Pension benefits Netherlands 2020 easy scheme

Pension benefits Netherlands are a set of financial arrangements providing your employee with an income upon retirement. A retirement plan generally consists of three parts:

1. A statutory state pension benefits Netherlands

Pension benefits Netherlands

From the age of 67/68, everyone who lives in the Netherlands receives a state pension under the General Old Age Pensions Act (Algemene Ouderdomswet AOW). State Pension benefits Netherlands. The Dutch AOW pension (paid under the National Old Age Pensions Act, AOW) is a basic state pension. As a rule, everyone who has reached the AOW pension age and lives or has lived in the Netherlands is entitled to an AOW pension. SVB will pay your AOW pension with effect from the day you reach the AOW pension age that applies for you. It makes no difference in which country you live at that time.

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2. Employer Pension benefits Netherlands scheme

Under the administration of an insurer or pension fund, the contributions paid by you and taken from your employee’s paycheck accrue to the retirement benefit of your employee. The pension fund will provide information on the target pension and accrued value in the annual uniform pension statement (UPO).

Calculation pension contribution employee (dutch)

Calculation defined contribution scheme

3. A supplementary Pension benefits Netherlands

Your employee may have made private arrangements to supplement his pension through savings, investments or an annuity from an insurance company or pension fund. This is not a pension benefits Netherlands because there is not an employer involved.

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The employee pension contribution 2020 calculation

A free example of a employee pension contribution.

employee pension contribution 2018

At the end of the month of January , everyone will receive a new payroll. For employers, it is therefore important (if applicable) to state the new own pension contribution. The calculation of the own contribution is as follows.

If there is an employee pension contribution in a pension scheme, then this contribution is often a percentage of the pension salary. (for example 4%). Pension salary = Full-time Annual Salary minus State pension franchise.  This fulltime Pension salary times the part-time percentage yields the correct pension salary. The employee pension premium contribution is thus a percentage of this salary.

A calculation example employee pension contribution

  • Salary € 34,167, – fulltime
  • State pension franchise (2020) € 14.167, – fulltime
  • Pensionsalary € 20,000, -fulltime
  • Part-time percentage 80%
  • Pensionsalary € 16,000, –
  • Employee pension premium contribution (for example ) 4% per annum € 640, – per year
  • Per month € 53.33 employee contribution
  1. Maximum pensionable salary is set at aprox. € 108,000.
  2. Forgotten employee pension contribution. Has your own pension contribution been forgotten on the salary slip? An employee can make up for this by paying it immediately via the next pay slip. Sometimes an employer also offers the opportunity to spread this over a period of the next 12 months.
  3. Overpaying your own pension contribution. Please note that you will never be able to calculate your own contribution more than the premium is paid by the employer.
  4. “Pension Distance Declarations” are out of the question. Here are the reasons. If you want to register an employee for the pension scheme, then think about a number of things. The date in service is usually set for example on 1 January , while the actual date in service may be far in the past. This can be a problem especially for the survivor’s pension. In that case, too little survivor’s pension is insured. Clearly state the expiry of the waiver so that it is official and accurate.
  5. Partner definition. If in doubt, check the partner definition in a employee pension contribution. This differs from the tax partner definition. A pension fund or insurer sometimes makes specific demands on the partner definition.
  6. Registration. Always report changes to the pension advisor. They help and correct where necessary. You will always receive a confirmation. That is so easy because from then on we take care of everything.
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Brexit product liability insurances 2020

Brexit product liability insurances 2019 will be a tour de force to create a new balance. If something is wrong with your product that you have sold, and a buyer encounters property damage of personal injury, you may be liable as a producer. Due to the impending departure of the United Kingdom from the EU, product liability also changes. To get a clear understanding of the future situation you have look from different perspectives of Brexit product liability insurances:

Before Brexit

1. You are a UK-based company and sell your products in the EU-zone.

Brexit product liability insurances

Your product liability in the current situation is that you are an inside EU-producer. A customer can claim his financial damages directly as the producer if your product is the cause of an accident or damage. This is due to the current European legislation. Product liability insurers have clauses which incorporate this risk.

