White Paper Obstruction Prohibition

In the Netherlands, there is no general obligation to provide a pension scheme. Nevertheless, a large number of employees participate in a pension scheme through a mandatory industry-wide pension fund. There are approximately 70 of these pension funds in the Netherlands. Many employers are unfamiliar with this. They mistakenly assume that no pension obligation exists or that their own pension arrangement is sufficient. The financial and tax consequences can be significant. A pension fund may enforce mandatory affiliation and collect contributions retroactively.