• Service: Tax, Global Mobility Services
  • Type: Regulatory update
  • Date: 4/2/2014

Netherlands - Voluntary savings (retirement) plan 

April 2:  A new voluntary savings plan, introduced for the portion of an individual’s income exceeding a cap of €100,000, has been approved by the lower house.


Under Dutch law—the Reduction of Maximum Pension Accrual and Premium Rates and Maximum Pensionable Income Act (Wet verlaging maximumopbouw- en premiepercentages pensioen en maximering pensioengevend inkomen, referred to as the “WMO Act” or as Witteveen 2015):

  • The pensionable salary will be capped at €100,000 as of 1 January 2015.
  • The state pension offset then must be deducted from this amount.

This part of the government’s plans has remained intact. The cap will be indexed annually at the beginning of the calendar year and will be linked to the indexation of the minimum wage. The indexation will eventually be included in a ministerial decree.


On 20 January 2014, the government presented a proposal to amend the WMO Act to the lower house, which approved it on 6 March 2014.

A new voluntary savings plan has been introduced for the part of the income exceeding the cap—i.e., the net annuity.

Therefore, it is possible to accrue a retirement provision that is almost equal to the annual gross pension accrual of 1.875% under an average pay plan.

  • The premium or contribution is non-deductible, but must be paid from the net income.
  • The benefits will not be taxed in box 1.
  • The value of the entitlement will be exempt from the tax on deemed investment income in box 3.
  • The net annuity—leaving aside the net premium—must comply with current annuity legislation. It must therefore provide for a retirement income.

The net annuity replaces the bill for the implementation of the pension and annuity top-up rules (Wet pensioenaanvullingsregelingen) which has been withdrawn.

Read an April 2014 report prepared by the KPMG member firm in the Netherlands: Net annuity for taxpayers whose pensionable income exceeds EUR 100,000

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