EU court condemns the Netherlands for keeping pension nationally

The Netherlands will have to amend its pension law after the highest court in the European Union condemned the Dutch government for holding on to the pensions of people who move to another EU Member State. The ruling was published on Thursday by the Sixth Chamber of the European Court of Justice in Luxembourg.

The court ruled that the Dutch pension law does not comply with European Union agreements regarding the free movement of employees and capital. It also does not comply with prior agreements about people who want to take their pensions to another country in Europe.

Currently, the Netherlands only allows accrued pension money to be transferred to a foreign pension provider under strict conditions. In practice, these conditions make it virtually impossible for citizens to take their pensions with them after a move elsewhere in the E.U.

The lawsuit was filed by the European Commission over the issue, which has been ongoing for years. The executive branch of the European Union also monitors compliance with European agreements.

In 2012, the European Commission informed the Netherlands that it believes the Dutch government is not respecting the European rules for the free movement of people and capital. This was followed by an exchange of letters in which the Dutch position stated that the Commission’s reasoning was in error.

The European Commission then submitted the issue to the European Court of Justice in 2022, which ruled against the Netherlands on Wednesday.