The Future of Pensions Act and the role of the works council

According to Section 27 of the Works Councils Act (WOR), the Works Council has the right to consent to decisions on pension plans. This means that an employer cannot impose a change unilaterally.

Under the WTP, this right of consent also applies to the transition plan. This contains the starting points, effects and possible compensation measures of the transition to the new system. Without the consent of the Works Council, implementation is therefore not possible.

Note: if the pension plan is set out in a collective bargaining agreement, the process goes through the unions. The Works Council is then in principle not required to give its consent, unless additional agreements are made outside the collective agreement.

Respectability: not always a transition plan needed

The WTP has a possibility of respectability. This means that existing schemes may continue to exist for current participants under certain conditions.

• If you choose this as an employer, then a transition plan is not formally required.
• Nevertheless, careful documentation and communication toward the Works Council and employees remains necessary.
• For new employees, respectability does not apply: they can only participate in a WTp-compliant premium plan from 2028.
  
  

Practical concerns for employers

• Involve the OR in a timely manner
  Start consultations as early as possible to avoid delays and resistance.
• Document choices well
  Whether you choose transition or deference: document the rationale carefully.
• Communicate clearly with employees
  Transparency about consequences and possible compensation is essential for support.
• Allow for influx of new employees
  They must always participate in a Wtp-compliant premium plan.
  
  

Conclusion: start on time and avoid risks

The Wtp requires careful decision-making and close cooperation with the Works Council. The right of consent means that employees have an important voice in this process through their Works Council. Even with deference, (partial) transition often occurs in practice anyway.

At Schouten Zekerheid , we advise employers to start this process well in advance. That way you limit legal risks, create support and ensure a smooth transition to the new pension system.