Lockton Global
Compliance News

Month: January 2023

Netherlands

The Netherlands to reform its pension system

On 22 December 2022, the Dutch House of Representatives approved the draft bill of the Future of Pensions Act (in Dutch: Wet toekomst pensioenen – WTP). The legislation, which goes before the Senate in January 2023, aims to implement reforms of the Dutch supplementary pension system that were agreed upon between employers, employees, and the government in 2019. The WTP introduces several important changes, notably the obligation to provide occupational pension schemes on a defined contribution (DC) basis only instead of a defined benefit (DB) provision accrual.
If the Senate approves, the WTP will come into effect on 1 July 2023. A transition period until 1 January 2027 applies for employers and pension providers to implement the changes in consultation with the employees and/or their representatives.

China

China launches a new voluntary private pension scheme

On 25 November 2022, the Chinese government launched the pilot phase of a voluntary tax-favored private pension scheme under the third pillar of the country’s pension system. This new scheme aims to assist China in overcoming gaps in its current pension system as the country struggles with one of the most rapidly aging populations in the world, according to the World Health Organization.

Malaysia

Malaysia to expand family leave entitlements [Updated]

On 30 March 2022, the Malaysian Parliament passed the Employment Bill 2021 introducing several amendments to the Employment Act of 1955, including the extension of the maternity leave from 60 days to 98 days and the introduction of a seven-day employer-paid paternity leave. The new Bill entered into effect on 1 January 2023.