On May 6, NLD RJ proposed changes to employee benefit guidelines.
NLD RJ issued proposed guideline changes relevant to legal entities that have a vitality scheme for employees, and for legal entities that have an early retirement scheme.
Proposed Changes
NLD RJ proposed to further elaborate guideline on the assessment of whether a right to paid absence for part of the working time (such as vitality schemes) concerns a remuneration with accrual of rights, or a remuneration without accrual of rights;
Changes also proposed to the method of processing early retirement schemes.
Proposed changes relate to Ch 271 Employee benefits, NLD RJ proposed further elaboration in section 2 Rewards during employment for schemes that give the right to paid absence for part of the working time and how this is assessed.
I.e. is a reward with accrual of rights or a reward without accrual of rights.
In addition, paragraph 5 Early retirement and other non-activity schemes is no longer up to date, as NLD RJ has developed new guidelines for early retirement schemes.
Early retirement schemes characterized by the fact that work no longer needs to be performed, even if a (formal) employment contract still exists.
NLD RJ proposes that changes take effect for reporting years starting on or after Jan. 1, 2025; earlier application is recommended.
Effectiveness
Comment period ends Jun. 5, 2024; proposed effective date is Jan. 1, 2025.
Aug. 2024 Final Amended Paragraphs
On Aug. 29, 2024, NLD RJ published RJ Statement 2024-17: Final amended paragraph regarding vitality schemes and early retirement schemes, confirming various changes.
NLD RJ finalized proposed amendments in RJ-Uiting 2024-5, and amended paragraphs for medium-sized and large legal entities for the vitality schemes (para. 2 of Chapter 271) and early retirement schemes (para. 4 of Chapter 271), on a number of points.
RJ-Uiting 2024-5 proposals for micro and small entities became final without change.
The changes are all set out within the text as a track changes version of the final text.
The changes are all effective for reporting years beginning on or after Jan. 1, 2025.
