News - Netherlands

Netherlands - March 2014

Dutch government publishes addendum on legislation concerning accrual of pension rights

On 20 January 2014, the Dutch government published an amendment to the proposals on new pension legislation.  It is generally expected that the parliament and the senate will approve this  amendment quickly and that the measures contained in it will be effective from 1 January 2015. The most important measures are as follows.

‘Premium guarantee’

The main objection against earlier proposals to decrease the  tax advantaged  accrual rates  in respect of pension rights, was that this would not result in a corresponding decrease in the level of pension premiums. The amendment includes a whopping nine measurements (premiewaarborgen) which should make sure that the decrease in the tax advantaged accrual rates results in a corresponding reduction in the level of pension premiums payable.

Accrual of pension rights

The reduced tax advantaged accrual rate  for pension schemes based on the average salary will be1.875% which would deliver an  annual retirement benefit of 75% of the average salary (assuming a  40 years working life). The reduced tax advantaged accrual rate for pension schemes based on the final salary will be 1.657% of the pensionable wage.  Furthermore, the pension premium for defined contribution schemes will be decreased accordingly  . As a result of the before mentioned adjustments, is most likely that most pension schemes have to be adjusted before 1 January 2015.

New pension product

The proposal to introduce a maximum pensionable salary of € 100.000 remains intact. For those who earn more than € 100.000, a new third pillar pension product (nettolijfrente oudedagsvoorziening) will be introduced.  This new pension vehicle enables employees to save an amount for their future retirement which is exempt from Personal Income Tax (box 3). However, premiums are not deductible for Personal Income Tax purposes.


Draft Pension Bill (in Dutch language)

For further information or to discuss the consequences of the above, please contact Bas Dieleman, on + 31 10 224 66 52at Loyens & Loeff Rotterdam -


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