My employer’s pension scheme:
here is how it works

You accrue pension through your employer. Your employer pays a monthly contribution for this. The employer deducts your own contribution, if any, from your salary. The contribution goes into a defined contribution scheme at Centraal Beheer PPI. This is a pension scheme in which your contribution is invested.

You can read more on this below, where we also explain which insurance policies may be part of your pension scheme.

What is a defined contribution scheme?

In this type of scheme, the contribution is fixed but the result (the pension benefit) is not. Your employer pays the contribution on your behalf each month. The amount of the contribution depends on your age: the older and closer to your retirement date you are, the higher the contribution tends to be. The contribution is deposited into an investment account that we keep in your name. We invest the contribution through our lifecycle investments.

• You accrue pension on pensionable salary up to a maximum gross salary of € 137,800.- (in 2024). We also refer to this maximum gross salary as the cap.
• The amount of the pension benefit is not fixed during the pension accrual phase. It depends on the investments and the interest rate, among other things.
• Your contribution is invested. If the investments perform well, the chance of a higher pension increases. But if the investments perform poorly, your pension may also turn out lower than expected.
• On your retirement date, you use the accrued pension capital to purchase a lifelong annual pension benefit.

Extra pension for your partner: ANW survivor benefit shortfall insurance

Your partner may be entitled to an ANW survivor benefit from the government after you pass away. This is a benefit under the Surviving Dependants Act (Algemene Nabestaandenwet, or ANW). Not everyone is entitled to such a benefit and some may receive a lower benefit. In that case, your partner’s income will fall. To cover this shortfall, you may be able to take out ANW survivor benefit shortfall insurance with us. We also refer to this as an extra partner’s pension.

Please note: Your employer may opt to include the ANW survivor benefit shortfall insurance in its pension scheme. The ANW survivor benefit shortfall insurance is not included by default. Please check your personal pension portal to see whether this option is available to you.

The benefit will stop when your partner reaches retirement age

And ultimately until the standard retirement age under this pension scheme. The extra partner’s pension is a fixed annual amount. This amount is stated in your personal pension portal.

You should take out this insurance within 3 months after joining this pension scheme

While you can still do so after 3 months, the insurer in that case may request a health declaration and medical examination. If you did not have a partner before and have since met one, please inform us within 3 months after you met your partner.

Stopping the ANW survivor benefit shortfall insurance

If your pension scheme includes an ANW survivor benefit shortfall insurance as an option, you may stop such insurance at any time of your choosing. If your employer opted for a mandatory ANW survivor benefit shortfall insurance, you cannot stop this insurance yourself.

The insurance will stop automatically when you leave the employment of your employer. You do not accrue an insured amount. If the insurance is stopped, the value will lapse. You can easily subscribe to or unsubscribe from extra partner’s pension through your personal pension portal.