Pension Agreement

Checked on 19 December 2019

Pension Agreement

What does it mean for you?

The Pension Agreement is a topic that is widely discussed in recent months; You must have heard or read about it in the media. And for the time being the subject remains topical, because many things still have to be worked out at national level. Various participants asked us what role Philips Pensioenfonds plays in this national discussion and what the Fund thinks of the agreement.

Read more?

On page 4 of our magazine Generaties we wrote about the Pension Agreement and what this means for you.

Go to Generaties (in Dutch)

Some important points regarding the Pension Agreement

Backgrounds of the Pension Agreement

Pension Accrual

Young people accrue more pension than older people

At the moment, participants with the same salary accrue the same amount of pension each year. According to the Pension Agreement, the premium must be used in a different way. As a result, young people accrue more pension than older people. This means that everyone who is already accruing a pension has a disadvantage in the transition to a new pension system.

More about Pension accrual

Increasing / Lowering

No more financial buffer

The Pension Agreement stipulates that pension funds no longer need to maintain a financial buffer and can already increase the pensions with indexation at a funding ratio above 100%. However, the chance that your pension must be reduced also increases.

More about Increasing / Lowering

Type of pension scheme

All pension plans become premium agreements

All pension plans become so-called premium agreements: the employer no longer promises a pension entitlement, but a premium. The amount of pension that can be purchased with this depends in particular on the interest. For many participants in pension schemes, the pension therefore becomes more uncertain. However, not much will change for you as a participant of Philips Pensioenfonds on this point.

More about Type of pension scheme

Questions and answers

  • What is the Pension Agreement about?

    Trade unions, employers and the government signed a Pension Agreement earlier this year. This agreement is not only about the AOW pension that you receive from the government, but also about the pension that is accrued through the employer. Such as your pension with Philips Pensioenfonds. Pension funds are not a party in this agreement. But it is clear that the agreement can have major consequences for everyone who is a member of a pension fund, whether as a pension builder, pension recipient or holder of a non-contributory policy. We follow developments closely and we also try to influence them, in particular through the Pensioenfederatie. That is an organization of Dutch pension funds.

  • What does Philips Pensioenfonds consider important in the implementation of the Pension Agreement?

    The Pension Agreement must ultimately lead to legislation. That legislation then applies to all pension funds in the Netherlands. But there are major differences between funds. For example, there are funds with a relatively high funding ratio and funds with a lower funding ratio. And there are funds with a relatively young population, but also funds with many pensioners, such as Philips Pensioenfonds. We are committed to taking these differences into account when drawing up the Pension Agreement. If that does not happen, it may, for example, lead to a pension fund being forced to take measures that are positive for part of the population, but less positive or even negative for another part. That cannot be the intention. Every pension fund board must be able to take decisions in which the interests of all members of the relevant pension fund are taken into account in a balanced way.

  • When do you as a participant notice something about the Pension Agreement?

    The current agreement is an outline agreement. A steering group of employers, employees and the government is currently working on the elaboration of the agreement. The aim is for the steering group to be ready in the spring of 2020. Legislation is foreseen as of January 1, 2022.
    Therefore, in the short term you will not notice the Pension Agreement. If the agreement will lead to legislation, it will have consequences for you. The consequences are not only dependent on the choices that are made during the elaboration of the Pension Agreement, but also on the decision-making of the Board of the Fund as a result thereof. Of course, we cannot say anything about this at the moment. We will keep you informed of further developments.