One-time payment postponed again
The introduction of the one-time payment has been postponed again. The option still has to be approved by the House of Representatives and the Senate. This is no longer feasible before 1 July 2024. The new pension choice will therefore take effect no earlier than 1 January 2025.
What is one-time payment?
If you opt for a one-time payment, you can receive part of your accrued pension as a lump sum when you retire. This is a maximum of 10% of the value of your accrued retirement pension.
However, by withdrawing a lump sum on your retirement date, your monthly pension benefit will be lower afterwards. Also, there are conditions associated with this option. And a one-time payment can affect your taxes and benefits.
Why is there another postponement?
The House of Representatives will not discuss this option until early next year. After that, the proposal still has to go through the Senate. After approval, pension funds still need enough time to inform participants. As a result, 1 July 2024 is no longer feasible.
The government indicates that 1 January 2025 is feasible, but that more postponement is also possible. It is also not yet certain whether the bill will be approved.