The Dutch pension system, often referred to as a three-pillar system, comprises mandatory state pensions, occupational pensions, and private pensions. Here's a breakdown of each pillar:

• State Pension (AOW): The first pillar consists of the state pension, known as the Algemene Ouderdomswet (AOW). This is a mandatory, flat-rate pension provided by the government to individuals who have reached the official retirement age. The AOW pension is intended to provide a basic level of income security for retirees and is funded through taxes on the working population. The current mandatory retirement age has gradually been increasing to 67 years and 3 months in 2024, in response to demographic shifts and increased life expectancy.
• Occupational Pensions (Second Pillar): The second pillar encompasses occupational pensions, which are provided by employers for their employees. These pensions are often part of collective labor agreements (CAOs) negotiated between employers and trade unions. The contributions to occupational pensions are typically made jointly by employers and employees and are managed by pension funds or insurance companies. The aim of occupational pensions is to provide additional retirement income on top of the state pension. Pension contributions start from the age of 18 and older. However, some employers, due to the size of the business and the lack of a collective labor agreement, may have the option to opt out of offering occupational pensions.
• Private Pensions (Third Pillar): The third pillar includes private pensions, which are voluntary savings and investment arrangements individuals can make to supplement their retirement income. Private pensions can take various forms, such as individual retirement accounts (IRAs), annuities, or other investment vehicles. Contributions to private pensions may be tax-deductible, and the accumulated funds are typically invested to generate returns over time.

Occupational Pension with ITSync

• Employee Pension Plan with StiPP: As an employee of ITSync Services, your pension arrangements depend on the phase of your contract and duration of employment.

1. Phase A Contracts (Weeks 1 to 52): Consultants under Phase A contracts receive the Basic Plan pension. This plan entails an 8% contribution from the employer towards the pension fund and it starts from the 1st day of the contract/employment.
2. Phase B Contracts (Week 53 to 3 Years of Employment): Consultants under Phase B contracts, which typically span from week 53 to three years of employment, receive the Pension Plus plan. Under this plan, the employer contributes 8% towards the pension fund, while the employee contributes 4% and it starts from the 1st day of the contract/employment.

• Pension Plan with Client Companies: If you are directly employed by one of ITSync Services' client companies, your pension arrangements will be outlined in the corresponding collective labor agreement (CAO) of that client. Each client company may have its own pension scheme negotiated through collective agreements with employee representatives. ITSync Services will provide you with information about your pension plan and contributions based on the CAO of the client you are assigned to.

You can always visit Mijnpensioenoverzicht.nl to track your pension contributions and forecast your future pension using your DigiD.