What choices do I have when adjusting the pension scheme?

A good pension scheme can be of added value in attracting and retaining employees. This calls for considerate choices when designing your new pension scheme. 

The new pension system as a default has defined contribution schemes where the contribution in terms of premium percentage is independent of age (flat-rate). You can choose between various pension plans: solidarity or flexible premium plan and the premium benefit plan. These schemes differ in the way in which returns on investments and risks are distributed among plan members’ personal pension assets and differ in terms of collective buffers used. There is also a difference in the degree of freedom of choice and flexibility.

Do you already have a defined contribution scheme with a flat-rate contribution? Even then, you typically have to adjust elements of your  pension scheme in order to comply with the Future Pensions Act, for example provisions on the surviving dependant’s pension.

If you already have a defined contribution scheme with a contribution rate  that increases with age, you can choose to keep this scheme for your current employees. If you do so, for new employees you will need to arrange a second pension plan with a flat-rate contribution independent of age. Again, you typically have to adjust your surviving dependant’s pension for all employees, among other things, in order to comply with the Future Pensions Act.

It is important to consider carefully which scheme best suits your company and your employees. In doing so, you will have to make important choices regarding surviving dependant’s pension, the new defined contribution scheme and compensation for members who may be adversely affected by the change in your pension scheme. It is important to carefully balance the interests of the different categories of participants in the scheme. Balancing interests is important.