Bill on small pension rights: major changes for collective value transfers
The Dutch government recently submitted a bill on value transfer of small pension rights. The bill includes major changes for (internal) collective value transfers pursuant to the Pensions Act. These transfers relate to collective amendments made to the pension agreement in connection with the increased tax-related retirement age. Under certain conditions, the participants’ individual right of objection to value transfers, and the mandatory notification of value transfers to the Dutch Central Bank, will be abolished. This is a topical issue in the Netherlands, as the tax-related retirement age will increase from 67 to 68 from 1 January 2018. According to this proposed amendment of the Pensions Act, pension providers will be able to unilaterally adjust the commencing date of pension entitlements to match the pension age in income tax legislation, which will rise. For this reason, it is intended that the bill will enter into effect from 1 January 2018.
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