Start the Pension Transition in a Timely Manner
The pension transition—resulting from the new pension legislation effective as of July 1, 2023—has major implications for the pension agreements with employees. This requires significant adjustments.
These adjustments may have considerable financial consequences for both employers and employees. That’s why mapping out the available options and calculating the impact is essential.
BexerHamstra has the expertise to guide you through this transition. We’ve already gained extensive experience in this area. Our background in advising on total compensation packages enables us to consider your entire employment benefits framework during the pension transition. A benchmark comparison with peers in your industry or the broader labor market can be a key part of our advice.
We are seeing a clear increase in the number of pension transition cases we’re handling. The transition must be completed within three years. Adopting a wait-and-see approach is not advisable. As an employer, you are required to prepare a transition plan that outlines the changes you will implement and how you will compensate employees for any potential disadvantages. This plan must be submitted to your pension provider no later than October 1, 2026. If you fail to do so, you will be bound by a default transition plan, which could have significant financial and legal consequences.
To help you gain insight into the necessary steps, we are happy to offer you a no-obligation team consultation with one of our advisors.
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