On June 2, 2023, the new pension law passed, which means that employers, employees, and self-employed entrepreneurs will need to make new agreements regarding their pension plans. In this article, AXP Advisors provides an overview of what the new pension law means for you as an entrepreneur.
The New Law: Future Pension Law (WTP)
The new law, known as the Future Pension Law (WTP), will come into effect on July 1, 2023. The goal is for pension funds to transition to the new rules by early 2028. The law has been revised to better align with the current labor market, where employees often change employers. Here are three key implications of the WTP:
- Pension benefits will increase during times of economic prosperity, but there may also be reductions during economic downturns.
- Currently, there is a collective pension fund, but it will change to individual accounts. This will provide more transparency regarding an individual’s accumulated pension savings.
- Self-employed entrepreneurs (ZZP’ers) will be able to save more for their pensions with tax advantages.
What remains unchanged in the new system are:
- Both employers and employees will contribute towards building their pensions.
- Ensuring a sustainable pension level is important.
If your company is part of a collective labor agreement (CAO), the unions and employer organizations will make new pension arrangements. It will become clear what this means for you. If this is not the case, new agreements will need to be made with your pension provider.
Do you have any questions about how the new law will affect you as an employer or self-employed entrepreneur? Or do you need guidance on how to best build your pension within your business? The experts at AXP Advisors are ready to answer your questions. Please contact us of you need our help.