When it comes to employee financial arrangements, clarity is essential. The Future of Pensions Act is already in effect, and by Jan. 1, 2028, all plans must be adjusted accordingly. Sounds clear, right? In practice, however, the transition turns out to be more complex than expected.
Although the law has already taken effect, many employers are still delaying the transition. However, this can be a risky choice. Waiting until the last moment increases the chance of a hurried and less optimal implementation. Therefore, it is wise to take steps now.
Why take action now?
If you as an employer are compulsorily insured for retirement with a Pension Fund then you will have to follow the Pension Fund's planning but an employer who has placed the pension plan with an insurer or PPI must take action itself. 1-1-2028 still seems far away and employers think there is still plenty of time to switch. In reality, delay carries several risks:
- Pressure on administrative processes - Insurers are busy adapting their systems to the new regulations. Those who wait too long risk ending up at the back of the queue, which can lead to delays and less smooth implementation.
- Limited availability of consultants - The demand for specialist advice is growing rapidly. By switching now, you avoid not having access to the right expertise later.
- Unexpected costs and risks - Last-minute changes often entail higher costs and increase the likelihood of implementation errors. A structured approach prevents unnecessary financial and legal complications.
Employers who act proactively ensure a timely and well-organized transition with minimal impact on their organization and employees.
The impact of transitional arrangements
Several options exist within the transitional law, but it is crucial to properly identify the consequences. One concern is that different arrangements within an organization can lead to perceptions of inequality among employees. In the current tight labor market, as an employer you want to maintain transparency and trust.
Clear and timely communication towards employees is therefore of great importance. By entering into dialogue now and providing regular information about the changes, you prevent unrest within the organization. Well-informed employees understand the impact of the changes better and feel more confident about their financial future.
Knowledge sharing and support
To help employers keep a grip on this transition, we regularly organize knowledge sessions in which we discuss the developments, choices and possible consequences. During these sessions, our specialists share practical insights and answer questions about the impact of the changes on your organization. We also share experiences of projects we have already completed and which choices were made why.
In addition, in recent years we have gained a lot of experience in making employees more aware of their financial future. For example, we recently organized the Pension Three Days, an informative event in which our colleagues were given the opportunity to better understand their situation and make informed choices. This concept is based on successful initiatives within the sector and helps employees gain insight into their future in an approachable way. We can also organize this for your company.
Taking action pays off
The upcoming changes bring both challenges and opportunities. By starting now with a structured approach, you will ensure that your organization is ready in time for the future. This prevents unnecessary stress and ensures that you, as an employer, comply with the new guidelines without causing problems at the last minute.
Want to know more about how to make this transition go smoothly? Then sign up for one of our knowledge sessions, where we will take you step by step through the process and provide you with practical advice.
Hans Huizing, Director of Employee Benefits at Schouten Zekerheid
