Main principles established for new pension system
The Netherlands has new rules for pensions. We expect PME to switch to these new rules on 1 January 2026. Employer and employee organisations in our sector (also called social partners) determine how this will happen. They have made arrangements on the main topics.
The social partners have established the main principles of pensions at PME after the new system comes into force. These are the same organisations that also make agreements about other employment conditions in our sector. Such as about wages, overtime and days off.
What has been agreed?
Pension funds such as PME will be obliged to switch to the new pension system. In that new system, it is clear how much money goes to your pension. We invest that money, just like we are doing now. How much pension will you get? That depends on the contribution, the return on investments and the interest rate when you retire.
There are no promises as to the amount of your pension. But it is expected that it will be easier to increase pensions than it is at present.
The social partners have opted for a solidarity scheme. The central principle of this type of arrangement is: together for a good pension. In short:
- The pension fund invests everyone's money. Nothing changes in this respect. You do not have to make any complicated investment choices yourself.
- We will continue to share key risks. That gives peace of mind and stability.
- Additional guarantees have been built in for everyone who receives a pension. For example, the fund can use a reserve to prevent pensions from decreasing.
You will get a pension for as long as you live. Your family will get a benefit from us if you pass away (partner and orphan's pension). And you will continue to accrue pension if you become incapacitated for work.
The contribution also remains the same. You and your employer save as much for your pension as you are doing now.
The social partners want employees to be able to count on a good pension. When you retire, you should receive approximately 80 percent of the average salary during your working life.
This pension goal is the same as the ambition in the current system. But the chances of achieving the pension goal will be greater with the new system.
The social partners have agreed that you will also accrue pension over your shift work allowance. There will be a transitional arrangement for this. After five years, the allowance will count fully towards your pension. Are you already accruing pension over the shift work allowance? Then this will not change.
- Year 1 (2026): 1/5 of the Collective Labour Agreement shift work allowance
- Year 2 (2027): 2/5 of the Collective Labour Agreement shift work allowance
- Year 3 (2028): 3/5 of the Collective Labour Agreement shift work allowance
- Year 4 (2029): 4/5 of the Collective Labour Agreement shift work allowance
- Year 5 (2030): 5/5 of the Collective Labour Agreement shift work allowance
Currently, the agreed Collective Labour Agreement shift work allowance is 13.3 percent for a two-shift system and 15.0 percent for a system of three or more shifts. You accrue pension over these percentages as a maximum.
If you pass away, your partner will get a benefit from us: the partner pension, just like this is the case now. This is how it will work in the new system:
- As long as you work in this sector
If you pass away, your partner will get 20 percent of your salary (up to the maximum applicable in this system). In addition, your partner will get 5,000 euros a year until they reach state retirement age. The latter amount increases every year with wages in the sector. If you leave the sector, partner pension is, in principle, no longer insured. In that case, check what has been arranged with your new employer (if you have one).
- When you retire
Are you retiring? Then you choose together which part is for you, and what share is for your partner if you die. The standard amount of the partner pension is 50 percent of your own pension. Just like it is now. But you can also make a different choice.
If you pass away, your children will get a benefit from us: the orphan's pension, just like this is the case now. This is how it will work in the new system:
- If you pass away, each child will get 10 percent of your salary (up to the maximum applicable in this system). If your partner has also passed away, each child will get 20 percent.
- Payments will stop as soon as your child turns 25.
- If you leave the sector, orphan's pension is, in principle, no longer insured. In that case, check what has been arranged with your new employer (if you have one).
Who are the social partners?
The employer and employee organisations represented in the Raad van Overleg in de Metalektro (ROM), the advisory board for the metals and electrical engineering sector:
• FME (for employers)
• FNV Metaal (for employees)
• CNV Vakmensen (for employees)
• De Unie (for employees)
• VHP2 (for employees)
What's next?
The social partners will work out their agreements in a so-called draft transition plan. After that, there will be room for the statutory right to be heard. This right allows interested parties to share their views with the social partners through an association. VGPME, an interest group for people who receive a pension from PME, has registered for this.
The social partners will then present the draft transition plan to their members for approval. Once agreement has been reached, the final transition plan will be presented to PME.
What will PME do?
PME will set to work on the agreements from the transition plan. We will carefully examine whether the agreements are feasible and practicable. We then prepare the pension administration and systems for the future. We expect to give you an estimate of your pension under the new rules by the end of 2025. And on 1 January 2026 we will actually switch to the new system.
Eric Uijen, chairman of the executive board of PME: “The social partners have discussed the matter at length in recent months. This required the utmost care, as it concerns the pensions of a lot of people. I am happy with the steps taken so far and am looking forward to the transition plan. Armed with that plan, we can start working for everyone with a pension at PME.”
Would you like to know more?
Read more about the new pension rules and stay informed. You will hear from us as soon as we have received the final transition plan.