With effect from 1 July 2015, the raise in the State Pension age [AOW-leeftijd] will be accelerated, with the age to be raised to 66 years in 2018 and 67 years in 2021. After that, the State Pension age (‘AOW age’) will be linked to the increase in life expectancy. The acceleration will primarily affect employees born between 30 September 1950 and 1 January 1957. They will have to work a few months longer than is currently the case. This may mean an increase in the average age of your company’s employees.
This is consistent with the new law passed by the Dutch Senate on 2 June 2015. The law’s objective is to keep the Dutch State Pension system affordable. This law will implement the government agreement of the Rutte II Cabinet, which was published in 2012 and which announced the acceleration of the raise in AOW age. The law elaborates on the Raising of the State Pension Age and Standard Pension Retirement Age Act [Wet VAP] which entered into effect in 2013 and which enabled the initial raise in AOW age.
Under the new law, the AOW age will be raised as follows:
Click here to view table.
The applicable AOW age for each employee will depend on their date of birth and can be calculated using the calculation tool at http://www.rijksoverheid.nl/onderwerpen/algemene-ouderdomswet-aow.
The new AOW age means that employment contracts will end by operation of law at a later date if they contain pension-related termination clauses that refer to the age at which the employee becomes eligible to receive a State Pension. We advise you to reconsider such clauses in light of the new dismissal law that will enter into effect on 1 July 2015 (Work and Security Act [Wet werk en zekerheid]) and the new termination options for older employees in particular.