pension during a shorter period. You will also pay less in contributions for your pension. This is because you no longer accrue any pension after you reach your AOW age. Therefore, you miss out on this accrual compared to your pension before the AOW age had been brought forward. On the other hand, you will receive AOW earlier. Your expected pension will decrease due to the earlier AOW age. What difference this makes in euros depends on your pension accrual and the number of months you retire early. 

There is a second reason why your expected annual pension will decrease due to the earlier AOW age. Like most people, you probably want to have your pension paid out from the month of your AOW date. The earlier it is, the sooner we will start paying out your pension. If you retire early, we have to pay you a pension over a longer period. So the pot of money to accommodate your right to a pension must be spread out over a longer period of time. Because we continue to assume the same average life expectancy. As a result, you will receive a lower amount per year from us, but we will pay it out for longer. Therefore, according to our expectations, you will not lose out on any money. 

5. What is the difference if I get my pension paid out earlier?
The lower your income, the more important the AOW is for your income after retirement. The higher your income, the more important your pension is for your income after retirement. It is also important to know which scheme you have, because the higher the percentage of your pension accrual, the greater the difference will be. And it is important what you have already built up in pension, and how much earlier you want us to pay out your pension. Below, you will find two calculation examples based on the earliest date of retiring due to the statutorily changed AOW age:

You have a salary of € 50,000. You accrue a pension of 1.822% on your salary above € 14,500*. If you retire 8 months early, you will miss an accrual with us of about € 431 over those 8 months. Your annual pension to be accrued is therefore € 431 lower.

You have an income of € 36,000. You accrue a pension of 1.75% on your salary above € 15,053*. If you retire 8 months early, you will miss an accrual with us of about € 244 over those 8 months. Your annual pension to be accrued is therefore € 244 lower.

Please note: in both cases ìt concerns a right to a pension per year to be paid from the age of 68. As of 1 January 2018, this is the standard retirement age we use to determine your annual pension accrual.

You will not retire at 68. Therefore, we recalculate your total accrued pension to your actual retirement date. In our participant portal, the sample calculations are based on your AOW date. If you retire 8 months earlier, we have to pay your pension for 8 months longer. This will reduce the annual pension amount by about 3.8%. If you retire 5 months earlier, the difference is about 2.4%. At 4 months the difference is about 1.9% and at 3 months 1.5%. The percentage reduction per year is in addition to the missed accrual. This percentage reduction will be returned to you through the extension of your benefit by 8, 5, 4 or 3 months. 

Please note: Due to the earlier date of your AOW age, you will receive your AOW earlier and for a longer period. This provides you with a benefit of € 844 gross per month (based on the current AOW amount). 

* You do not accrue any pension on a portion of your gross salary. This is because you will also receive an AOW benefit from the state later. For this reason we deduct an amount from your salary. This is called the state pension offset. You accrue pension each year on the remaining amount.
6. Can I have my pension paid out from my original AOW age?
You can postpone the payment of your pension until 5 years after your AOW date. The longer you wait to receive your pension, the higher the annual amount you will receive from us. You can also choose to have a lower amount paid out first and then a higher amount, or vice versa. There are several choices.
7. Will my pension scheme change because of the pension agreement?
The way you build up your pension will be different in the new system. This is mainly due to the distribution between young and older participants. Exactly what your scheme will look like depends on the agreements made by the social partners. From 2026 onwards, pension is only accrued through a pension capital (defined contribution scheme). The amount of contribution to be paid into your capital is agreed in advance. Your pension capital moves with the economy. When things are going badly, the pension capital decreases and when things are going well, the pension capital increases. Your accrued capital determines the amount of your pension when you retire. Each year, you get an estimate of your future pension, with an optimistic expectation, a pessimistic expectation and an in-between expectation.
8. Will my pension increase sooner in the new situation?
Under the new pension system it will be possible to increase pensions earlier than is currently possible. This means that pensions can be increased earlier in order to cushion the increased cost of living. This is because in the new pension system we do not need to maintain a reserve buffer. Is the coverage ratio higher than 100%? Then we can increase your pension based on the agreement as it stands. Many things still need to be worked out. In the new pension system, we also have to reduce pensions earlier. More information on this can be found at question 10.
9. Will my pension increase next year?
No, that is not our expectation. The agreement that is now on the table is an outline agreement. Many things still need to be worked out. It will take several years before a new legal framework is in place.
10. Will my pension decrease sooner in the new situation?
Pensions will move more in line with the economy. This increases the likelihood of reductions. As soon as the coverage level falls below 100%, we have to reduce it in the new system. This is not the case under the present rules. This reduction may be spread over a maximum of 10 years. This means that pensions can be reduced in steps at an earlier stage if there is financial head wind. The details are still to be worked out however. It will take at least three years before the new system can be implemented. Under the new pension it will also be possible to increase pensions at an earlier stage than is currently possible. More information on this can be found at question 9.
Is your question not included?
If so, please do not hesitate to contact us. We will be pleased to help you.

We update this page regularly
Many matters from the pension agreement still have to be worked out in legislation and regulations. We will, of course, be monitoring this for you. If necessary, we will adjust this page accordingly.