The second pillar is the occupational pension, which represents the vast majority of workers during their working lives. Employees and employers make the contribution agreed in the collective agreements to a pension fund to which the employer is affiliated. It can be a pension fund for all businesses in a given sector, a fund that works for a particular company, or a fund for a group of people working in certain (often medical) occupations such as doctors, physiotherapists and obstetricians. The second pillar of retirement is an employment benefit. Participation in the industrial pension fund may be made compulsory by the Minister of Social Affairs and Employment for the entire sector. Participation has been made mandatory for most pension funds in the sector. For expats, there are the following conditions before considering a pension plan. For example, in 2017, the maximum salary for business-related pensions is EUR 103,317. For expatriates, pension insurance coverage could be legally covered as a “pension” or rather as an “insurance” and be forced to move with the expatriate to any new country or stay in a country.
The transfer of pension capital from one Dutch pension scheme to another country is only possible if, in the following country, the pension scheme has the same costly requirements as the Dutch pension scheme. Although pension funds may be linked to a particular business or sector, they are legally required to remain legally and financially independent and must be not-for-profit organizations. In this way, pension funds are protected when a related company has financial problems. In 2016, a new category of pension funds was put on the market: the General Pension Fund (GPF). The peculiarity of a GPF is that it can simultaneously manage pensions for several employers and take over the management of annuities with other pension funds. For example, if they no longer exist and “liquidate.” A GPF can involve its pension management in different group systems where participants share the risk. For example, in terms of incapacity to work or death. But there is no solidarity between the different systems. Pension funds are separate from each other and are used exclusively for pension benefits for plan members.
You pay AOW dues for your employee at the Dutch tax and customs administration. You keep part of your employee`s salary or payment contribution. In some sectors, a pension fund (Bedrijfstakpensioenfonds, Bpf) is mandatory. Has your employee reached the age of AOW? You will be able to terminate the employment contract. Your employee may also continue to work, but this has an impact on the payment of contributions and taxes. The national pension or AOW is provided by the Verzekeringsbank Corporation (SVB), which manages and implements the Dutch national insurance system. The Dutch pension system has a solid base, consisting of three pillars, each with its own characteristics.