Operation of a Dutch pension scheme by a pension institution from another Member State: Budapest Protocol

Overview of Dutch social and labour law and rules on information provision When the pension scheme of a Dutch employer is operated by a pension institution from another Member State, Dutch social and labour law and Dutch rules on information provision continue to apply under European Directive (EU) 2016/2341. This document contains an overview of Dutch social and labour law and Dutch rules on information provision. The operating pension institution must comply with the provisions below and such compliance is supervised by the competent Dutch supervisory authorities, De Nederlandsche Bank N.V. and the Dutch Authority for the Financial Markets (AFM). This overview is not limitative, but provides an overview of provisions that are aimed at pension providers. When operating the pension scheme of a Dutch employer, a pension institution from another Member State must also take into account other provisions of Dutch social and labour law (not aimed at pension providers), such as the Settlement of pension rights in case of divorce Act (Wet verevening pensioenrechten bij scheiding) and the Equal treatment based on age in employment Act (Wet gelijke behandeling op grond van leeftijd bij de arbeid). Datum: January 17th, 2019 No rights may be derived from the overview below. Pensions Act (Pensioenwet)
Chapter 1. Definitions and scope
Section 1. Definitions used
Section 2. Additional provisions regarding definitions
Section 4. Partial applicability in the case of pension equalisation
Chapter 2. Pension agreement
Section 7. Information to be provided for the employee and offer of pension agreement
Section 8. Protection of part-time employees and young employees
Section 9. Pension agreements in transfers of companies
Section 10. Character of a pension agreement
Section 10a. Benefits in the case of capital sum agreements and defined contribution schemes
Section 11. Benefits, capital or contribution
Section 12. Payment reservation
Section 13. Indexation
Section 14. Restriction of age discrimination in acquisition and offer
Section 15. Additional requirements regarding old-age pensions
Section 16. Additional requirements regarding partner pensions
Section 17. Proportional acquisition of pension rights
Section 17a. Proportional recharging of costs
Section 18. Vested rights on reduction of pensionable salary
Section 19. Amendments to a pension agreement
Section 20. Consequences of amendments to a pension agreement
Section 21. Information on the pension scheme and notification of amendments
Section 22. Mandatory hearing of pensioner association in case of operation by insurer

Chapter 3. Administration agreement
Section 23. Employer’s outsourcing obligation
Section 24. Contributions to be paid to pension provider by employer
Section 25. Requirements regarding content of administration agreement
Section 26. Requirements regarding payment of contributions
Section 27. Payment of contributions on termination of scheme membership
Section 28. Notification by pension fund of contribution arrears and failure to meet minimum equity
requirement
Section 29. Notification by insurer in the event of contribution arrears and their consequences
(in the case of operation by an institution for occupational retirement provision (IORP), this
section must be applied as appropriate)
Section 30. Applicable law
Section 31. Prohibition of pledge and other acts
Chapter 4. General provisions regarding the pension provider
Section 35. Drafting and content of pension regulations
Section 36. Recording of years of scheme membership
Section 37. Notification of occupational disability
Section 38. Annual provision of information for scheme members
Section 39. Provision of information for scheme members on termination of membership
Section 40. Regular provision of information for former scheme members
Section 41. Provision of information for former partner on divorce
Section 42. Regular provision of information for former partner
Section 43. Provision of information before or at start of pension payment
Section 44. Annual provision of information for pensioners
Section 44a. Provision of information on variable benefits
Section 45. Provision of information for scheme members regarding voluntary pension scheme
Section 45a. Information on operating costs
Section 46. Information on request
Section 46a. Available information
Section 47. Provision of information on departure to another Member State
Section 48. Requirements regarding information provision
Section 49. Electronic or written information
Section 50. Provision of information by pension provider
Section 51. Pension database
Section 52. Pension provider’s duty of care in defined contribution schemes with investment freedom
Section 52a. Duty of care in defined contribution schemes without investment freedom and variable
benefits
Section 53. Provision of benefits (in other Member States)

