Workers in the Netherlands who change jobs this year risk losing pension transition compensation that can amount to thousands or even tens of thousands of euros, as the country’s pension system is mid-reform and not all funds have switched to the new system at the same time, NOS reports.

The warning has been issued by pension experts, pension funds, and the Dutch Authority for the Financial Markets (AFM) and is now under review by the Second Chamber, which has asked the Ministry of Social Affairs for clarification.

The core issue is timing: compensation for the pension overhaul is only granted if a worker is actively building a pension in a fund at the moment that specific fund transitions to the new system. Workers who switch jobs and move funds during this staggered transition risk missing out on compensation in both their old and new schemes.

The AFM said, “Out-of-service due to a job switch can have major effects. We call on the entire pension sector to inform participants in a timely and clear manner about this.”

About 30 pension funds, covering more than half of working and retired participants, have already moved to the new pension system. Under the reform, pension participants can see their individual pension pot and projected retirement income more clearly.

However, just under half of the participants have not yet transitioned. Their funds will switch later this year, next year, or by Jan. 1, 2028. That staggered rollout creates the risk that workers who change jobs in 2026 fall between systems and lose eligibility for compensation.

The compensation is intended to offset a structural change in the pension system. Under the old system, younger workers effectively contributed more to support stable pensions for older generations, with the expectation that future generations would later support them in return. As that mechanism is removed, mid-career workers lose expected future contributions and are entitled to compensation when their fund transitions. Compensation agreements are negotiated per pension fund between employers and employee representatives.

According to calculations by pension adviser Aon, based on average arrangements across multiple funds, compensation varies widely by age and income.

A 40-year-old earning 48,000 euros could receive roughly 7,000 to 11,000 euros. A 50-year-old earning 72,000 euros could receive between 22,000 euros and 41,000 euros. Lower incomes and older age groups also receive compensation, with amounts typically ranging from a few thousand euros to more than 30,000 euros, depending on the fund and personal situation.

The figures are indicative and differ per pension fund, including which age groups qualify and the compensation percentage.

Only employees who are actively participating in a pension fund at the time of its transition receive compensation. Workers who are no longer contributing to a fund—so-called “sleepers”—are ineligible. Workers who move to a fund that has already completed the transition also miss out entirely.

An example illustrates the risk: a civil servant building a pension with ABP, which is expected to transition in 2027, changes jobs this year and moves into healthcare under PFZW, which has already switched systems. That worker would miss compensation in both funds. ABP alone has more than 3 million participants, including about 1.3 million active contributors.

The Netherlands has about 8.5 million “sleepers,” people who still have pension assets but no longer contribute. Many have pension rights spread across multiple funds due to career changes.

These individuals generally do not receive transition compensation unless they are actively contributing at the moment their fund switches. In most cases, they continue building a pension elsewhere and may receive compensation there instead.

Pension funds say they are informing participants through newsletters, example calculations, and information sessions across the country. ABP said, “We actively communicate to participants about compensation in specific life events that may affect it, for example, when a participant changes jobs, resigns, or retires.”

Despite these efforts, regulators question whether workers understand the rules during job transitions. The AFM has raised concerns about whether participants know when they are considered inactive in a fund and therefore at risk of missing compensation.

The issue has also drawn political attention. The Second Chamber will soon discuss the matter with Social Affairs Minister Vijlbrief (D66). The ministry has urged pension funds and social partners to improve communication so workers are better informed during job changes in the transition period.