As of 1 July 2015, the Pension Communication Act came into force. This act ensures that pension providers and employers must provide more insight into what they are providing to the employee, former employee, former partner or pensioner.

Most employers assume that the pension providers ensures that the employer is fully compliant with all legislation. However, the pension providers can’t fully comply with this act because they are not actually in contact with the employees. They only process all information that they receive. Employers are much closer to their employees than pension providers. Employers have more insight and influence on this. Read below how this works out in practice:

Before hiring a new employee

Before a new employee is hired, it is important that he/she knows how the pension scheme works at the company. In addition, it must also state what the risks are and what the possible employee contribution is.

Important: All this must be done before the new employees signs his/her signature under the employment contract.

Is this already well arranged within your company, are you well aware of the pension scheme and is this explained in understandable language to the (potential) employee?

During employment

The law doesn’t only apply to new employees, but also to employees who are already employed. Are they also “pension conscious”? Do they know all the “in’s and out’s” of their company pension scheme? Inform an employee about what he knows about his pension to see if he has a good answer.

At “Life Events”

In addition to the pension scheme, employees must also be aware of the so called “Life Events”. This may have influence on their pension.

Think about:

• Value transfer of pension
• Work more/less or earn more/less
• Living together and/or getting married
• Divorce
• Disability
• Dismissal
• Death

Employees need to know this before these “Life Events” happens and what kind of influence this may have  on  their pension. Various jurisprudence and articles have shown that if an employee is not well informed about this, this can have major consequences for their pension. Pension 1-2-3 (is the information that a pension provider provides to employees) does not appear to be compliant. They receive it only after they are being hired. The policy is also not compliant because it is only adjusted after a mutation has taken place.

What do we offer for this? (short)

We offer an online pension information environment that is understandable for everyone. For example, as an employer, you can provide potential and existing employees with sufficient information about their pension scheme.

As an employer, it is therefore important to refer (potential) employees to the portal for more information about their pension and/or “Life Events”.