General

Pensions in education

De AOb stands up for your interests now and in the future. For many people, a pension is still a long way off. But a pension is nothing more than deferred wages. You will probably have to survive for decades on the money that is now invested - on your behalf - by the ABP pension fund.

That is why the AOb on top of it. We negotiate with employers, the government and the pension fund about your future income. There has been since 2019 a pension deal about a new system. In May 2023 took the Senate this law to renew pensions definitively. It will take at least another five years before the changes are implemented for everyone.

In this file we will keep you informed of the latest status of the introduction of the new pension scheme at ABP and members can find interesting articles related to pensions. Curious what the AOb exactly does for the pensions? Then read this article.

We negotiate your pension on your behalf

De AOb is part of the FNV, and participates in all negotiations with the government, employers and pension administrators about the pensions of teaching staff. Will we agree at the negotiating table? Then the agreement goes to our members. Ways AObMembers reject the proposal, then we will renegotiate.

Why did the pension have to be overhauled?: The labor market has changed. Gone are the days when you work for life in one sector. People switch jobs or become self-employed for a while. In addition, we are getting older, which means that the pension is unaffordable. In June 2019, the unions, employers' organizations and then Minister Wouter Koolmees of Social Affairs came to a pension deal.
What are the biggest changes?: Pension funds no longer make firm promises. They no longer guarantee that you will receive 1000 euros per month when you retire. That will be a goal. You can see what the pension fund's assets are, what money has been reserved for you and the expected payment. The final amount of your pension will depend on income from investments. So you can see more directly whether things are going well or badly.
In addition, the 'average premium' will disappear. Now everyone within a sector pays the same premium and everyone accrues the same pension. In the new system, employees continue to pay the same contribution and the contribution money goes to the personal share in the pension assets. Young people's money can pay off for longer and is therefore expected to yield a higher pension.
Will the pension become more uncertain?: Even with the guarantees that pension funds still give, there is no real certainty in practice. Do you want a guaranteed low pension or a more uncertain high pension? In the new system there is a degree of certainty, because you can see what has been saved for you. That will not evaporate in one fell swoop, pension funds will continue to invest based on their obligations and their participant population.
What are the advantages and disadvantages of the new pension system?: The system was imprisoned by strict rules associated with firm pension promises. Because pension funds no longer provide guarantees, funding ratios – the money that pension funds now need to have in cash to pay pensions in the future – will emerge as the dominant factor. Just like strict rules about actuarial interest rates. Pension funds can therefore distribute money more easily and earlier if things are going well. But also shorten faster in bad times.
What does the AOb of it?: The FNV – where the AOb part of – sat at the table during the negotiations about the pension. In 2019, a majority of the AObmembers in a referendum generally approve the pension deal. The members' parliament of the FNV has also approved the elaboration. In this parliament, the AOb eight seats. Also the General Assembly of the AOb discussed the pension deal and agreed with its implementation.

Agreement on main points

There has been an agreement on the main points for a new pension scheme at the ABP pension fund. The agreement is necessary because of the new Pension Act. You can find all the details about the agreement in this news item.

Elaborated agreement

The parties hope to have a detailed version with an explanation of all agreements made by the end of February 2024. This is called a draft transition plan and is a mandatory part by law.

Submit to pensioners' associations

Associations of retirees and former participants are heard about the detailed version (the draft transition plan) of the new pension scheme at ABP. They are not directly involved in the consultation.

Information meetings for members

De AOb is holding meetings for members in five regions to discuss the new arrangement. There will also be a webinar on this topic.

Constituent consultation with employers and unions

AObmembers will receive an email with which they can cast their vote on the new pension scheme. AOb-pension advisor Roelf van der Ploeg: As soon as it is final, ABP can prepare for the introduction and the Dutch Bank has time to test whether the agreements meet all legal requirements.

Introduction of new pension scheme

The new pension scheme comes into effect on this date and has been fully adapted in accordance with the new Pension Act.

What will the new pension system look like?: The pension fund now has one large pot of pension assets that are invested in one way. In the new system, each participant gets his own pot. The advantage is that the investments are then tailored to age. This way, the money of young participants can be fully invested in riskier investments, such as shares and real estate. These usually provide higher returns and there is enough time to absorb interim stock market dips. From the age of 45, the risk is gradually reduced by adding bonds to the investment portfolio. As the time approaches when the investments must provide a pension, more certainty is needed.

AObpolicy officer Roelf van der Ploeg sees advantages. “At the moment, the investment policy does not fit the specific needs of the different groups. Young people give up part of their returns for older people, while older people give up part of their protection. So that will change.” Another advantage of the new approach: if you decide to start your own business after a number of years in education - which is currently very unfavorable in terms of pension accrual - you will already have a large part of your pension with the new scheme.
When will the new pension scheme come into effect at the ABP pension fund and what will I notice about it?: The new scheme will come into effect at the ABP pension fund from 1 January 2027. There is now an agreement on the main points about what the scheme should look like. The unions and employers are further developing this agreement so that it can be submitted in the summer of 2024. You won't notice much of it. All pensions will remain at least the same or will increase slightly. The ABP will keep all participants informed of the input.
Have I noticed anything yet about the new pension system?: Yes, the new pension system ensures that pensions move more with the economy. This allows pension funds to index more quickly. A renewal of the pension system was necessary due to the changing labor market where employees no longer always work for a boss. Life expectancy is also increasing, so an innovation was necessary to keep pensions affordable.
If I die, will my surviving relatives receive my personal pension pot?: No, they do not receive the pension pot. The ABP will pay them a survivor's pension. In the new scheme, the agreements surrounding this pension have been improved compared to the old system. Employees with the lowest incomes in particular benefit from this, but it is also a plus for middle incomes. Surviving relatives will receive 41 percent of the final salary paid into the account. Children who remain behind also receive 25 percent of their final salary until the age of 7.

At the moment (in the old pension system), surviving relatives receive a lot less, because the calculation is made on the basis of the pension to be achieved and not on the last salary. AOb-pension advisor Roelf van der Ploeg: "The pension amount - including AOW - is already about 70 percent of the salary. With an income of 35 thousand euros, this means that the survivor's pension is calculated over 20 thousand euros. The pension that can be achieved is then 14 thousand euros. The survivor's pension for state pension age is then just under 10 euros. In the new scheme, the survivor's pension will be 41 percent of 35 euros. Survivors will then receive 14.350 euros. A significant improvement compared to the current scheme." Also read this article with more information about the survivor's pension.