What will change in the pension scheme as of 1 January 2024? An overview of all the changes is given below.

The 2024 employment conditions are known, which means that the 2024 pension scheme is also known. After all, your pension is an employment condition. Since the end of the five-year contribution agreement in 2020, the TNO social partners (TNO Board and Works Council) started determining the contribution agreement annually. This means that the new agreement regarding the pension contribution combined with pension accrual is now known. The other pension scheme changes are a logical continuation of agreements such as those laid down by law, including the maximum pension accrual. This news item outlines the changes for 2024 and what these changes mean for your pension. Of course, all changes will also be incorporated in the 2024 pension regulations.

Pension accrual and pension contributions in 2024
In the negotiations on the 2023 employment conditions, the social partners agreed to retain contributions in the coming years at 20.34% and retain pension accrual at least at 1.50%. In 2023 the minister introduced a measure that gave funds the option to adjust the yield curve once for a new five-year period. This will enable pension accrual to return to the target level in 2024 and means that pension accrual will increase from 1.50% to 1.75%. We can do this based on the same pension contributions as in 2023: 20.34%. You do not pay this contribution entirely yourself, as part of it is paid by the employer. The employer settles the other part of this pension contribution with you via your salary. The employer takes the non-contributory base into account when calculating your employee contribution. You can see how much this is on your January payslip.

Pension accrual again at 1.75%
The pension accrual was 1.50% in 2022 and 2023 and was 1.46% in 2021, but TNO Pension Fund’s target is a pension accrual of 1.75%, as it was for the 2021 pension schemes. The Board has determined that the 2024 pension accrual can be increased again to 1.75%. This is possible because, in 2023, the current contribution period from 2021 to 2025 was replaced by a new contribution period for the 2024 to 2028 period. The trigger for this was the entry into force of the Parameters Committee parameters in December 2022. The Minister of Social Affairs and Employment has allowed pension funds to adopt a new five-year period in which, in addition to the new parameters, a more recent interest rate term structure is used. A condition is that the contributions in the new period cannot be lower than the 2023 contributions. At TNO Pension Fund the 2023 contribution was 20.34% of the wage bill.

We can inform you that, from 1 January 2024, indexation is 0% for those accruing pensions as well as for pension beneficiaries. For more information, see our news item about indexation.

Other changes
As well as the pension contribution with associated accrual, there are several pension scheme changes, including the ‘threshold amount’ and the maximum amount for pension accrual in 2024. Another change is that you can only supplement your pension in the Extra or Net Pension Scheme if you were already a member of that scheme. For new members, this is unfortunately no longer possible, as you were able to read in a previous item.

Taking all these points into account when calculating your pension accrual will enable you to see what the 2024 changes mean for your final pension accrual.

‘Threshold amount’
First of all, the ‘threshold amount’, also known as franchise, is the amount over which you do not accrue a pension. It’s roughly equal to the state pension you will receive from the government when you reach state retirement age. From 1 January 2024, the level of the franchise is €17,427 (this was €16,878 in 2023).

Maximum amount
The statutory maximum amount over which you can accrue a retirement and a partner’s pension also applies. This amount is indexed annually. In 2024, this is €137,800.

What do these changes mean for your pension accrual?
The retirement pension you receive is a total of what you have accrued each year plus any indexation and, in principle, this is paid out for life. For many years, the accrual percentage was 1.75%, but it was 1.46% and 1.50% between 2021 and 2023, before returning to 1.75% in 2024. This means that, in 2024, you will accrue retirement pension based on a maximum of €137,800 – €17,427 = €120,373 * 1.75%, and 70% partner’s pension. In the event of death during employment, 70% of 1.75% pension accrual is also assumed for the remaining duration until the deceased’s state retirement age date.

See what’s changing
You can see the 2024 changes in the TNO Pension Fund portal from the first weeks of 2024. You can see the changed amounts by visiting ‘My Pension’ and logging in with your DigiD. You can then use the data to determine for yourself whether you are accruing enough pension.

The changes are also shown on your annual pension statement. You will receive the pension statement regarding the status on 1 January during the course of this year. If you have problems logging in or have questions about the pension statement content, please contact the AZL pension administrator.

Contact
If you have any questions about your pension as a result of this information, please contact our pension administrator, AZL. They are available during office hours on +31 (0)88 116 2401 or by email at pf-tno@azl.eu.