Ticking clock for pension contributions: when is too late really too late?⏰

On 21 March 2025, the Supreme Court issued an important judgment on the limitation period for claims for payment of pension contributions by industry pension funds. This ruling provides clarity on a point that regularly leads to disputes in practice: when does a pension fund's claim against an employer lapse?

In this ruling, Booking.com was sued by an industry pension fund for failing to pay its employees' pension contributions on time. Booking.com took the position that the claims were time-barred.

According to Section 3:308 of the Civil Code, a claim for payment of periodic amounts (such as pension contributions) is time-barred after five years from the time they become due. This provision was created partly to ensure legal certainty and prevent creditors from sitting idle for too long. But when exactly is such a premium payable?

That was the key legal question in this case. Is that the moment when the premium should theoretically have been paid (according to the regulations)? Or only when the pension fund discovers that the employer should have paid premium and therefore brings a claim?

The Supreme Court considered that, in principle, the moment of claimability is determined by what is stipulated about it in the fund's pension regulations. For example, if the fund has stipulated that contributions are due quarterly or monthly, then the contribution is claimable from that moment and the limitation period also starts to run.

However, the Supreme Court gives two exceptions to deviate from the rule of claimability. The first exception relates to when the employer deliberately withholds information regarding the payment of premium. This also applies when the employer knowingly communicates incorrect facts. In the event that the employer knowingly takes these actions, the limitation period only starts to run if the pension fund is aware of the correct facts. Another exception relates to when invoking the limitation period is unacceptable according to standards of reasonableness and fairness.

All in all, this judgment teaches us that pension funds should carefully formulate their regulations and remain active in collecting contributions. Employers would also do well to keep their records in order and be transparent towards the fund. Statute of limitations can be a powerful defence, but is certainly not a licence to remain silent or mislead.

If you have any questions, please contact Erwin den Hartog and Iris Keemink.