The Netherlands will have to amend its pension law after the EU’s highest court found the Dutch government guilty of retaining pensions for people who move to another EU member state. The Sixth Chamber of the European Court of Justice in Luxembourg published the ruling on Thursday.
The court ruled that the Dutch pension law was not compatible with EU agreements on the free movement of employees and capital. It is also not compatible with prior agreements regarding people who wish to transfer their pensions to another country in Europe.
Currently, the Netherlands only allows the transfer of accrued pension funds to a foreign pension provider under strict conditions. In practice, these circumstances make it almost impossible for citizens to take their pensions with them after moving elsewhere in the EU.
The European Commission has filed a lawsuit over this issue, which has been going on for years. The European Union executive also monitors compliance with European agreements.
In 2012, the European Commission informed the Netherlands that it believed the Dutch government did not respect European rules on the free movement of people and capital. This was followed by an exchange of letters in which the Dutch position stated that the committee’s logic was wrong.
The European Commission then referred the case to the European Court of Justice in 2022, which ruled against the Netherlands on Wednesday.
