Measure by Dutch Government regarding pensions

Recently, the (newly formed) Dutch Government announced its measure for the coming years. One of the items on their agenda is the limitation of the fiscal treatment of pensions.

Recently, the (newly formed) Dutch Government announced its measure for the coming years. One of the items on their agenda is the limitation of the fiscal treatment of pensions. 

For now (the measures are not final yet), the following changes have been announced:

  1. As of 2014, the pension age will be increased to 67;
  2. A reduction of pension accruals rates. Currently, the rate equals 2.25% for an average pay pension scheme and 2% for a final pay pension scheme. For 2015, the rates will be 1.75% and 1.5%. It is as yet unsure what the percentages will be for 2014;|
  3. Pension accruals exceeding € 100,000 will no longer be tax exempt.

Please note that in the case of having a foreign pension plan in place for a Dutch employee, rather than a Dutch plan, the foreign plan must meet the Dutch standards in order to be able to apply tax exemption on the premiums paid. This is already the case, but will be increasingly important in the coming years.

If you have any questions, please do not hesitate to contact us.