On Dec. 16, NLD BZK issued circular on adjustments to Appa pension.
Ministry of the Interior and Kingdom Relations issued Circular on adjustments to Appa pensions, relating to pensions of political office holders that are based on the General Pension and Benefits Act for Political Office Holders and deductions (Appa) legislation.
Legislation Overview
The Decree on the Pensions of Political Office Holders (the Decree) now regulates the adjustment of pensions (indexation) and level for pension, deduction and the accrual.
Para 2 provides annual advice on how government can calculate the size of required provision for Appa pensions and value transfer, while Para 3 explains the importance of an adequate provision in connection with transition of Appa pensions to a new pension.
In addition, Para 4 announces a study into the transfer value per province, including the Municipalities and Water Boards for this intended upcoming transition to the ABP.
The interest rate for revaluations has been set at 2.325% for 2025, with the relevant percentage to be found on NLD DNB website, and fixed rate applies to the period from Jan. 1 to Dec. 31 of any year, in accordance with the rules as are set out and defined.
During debate on Future Pensions Act (Wtp), Senate requested NLD GVT to regulate pensions of political office holders, in the same way as for the rest of the Netherlands.
In response to motion, the Cabinet proposed in letter to NLD PRL to transfer pensions of political office holders to General Civil Service Pension Fund (ABP) on Jan. 1, 2028.
The Wtp makes fund financing mandatory, so to enable transition to fund financing for the Appa pensions, it is necessary make a one-off capital contribution to ABP, in 2027.
These matters are covered in the Circular with further detail to follow in due course.
Effectiveness
The terms of the Circular will now apply from Jan. 1, 2025, and expire Jan. 1, 2026.
