Philips and the unions have agreed on the general form of the pension plan under the Dutch Future of Pensions Act (Wet toekomst pensioenen). The key point on which they have agreed is that we will switch to a solidarity-based contribution plan in 2026. Philips Pensioenfonds will implement this plan for all pension beneficiaries, active members and policyholders of Philips Pensioenfonds. Preparations for the new pension plan began back in 2021. Now that is has been decided what form the pension plan will take, Philips Pensioenfonds can focus its further preparations entirely on implementing that pension plan in 2026.
A new pension plan: why?
The Dutch Future of Pensions Act, which came into law on 1 July 2023, sets out rules for all pension plans in the Netherlands. By 1 January 2028 at the latest, every pension plan must be compliant with the new legal pension rules. The arrangements made by Philips and the unions represent an important step on the road towards the future pension plan.
What are the features of the solidarity-based contribution plan?
The solidarity-based contribution plan is a form of pension plan designed by the legislature to make pensions more personal, while still retaining elements of solidarity. So what does that mean? The most important features of a solidarity-based contribution plan are as follows:
- Although each member has their own personal pension savings, they do not make their own investment decisions.
- For policyholders and members actively accruing their pension, the investment policy is linked to their age. This means taking more risk for younger members, who have a longer period to accrue their pension. The closer a member is to their retirement age, the less risk we will take. For pension beneficiaries, a uniform investment policy is used.
- The pension savings are all invested collectively, as they are with the existing pension plan.
- Besides the personal pension savings, we will also have a collective ‘reserve’ that we can draw on to avoid lowering the pensions of pension beneficiaries. This reserve is called the ‘solidarity reserve’.
Additional options for active members working for Philips
A new feature for active members is the option of paying in additional contributions for their pension or (for active members who work for Philips) to contribute less if they earn more than a particular salary threshold. This is an arrangement that Philips has agreed with the unions, on top of the decision about the solidarity defined contribution plan. It has not been decided yet whether the second option will also be available to active members working for Signify or Versuni.
More information?
For further information, answers to some of the frequently asked questions en video's, visit our website about the new pension rules.
Go to new pension rulesRole of the social partners and Philips Pensioenfonds
Who decides what type of pension plan is adopted?
The decision on what type of contract to choose is made by the social partners: the employers and the unions, i.e. management and labour. They decide what type of pension contract is chosen and how, in general terms, it is given shape. They are also responsible for deciding whether to ask the pension fund to transfer the pensions that have already been accrued to the new pension plan, in a process called ‘entitlement conversion’ (invaren).
What is the role of Philips Pensioenfonds?
Philips Pensioenfonds assists the social partners in making their choices about the new pension plan, by running calculations and offering advice. At the same time, the Board of Trustees also has to make decisions of its own about the new pension plan and how we make the switch. An important decision will be the response to the request from the social partners for entitlement conversion, as described above. Philips Pensioenfonds will also need to decide whether the new pension plan is practicable and what a proper balance is in the switch overall.