New rules for pensions

Before Philips Pensioenfonds adopts the future pension plan under the new pension rules, you will receive information explaining what this will mean for you personally. The new pension plan should start applying to you by 1 January 2028 at the latest. Your information will become more and more personalised as the moment of the switch approaches. Until we can tell you how you personally will be affected, however, we will keep you updated about the process and the latest developments regarding the new pension rules. In addition, we can inform you in more general terms about what the new scheme is expected to mean for your future pension. You can read more about this in the edition of Generations that was published at the end of December 2024.

In general, it makes no difference whether you retire (early) just before or just after the transition. Since the social partners (your employer and trade unions) have requested the Fund to make use of the option of transferring in, the new pension rules will also apply to the pension already accrued and the pension that already started before the transition to the new pension scheme.

Retiring early does mean that you are no longer entitled to the compensation scheme. The following applies to this: the abolition of the average system only applies to future pension accrual. If you leave employment or retire before the transition, there is no future accrual and therefore no disadvantage for our Pension Fund from the abolition of the average system. In that case, there is also no right to compensation. As a participant, you are wise to take the compensation into account when deciding on your retirement age or date of retirement. You will only receive the compensation if you are accruing pension with Philips Pension Fund at the time of transition. This also applies if your pension accrual with us is continued due to disability.

For current pension beneficiaries, the ratio between the accrued retirement pension and survivor's pension remains unchanged. This also applies to participants with a survivor's pension that deviates from the standard percentage of 70%. The amount of the survivor's pension may deviate from this, for example due to different percentages in the past and/or individual choices made on the retirement date. If the retirement pension can be increased by distributing the buffer at the time of transition to the new pension scheme, the survivor's pension will be increased proportionally, so that the ratio between the retirement pension and the survivor's pension remains the same after the transition.

No, you will receive a pension as long as you live. You don't have to worry about running out of money for your pension.

On the retirement date, the annual pension is determined partly on the basis of life expectancy. This concerns the annual pension that a participant receives from his or her own pension capital. You might then expect the pension capital to have run out as soon as a participant has reached that life expectancy. If a participant becomes older than expected, this participant would no longer receive a pension from that moment on. That is of course not the intention.

The Future Pensions Act stipulates that this so-called longevity risk must be covered. This way there is also pension income if one grows older than expected. The remaining pension capitalof participants who die earlier than expected are distributed among the participants who live longer than expected. The supplementation of the pension capital as you become older therefore takes place annually and gradually and not only from the moment you have become older than expected.

This does not mean, however, that a participant does not run any longevity risk at all. If fewer participants die than expected, less pension capital will be available than necessary to supplement the pension capital of participants who live longer. This effect is relatively limited in our Fund, because the number of participants who die each year is fairly stable due to our size. Finally, if not fewer, but more participants die than expected, more pension capital will be available to supplement the pension capital of participants who live longer.

All pension schemes must comply with the pension rules laid down in the Future Pensions Act. Every employer must therefore, in consultation with the trade unions or other employee representation, make agreements about a new pension scheme that complies with this new law.

The main rule in the new law is also that the accrued and commenced pensions are also converted to the rules of the new pension system. In pension jargon, we then speak of 'invaren' (conversion). It is possible to deviate from the main rule if this would lead to a disproportionate disadvantage for certain groups of participants. In the case of Philips Pensioenfonds the trade unions and employers have requested the Fund to convert the accrued and commenced pensions to the new pension scheme.

The decision that is to be taken, will apply to all pensions in the current system. The law does not include the option to choose to switch to the new pension rules or to remain in the current system.

The Board of Philips Pensioenfonds, which also represents employees and pension beneficiairies, will assess the request from trade unions and employers and must still make a final decision on this. It is legally stipulated that there is no individual 'right of objection'. Instead, there is the right to be heard for the pensioners' associations and an enhanced right to advise for the Accountability Body. All interest groups are represented in the Accountability Body, just like on the Board.

Read more in the article about the decision making process.