Section 55. Vesting of pension rights on termination of scheme membership
Section 56. Vesting of rights to partner pension in case of leave
Section 57. Vesting of rights in case of divorce
Section 58. Equal treatment regarding indexation
Section 59. Prohibition of limitation in favour of the pension provider
Section 60. Option of higher or earlier old-age pension
Section 61. Option to exchange old-age pension for partner pension
Section 62. Other exchange options
Section 63. Variation of amount of pension benefits
Section 63a. Variable benefits
Section 63b. Variable or fixed benefit option
Section 63c. Administration of variable benefits
Section 64. Prohibition of alienation and possibility of proxy
Section 65. Redemption
Section 66. Redemption of small old-age pension
Section 67. Redemption of small partner pension or orphan pension at inception
Section 68. Redemption of small special partner pension on divorce
Section 69. Redemption of pension in excess of tax limit
Section 70. Concept and scope of value transfer
Section 70a. Right to transfer value of small old-age pension
Section 71. Obligation to transfer value at request of former scheme member on change of employer or
entry into occupational pension scheme
Section 71a. Exception to value transfer obligation in connection with redemption
Section 72. Exception to value transfer obligation in connection with financial position of pension
provider or employer
Section 72a Exception to value transfer obligation in connection with additional payment
Section 73. Exception to value transfer obligation in connection with date
Section 74. Revival of value transfer obligation on change of employer or entry into occupational
pension scheme
Section 75. Authority to transfer value at request of former scheme member on change of employer or
entry into occupational pension scheme
Section 76. Obligation to transfer value at request of scheme member in case of other pension
agreement with same employer
Section 77. Revival of obligation to transfer value in case of other pension agreement with same
employer
Section 78. Authority to transfer value at request of scheme member in case of other pension
agreement with same employer
Section 78a. Authority to transfer value at request of former scheme member in case of other pension
scheme with former employer
Section 79. Obligation to use value in case of option or right to choose
Section 80. Value transfer by pension funds on reaching retirement date based on pension agreement

Section 81a. Obligation to transfer value for premium pension institutions on date of conversion into
pension benefits or reaching retirement date
Section 81b. Authority to transfer value for interim conversion into pension benefits
Section 82. Transfer of pension capital on retirement date
Section 83. Authority to effect group value transfer at request of employer
Section 84. Obligation to effect group value transfer on liquidation of pension provider
Section 85. Obligation to transfer value to a pension institution from another Member State or an
insurer having its registered office outside the Netherlands at request of former scheme member
Section 86. Obligation to transfer value to one of the European Communities or a designated institution
Section 87. Authority to transfer value to another institution
Section 88. Authority to transfer value to a pension institution from another Member State or an
insurer having its registered office outside the Netherlands at the request of former scheme member on change of employer or entry into an occupational pension scheme
Section 89. Authority to transfer value to a pension institution from another Member State or an
insurer having its registered office outside the Netherlands on reaching retirement date based on pension agreement
Section 90. Group value transfer to pension institution from another Member State or an insurer having
its registered office outside the Netherlands
Section 90a. Group value transfer from a pension fund or premium pension institution to a pension
institution from another Member State
Section 91. Obligation to cooperate with value contribution
Section 92. Authority to cooperate with value contribution
Section 93. Information from the Key Register of Persons
Section 94. Citizen Service Number
Section 95. Conditional indexation
Section 97. Scheme membership during secondment
Section 98. Death due to excluded cause
Chapter 7. Supervision, enforcement and other duties of supervisory authority
Section 199. Conditions for operation of Dutch pension scheme
Section 199a. Applicable social and labour legislation
Chapter 8. Legal proceedings
Section 216. Civil disputes in general
Section 220b. Transitional law for the Small Pensions (Value Transfers) Act (Wet waardeoverdracht klein
pensioen)
Section 220c. Transitional law for implementation of Directive (EU) 2016/2341

