When should I adjust my pension scheme?

By 1 January 2028, the process of adjusting your pension scheme to the Future Pensions Act must be finished. The transition to the new pension system has a set process which requires your attention. You will have to make several choices regarding  the new pension scheme as well as the transition into it. In doing so, you have to decide on major issues such as choice of contract type, premium rate, transition date and possible compensation for incumbent employees.

An obvious moment to change your pension scheme is the end date of your current pension contract. This might for example be 31 December 2025 or 31 December 2026. Prolongating your current contract beyond its expiry date and up to December 2027 may by risky, as insurers and pension advisors may be fully booked and unable to assist you making the transition in time.

By 1 October 2027 latest, all choices for your new pension scheme must be completed with the consent of the works council/ staff representative body of your employees. Also, the transition plan, which contains all the choices and considerations made, must be ready by 1 October 2027, if you choose to change your pension scheme at the last possible moment (1 January 2028). If you choose to change your pension scheme by 1 January 2026, your transition plan must be finalized quite some time earlier, and be shared with your insurer or PPI.  Therefore, you should start in time.

Help in making the right choices: independent advice

Adjusting your pension scheme involves complex issues. It is therefore advisable to start this process as soon as possible with your pensions advisor, who can help you make the right choices. You are obliged to use a pensions advisor with a Wft-certificate for this process. Keep in mind that the whole process may well take a year, so consulting with your pensions advisor in time is necessary.