How we’re switching
All pensions will be transitioned to the new rules, Your pension increased as well. Of course, this process will be managed with the utmost care and fairness. See who is involved, how the switch works and what you can expect at each stage.
These steps have already been taken
The old pension rules were becoming restrictive. People now change jobs more often, go part-time for a while or become self-employed. And when the economy is doing well, pensions tend not to increase. To address these issues, employers, employees and the government agreed to implement new rules. They signed what is known as the pension agreement in 2019.
The pension agreement was elaborated into the draft Future of Pensions Act (Wet toekomst pensioenen). In December 2022, the House of Representatives approved the Act, followed by the Senate in May 2023.
The new pension rules officially came into force on 1 July 2023. Pension funds have several years to make the transition, with a deadline set by the Minister for 1 January 2028.
Employee and employer associations in our sector – referred to as the social partners – engaged in talks to decide on the structure of PME’s new pension scheme and the transition process. Every decision was carefully assessed for its impact on individuals who are currently accruing a pension, used to a accrue a pension or are receiving a pension. In March 2024, social partners established the main principles for the new pension scheme.
The social partners developed their agreements into a draft transition plan. The plan details how the new scheme will work, what choices were made, and why.
The consultation phase began, allowing stakeholders to share their views through associations. VGPME, an interest group for PME pension recipients, voiced its feedback on behalf of its members, also on behalf of VG-Océ and VG Siemens.
The draft plan was then presented to the members of the social partners. The members are people from the sector, just like you. They are employees from all kinds of different companies. Members also include retired persons. In November 2024, the members of the social partners gave their approval. The finalised transition plan was handed over to PME.
PME will begin implementing the agreements in the transitieplan (in Dutch) (pdf). We will take a close look at whether the arrangements are balanced, realistic and feasible. We will then prepare the administration and systems for the future.
These steps will be taken next
PME carefully assesses whether the arrangements in the transition plan (pdf, in Dutch) are balanced, realistic and feasible. We will then prepare the administration and systems for the future.
Before the switch, you will receive a personalised overview from us. This will contain a comparison of your pension amounts under the old and new schemes. So, you will see the differences for you personally. These amounts will still be an estimate, but they will already give you a good idea.
We are targeting a switch on 1 January 2027, provided all preparations are complete for a smooth handover. This includes finalising pension regulations, agreements, administrative systems, investments and communication. In short, a complicated job. Once ready, the old scheme will end and the new scheme will start. Everyone’s pension will be converted to the new scheme.
You will again receive a personal communication from us. This will contain the definitive calculation of your pension amounts. If there are any differences compared to the estimate you received at the end of 2026, we will explain them.
How we will convert the pensions
PME manages a large pot of pension money worth tens of billions of euros. This includes the money of everyone who has a pension with PME. We will convert this large pot on 1 January 2027. Everyone will have their own pension pot. And so will you.
How will the scheme be converted? We will tell you all about it.
A small part of the money will be needed to cover PME’s equity and for costs. This will enable us to keep the fund running and to continue to manage the pensions well.
Part of the money goes to the solidarity reserve. The main purpose of this reserve is to protect the pensions that are already being paid out.
We will maintain your expected pension as much as possible. The aim is that, immediately after the conversion, you will therefore be able to count on at least as much pension as immediately before the conversion. The amount needed for this will be transferred to your pension pot.
The new scheme works out favourably for most people. However, there will be a disadvantage for others. They are expected to accrue less pension in the future than under the old scheme. This is why, at the time of the switch, these people will receive an extra one-off amount in their pension pot. This amount is also known as compensation. This will enable us to maintain their expected pension as much as possible as well.
If there is money left over after the steps above, we will distribute it across all pension pots. This means that your pension will increase. How much extra you will receive depends on our financial health at the time of the switch.
What role will the financial health of PME play?
We would prefer to carry out all the above points. Will that actually work? This will depend on our current funding ratio at the time of conversion. The funding ratio reflects the fund’s financial health under the old rules. It shows the relationship between the money managed by PME and the money needed to pay out all pensions now and in the future. The higher the funding ratio at the switch, the more we can do.
Suppose the funding ratio is…
The objectives above will not be feasible. This is, of course, highly undesirable. In that case, the social partners will consult with each other again. In principle, the new scheme will then be postponed and we will continue with the old scheme until 1 January 2028 at the latest.
We will fill the solidarity reserve to the minimum level. Employees who are disadvantaged by the transfer will be compensated in part. The monthly pension remains the same for people receiving a pension.
We will fill the solidarity reserve to the minimum level. Employees who are disadvantaged by the transfer will be increasingly compensated for this. If the funding ratio is 106%, they will receive full compensation. The monthly pension remains the same for people receiving a pension.
We will fill the solidarity reserve a little more. If the funding ratio is 110%, we will reach the desired level. People who are disadvantaged by the switch will receive full compensation. For people receiving a pension, the monthly pension increases slightly.
We will fill the solidarity reserve even more. If the funding ratio is 120%, the reserve is completely filled. People who are disadvantaged by the switch will receive full compensation. For people receiving a pension, the monthly pension increases by several percentage points.
We will be able to carry out all the above points. The surplus will be used to increase the personal pension assets of all members. As a result, the monthly pension increases sharply for people who receive a pension.
If this situation arises, the social partners will consult with each other again. They will then check whether the arrangements made in the plan are still as fair as possible for everyone.
Do you want information about our current financial health? View our funding ratio.
Stay updated
We’ll keep you informed about the new pension rules through various channels, including this website, webinars and the newsletter. Once we have details specific to your situation, you will receive a personal update.
The easiest way to stay informed is by logging in and sharing your email address. Important updates will be sent directly to your inbox.
Are the agreements as fair as possible?
It is essential that the agreements are as fair as possible for everyone. No group may gain or lose much more from the transfer than another group. Everyone must be equal in this respect.
How do you determine which choice is as fair as possible for everyone and which is not? The social partners have had all kinds of calculations performed and weighed up interests to work this out. They looked at the implications for younger people and for older people. They considered the consequences for people who are building up pensions, people who are drawing pensions, people who have left the sector and people who may yet do so in the years to come. And they asked a lot of questions. Will the scheme actually work as expected? What are the risks? How can we cushion these together? And who might we need to arrange something extra for? This is how they weighed up all the implications of every possible option, until they found the best balance.
The calculations show that the arrangements are indeed as fair as possible. No group has a major advantage or disadvantage compared to any other group. The PME Board will monitor this very closely, as will PME’s Accountability Body and our regulator De Nederlandsche Bank.
Why we don't keep the old pension scheme
The social partners in the sector have agreed on the new pension scheme. They have chosen not to keep the old pension scheme. We will therefore convert the pensions from before 1 January 2027 to the new pension scheme. If we were to nevertheless keep the old scheme,
- you would have a lower expected pension under the old scheme;
- you would have a lower expected pension under the new scheme;
- there would be no money for compensation from the buffer;
- it would be more difficult to collectively deal with setbacks and windfalls;
- it would be more difficult to gain insight into your pension;
- and the costs for the administration of the pension scheme would be higher
Would you like to know more? Read more about why we don’t keep the old pension scheme.