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Sector flags issues with value transfer of small pension rights
Several public entities have urged the Minister of Social Affairs and Employment to change recent legislation on small pension rights before 1 January 2020. In a previous edition of In context, we reported on this new legislation, which allows pension providers to automatically transfer the value of “new” small pension rights (arising after 1 January 2018). As to automatic value transfer of “existing” small pension rights – that is, rights arising before 1 January 2018 – pension providers have the automatic transfer right as of 1 January 2020. The Minister was requested to implement two changes: (1) allow the automatic value transfer of small pension rights due to the termination of the administration agreement, and (2) enable net pension rights, which cannot be transferred automatically, to be redeemed or transferred at another point in time. These changes should reduce administrative costs and preserve more pension rights.