In the Netherlands, certain industries are required by law to participate in sector-specific pension funds, known as sectoral pension funds (Bedrijfstakpensioenfonds in Dutch, often abbreviated as BPF). This obligation depends on the nature of a company’s activities and ensures that employees receive adequate pension coverage.
Mandatory pension funds in the Netherlands
Does mandatory participation in pension funds in the Netherlands apply to your company?
Does mandatory participation in pension funds in the Netherlands apply to your company?
When is participation in a pension fund mandatory?
A company may be legally required to join a sectoral pension fund based on its core activities. If your business operations fall within the scope defined by a sectoral pension fund’s decree, you are legally obligated to register with that pension fund. Having an alternative pension scheme does not exempt you from this legal obligation. Therefore, our advice is to thoroughly investigate whether your company is indeed subject to mandatory participation. We can assist you with this investigation
The risks of non-compliance with a mandatory pension fund
Failing to register with the appropriate sectoral pension fund can result in retroactive claims for unpaid premiums. These can be significant amounts. Sectoral pension funds actively investigate to identify companies that fall under mandatory participation. This is because employees can make pension claims against the fund. Therefore, it is crucial for companies and entrepreneurs to verify properly whether participation in a sectoral pension fund is mandatory.
How to determine your obligations for sectoral pension funds
Establishing whether your business falls under a mandatory sectoral pension fund can be challenging, especially for organizations operating across multiple sectors. Additionally, business activities and the rules for mandatory pension fund affiliation may change over time. This is why this type of research is usually outsourced, allowing you to have a well-substantiated conclusion about your obligations.
Which sectors have mandatory participation in a pension fund?
Mandatory participation in sectoral pension funds applies to various industries, including but not limited to construction, healthcare, retail trade, engineering and logistics. However, there are many other sectors that also have a mandatory participation. Therefore, conducting a detailed assessment, often referred to as scope investigation or scope research, is the best way to confirm your legal obligations.
Professional advice for pension funds
If you’ve received a notice from a sectoral pension fund or are unsure of your status, seeking professional advice is highly recommended. Because navigating the complexities of sectoral pension fund requirements can be daunting. Consulting with pension experts or legal advisors can help ensure compliance and protect your business from potential risks.
Is an industry-wide pension fund mandatory for you? This is what we investigate for you, through a scope analysis. A well-conducted investigation into mandatory pension fund participation can prevent major financial or legal problems. Call 085 130 11 39 or fill in the contact form.