Decree Implementing the Pensions Act and the Mandatory Occupational Pension Scheme Act (Besluit uitvoering Pensioenwet en Wet verplichte beroepspensioenregeling)
Chapter 1. General provisions
Section 1. Definitions used
Section 1a. Additional rules on occupational disability pensions
Chapter 2. Information
Section 2. Information on the pension scheme
Section 3. Possibility for supervisory authority to set additional rules regarding information provision
in defined contribution schemes with freedom of investment
Section 4. Information on indexation
Section 5. Information on reduction of pension rights and pension entitlements
Section 5a. Information on pension rights attainable under regulations
Section 5b. Information on contributions
Section 6. Provision of information for scheme members on termination of membership
Section 7. Provision of information for former partner on divorce
Section 7a. Provision of information before or at start of pension payment
Section 7b. Annual provision of information for pensioners
Section 7c. Provision of information on benefits
Section 7d. Standard models
Section 7e. Calculation rules
Section 8. Provision of information for members of voluntary pension scheme
Section 9. Information on request
Section 9a. General requirements for Uniform Pension Statement
Section 9b. Available information
Section 9c. The Uniform Pension Statement
Section 9d. Electronic information provision
Section 9e. Pension database
Section 10. Costs of information provision
Section 10.0a. Language of information
Section 10a. Information on operating costs in management report
Section 10b. Presentation of operating costs in management report
Chapter 4a. Investments and duty of care
Section 14a. Compliance with regard to investments
Section 14b. Investment policy
Section 14.0c. Option to take over responsibility for scheme member’s investments
Section 14c. Where scheme member has responsibility for investments
Section 14d. Where pension provider has responsibility for investments
Section 14e. Obtaining of information by the pension provider

Chapter 5. Exchange, redemption and equal treatment
Section 15. Terms of exchange and optional accrual rate
Section 16. Redemption of small pensions and redemption of excess pension
Section 17. Equal treatment in case of pension agreements with unspecified ratio between pension
types
Chapter 5a. Variable benefits
Section 17a. Fixed decrease
Section 17b. Risk-free interest rate with projected interest and fixed decrease
Section 17c. Group allocation key
Section 17d. Share return parameter
Chapter 6. Value transfer
Section 17e. Value transfer for new small pension
Section 17f. Value transfer for existing small pension
Section 17g. Transitional law regarding request deadline for statement of pension rights
Section 18. Request for return of information to transferring provider
Section 19. Return of information to the provider
Section 19a. Temporary arrangement for additional contributions where acquisition started before 2015
Section 19b. Temporary arrangement for additional contributions where acquisition started in or after
Section 20. Return of information to the beneficiary
Section 21. Request for value transfer
Section 22. Request for return of information to the receiving provider
Section 23. Handling of value transfer
Section 23a. Suspension of value transfer obligation
Section 24. Exceeding deadlines
Section 25. Calculation of transfer value
Section 26. Transfer value not equal to value of financed part of pension rights
Section 27. Use of transfer value
Section 28. Treatment of pension rights after value transfer

Pensions Act and Mandatory Occupational Pension Scheme Act Supervisory Regulation (Regeling Pensioenwet en Wet verplichte beroepspensioenregeling)
Chapter 1. Rules pursuant to the Pensions Act and the Mandatory Occupational Pension Scheme Act
Section 1. Designated employees
Section 1a. Pension Register Foundation (Stichting Pensioenregister)
Section 2. Designated institutions
Section 3a. Pension equivalence
Section 3b. Temporary benefits
Section 3c. Lifelong benefits
Section 3d. Residual capital
Section 3e. Obligation of pension provider
Section 6. Conditionality declaration
Chapter 2. Rules pursuant to the Decree Implementing the Pensions Act and the Mandatory Occupational
Pension Scheme Act
Section 14. Information on the pension scheme
Section 15. Price inflation
Section 16. Determination of interest rate
Section 17. Interest payable
Section 18. The standard rate
Section 19. Calculation of pension rights
Section 20. Deviation from standard rate
Medical Examinations Act (Wet op de medische keuringen)
Section 4.