The employers Johnson & Johnson, the works councils and the J&J Pension Fund OFP are determining new pension arrangements under the new frameworks. For this purpose, an Employer+Employee (E+E) working group was set up in 2021. The first meeting was held in May the same year. To keep all stakeholders at J&J Pension Fund OFP informed, the working group has shared regular updates with you. Below you can read the key highlights from the working group's updates over the past few years. Prefer to read the full updates? See My Archive in My Pension.
2021
In 2021, the working group looked at flexible and solidarity premium schemes, based on the knowledge available at the time: what do the schemes entail, what choices can be made and what will they cost. Initial analyses and test calculations were made to see what the differences were between the current benefit agreement and the future premium scheme.
2022
In 2022, the costs were identified of converting the current pension scheme into the new pension scheme and the pros and cons of doing so or not. It was decided not to switch to a contributory agreement in the interim, as there appeared to be no clear benefit for stakeholders. Because of the many possibilities, the working group decided to exclude certain options so that the remaining ones could be thoroughly explored. It was clearly established that all target groups should be included and weighed in the choice. The solidarity and flexible contribution schemes were put side by side: the pros and cons, the risks of higher or lower pensions, but also how to build up reserves to reduce risks and what the costs involved would be. A 'balancing of interests' was carried out to see what the impact would be on all parties: pensioners, current employees and former employee participants. Based on the analyses, it was decided to use the flexible contribution scheme (FPR) as the starting point for the next steps. Further consideration was given to the draft based on the FPR and the options and choices within the FPR. The choices made for the draft were chosen so that the draft is as close as possible to the current pension scheme. Finally, the desired schedule for the transition to the new pension scheme was discussed, and it was determined that a Risk Preference Survey (RPO) would be commissioned by the pension fund in 2023 to obtain insight into the risk appetite among our participants.
2023
Research by the trendwatcher showed that we were at the same point in the process as other pension funds in 2023. A collective benefit was chosen for the calculations instead of individual benefits, and to calculate using average lifecycles. The question was (and still is) whether J&J Pension Fund OFP can implement the chosen flexible contribution scheme and options or whether this should be done by, for example, a Premium Pension Institution (PPI) or insurer. At this point, the focus was still on the analyses and calculations before this could be answered. The first version of the 'Balanced consideration of interests memo' was prepared which substantiated which choices were made, why, and which interests were weighed. Calculations of the preliminary choice of the draft new pension scheme were discussed. In doing so, the working group compared the new scheme with the current one. It was concluded that the new situation benefited young people and disadvantaged older people. The tipping point age for this is 45. Consideration was given to how the over-45s could be compensated for this. Finally, in 2023, the 3 options were discussed for the current accrued pensions and benefit phase: 1. Converting current pensions to the new pension scheme 2. Leaving as is. 3. Transferring to an insurer.
2024
Initial calculations were made on the basis of the basic assumptions. The negotiations will be based on the initial calculations. No pension administrator has been chosen yet either. The results of the RPO gave no reason to deviate from the earlier choices made by the working group. However, the results of the study will be used in the future design of the new pension scheme and will be taken into account by the (new) pension administrator. It was established that an agreement from the employers and COR is needed before the end of the year so that the final transition plan can be drawn up. Based on the consultant's input on the various options in terms of pension providers, it was decided to further explore the following options as pension providers: Premium Pension Institution (PPI), General Pension Fund (APF) and the current J&J Pension Fund OFP. It was determined what the analysis should look like that identifies the different options for pension providers. The formal requirements for the transition plan were also discussed this year. You can read all full (past and future) E+E updates at My Pension in My Archive. The next working group update is expected in September.
Register your private email address and stay informed
We will send you regular E+E updates from the working group by letter or through the portal. Register your private email address at My Pension and ensure that you keep up to date with the latest developments.
Also watch our webinar 'Your pension is changing'
During the webinar, we updated you on the new pension system and what it means for your income for later. You can watch the 'Your pension is changing' webinar on our website. You can also read the question and answer session here. |
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