Dutch or Expat Plan
Companies often try to provide expats the best service by offering two options:
- Participate in the regular local (Dutch) collective pension plan
- Participate in the only for expats available international plan
Please obtain advice as the differences can be diverse and their impact enormous:
- Do both plans provide the same kind/amount/choices of coverages?
- Both plans have an equal Capital/Risk based nature?
- Both plans have an equal own contribution?
- It is advisable to be highly critical about cost levels as their compounded impact is huge.
- Are all costs exactly specified?
- Regular collective pension plans can have low cost rates. Please check.
- Expat pension plans too often have (partially) very high cost levels. Please check.
- Both plans have the Reversal Rule?
- Both plans have equal tax exemptions?
- Both plans have similar tax rates and net tax impact?
- A company offered two options of which only one had the tax Reversal Rule. Thus the other option was no option: Due to the tax disadvantage an enormous amount of future pension capital would evaporated annually. Which we prevented from happening.