Dutch or expat plan

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:

Claims Issues

  • Do both plans provide the same kind/amount/choices of coverages?

Finance/Costs Issues

  • 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.

Tax Issues

  • Both plans have the Reversal Rule?
  • Both plans have equal tax exemptions?
  • Both plans have similar tax rates and net tax impact?

True Story

  • 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.