Regulations for employers’ pension plans are changing in the Netherlands and businesses should now begin working with their advisors to adjust to the new rules before the end of 2014. The new changes will need to be incorporated in to plan rules by July 1, 2015.
The four specific regulatory changes that are expected to be approved and clarified this fall include:
- A cap of EUR 100,000 on the maximum pensionable salary (less state pension offset) provided by an occupational pension plan.
- A reduction in the maximum pension accrual rates to 1.875 percent for average pay plans and to 1.657 percent for final pay plans.
- Additional reductions to tax-efficient contribution maximums.
- A new net salary (after-tax) pension vehicle for those who earn more than EUR 100,000.
Given these changes, it is critical for organizations to begin this process as soon as possible.
Read the rest of our market update to review the points above and learn what additional items employers should pay attention to prior to the end of the calendar year.