Laid off ING workers will miss out on tens of thousands of euros in pension compensation
ING is cutting 950 jobs in the Netherlands this year. The laid-off employees will miss out on money for their pension pots, amounting to thousands or even tens of thousands of euros. A spokesperson for the bank confirmed to NOS that laid-off employees are not entitled to compensation for the transition to the new pension system.
Over half of pension funds in the Netherlands have already switched to the new pension system. All funds must be on the new system by January 2028. Compensation for certain age categories is part of the transition.
In the old system, young employees contributed more to the pension fund to provide for the older generation. As those younger employees get older themselves, the generations below them take care of their pensions by contributing more.
That does not happen in the new system, which disadvantages workers in their forties and fifties. They contributed extra money for years for the generation above them, but can no longer count on higher contributions from the generations below them. They must be compensated for this when transitioning to the new system. Employers and employees agree on the amount, and it can range from thousands to tens of thousands of euros.
Anyone resigning or being laid off this year may miss out on compensation. This is because the compensation only applies to active participants in the fund at the time of transfer. Those who are laid off will still have pension money in the pension fund, but will no longer accrue. These dormant members are not eligible for compensation.
And that also applies to the ING employees facing layoffs this year, a spokesperson for the bank confirmed. The spokesperson pointed to the social plan agreed upon with the trade unions, which does not include the right to compensation. However, the bank said it would investigate whether compensation might still be possible. Whether an arrangement will apply to people who have already been laid off is unclear.
NOS spoke to an ING employee in her mid-forties who will lose her job on July 1, 2027. She has been working at ING for over 10 years and has a substantial salary. She will likely miss out on around €27,000 in her pension pot. Lower-ranked employees are entitled to around €16,000 in compensation. Once reitried, this could amount to a difference of €70 to €200 in pension payout per month, according to the broadcaster.
De Unie is receiving many questions about this from concerned ING employees, the trade union told NOS. “These employees are already in a stressful situation because they are at risk of losing their jobs,” negotiator Inge de Vries said. “On top of that, as an insult, they are hearing that they may be dismissed before the fund’s transition date, causing them to miss out on the compensation.”
In recent months, ASML, ABN Amro, Tata Steel, Achmea, Philips, and Signify, among others, have also announced layoffs. Many of them have made arrangements for the pension compensation, NOS found.
At ABN Amro, which is cutting 5,200 jobs, laid-off employees can choose to continue contributing pension premiums themselves until the fund switches to the new system. That way, they remain active and, therefore, retain their entitlement to compensation. Tata Steel, Philips, and Signify made similar agreements.
At ASML, the agreement will likely be that the first layoffs will only occur after the pension fund has switched to the new system, according to NOS.
