Effective January 1, 2018, the retirement age for occupational retirement plans in the Netherlands will increase from age 67 to 68. Depending on their current benefit designs, the new retirement age may result in some plans exceeding the maximum level of tax-qualified benefit accrual, unless they take action before 2018 to avoid this outcome.
Defined Contribution Plans (DC)
For defined contribution (DC) plan contribution rates, as a percentage of covered earnings, are being adjusted from January 1, 2018 (these announced rates are preliminary but are not expected to change). Following are the maximum tax-qualified rates, based on a 3% annual interest assumption:
| Age employee | Maximum contribution of pensionbase 3% interest |
| 20-24 | 7,70% |
| 25-29 | 8,90% |
| 30-34 | 10,30% |
| 35-39 | 12,00% |
| 40-44 | 13,90% |
| 45-49 | 16,20% |
| 50-54 | 18,90% |
| 55-59 | 22,30% |
| 60-64 | 26,40% |
| 65-68 | 30,50% |
Defined Benefit Plans (DB)
The statutory maximum annual benefit accrual percentages for defined benefit (DB) plans will remain unchanged, but as a result of the target retirement age change they will be linked with higher retirement ages. The retirement ages and corresponding DB maximum accrual rates, effective January 1, 2018, are as follows:
| Retirement age | Maximum accrual rate Career average pay DB Plan | Maximum accrual rate Final pay DB Plan |
| 68 | 1,88% | 1,66% |
| 67 | 1,74% | 1,54% |
| 66 | 1,61% | 1,43% |
| 64 | 1,50% | 1,33% |
Consent of Work Council and Employees
The increase in retirement age is a call for action for employers, as retirement plans are part of the Employment Conditions. Any changes in these schemes (including mandatory legislative changes) should therefore be discussed with the Works Council and Employees.
Publicatiedatum: 28 december 2017