2. You are a EU-based company and sell your products in the UK.

Before Brexit the UK is within the EU-zone. Therefore, your product liability before Brexit is that you are an inside EU producer. A UK-customer can claim a financial loss directly if your product is cause of an accident or damage. This is also due to the current European legislation. Product liability insurers have clauses which incorporate these Brexit product liability insurances.

Retailers and consumers in the UK en the other EU countries are always allowed to sue you directly if there is a product liability. Retailer who sell your products are not liable can be transfer the claim to the EU producer.

After Brexit

1. You are a UK-based company and sell your products in the EU-zone.

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Dutch insurances and Dutch pension 2020


Dutch insurances & pensions are not mandatory. But most businesses want to insure their Dutch employee benefits (pension, illness en disability) and their business risks. Below you find a summary of some aspects of the Dutch insurances and risks in the netherlands.

General liability insurance

Dutch insurances

Business owners obtain general liability insurance to cover legal hassles due to accident, injuries and claims of negligence. These Dutch insurances safeguard against payments as the consequence of bodily injury, property damage, medical expenses, liability claim, slander, the cost of defending lawsuits, and settlement bonds or judgments required through an appeal procedure. This kind of Dutch insurances is not too expensive (relatively) and is an important business insurance; a no-brainer. These insurances are a part of the Dutch insurances & Employee Benefits.

Professional liability 

Business owners providing services should think about having professional liability/ Indemnity cover (additionally acknowledged as errors and omissions insurance). This form of liability coverage protects your business against misconduct, errors, and negligence in provision of services towards your customers. Depending on your profession, you may be required by your government to hold such a policy. Professionals are often obliged to procure malpractice insurance as a stipulation of practicing in most countries. This Dutch insurances are a part of the Dutch Insurances & Employee Benefits.

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Dutch liability insurances 2020. 6 variations

Dutch liability insurances are important for English firms with a subsidiary in The Netherlands. You will have to get informed about the different kinds of liability insurances which mitigates the company risks in The Netherlands. Most of the insurances are voluntary but some of them are mandatory (all motor vehicles). We can help you in choosing for the right Dutch liability insurances.

A summary of the main Dutch liability insurances

Dutch liability insurances

The main 6 Dutch liability insurances are:

  • General business liability
  • Professional liability
  • Product liability. (Brexit consequences)
  • Environmental liability risks
  • Directors/officers liability
  • Cyberrisk business liability

General liability

Your company is liable  if

  1. Your company (or an employee) is responsible for damage of property of someone else. For example; if, due to a fire in your building, you are also responsible for the claims if the building of your neighbor is burned down. This general Dutch liability insurances will insure this risk.
  2. Personal damage. If your company (or an employee) causes a personal damage they will sue your company for the financial consequences.

No-brainer. This general Dutch liability insurances is voluntary but we find this insurance a no-brainer. The risk change is low, but the damages and claims can be huge. The premiums are most of the time moderate. There is a width range of different insurances with extensive coverages.

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Pension management

Good pension management depends on finding the right balance between competing interests such as attractive pensions, costs, certainty, indexing, risk and manageability. At the same time, proper account has to be taken of the interests of both the employer (the sponsor) and the employees. We have a wide-ranging experience of the various solutions that can be deployed to answer questions such as:

• How can organisations use their pension scheme to differentiate themselves from their labour market competitors?
• How can we minimise the risks and costs of their scheme?
• How can we offer participants attractive pensions in return for acceptable contributions?
• How can regulations and pension schemes be made comprehensible and operate transparently?

Good pension management enables organisations to provide pension schemes meeting the needs of current and future employees, while also helping them to achieve their organisational objectives. Good pensions mean employees can count on a financially secure retirement, while employers can attract and retain the right people at an acceptable cost and level of risk.

The key to good pension management, therefore, is to find the right balance between the various competing interests. Providing an attractive pension scheme comes at a cost, while there is also a tension between guaranteeing future pensions and preserving their value. Employers seeking to reduce risks by contracting out their pension scheme management also need to ensure they maintain sufficient control over the details of the scheme.

We have the knowledge and experience needed to advise organisations and provide them with a policy framework for resolving these issues. The wealth of knowledge built up during the sector’s long history means it has the expertise to deal with wide-ranging forms of pensions, whether they are defined benefit or defined contribution schemes or a hybrid form. And whether they are part of a sector pension fund or an organisation’s occupational fund or directly insured by an insurance company.

If you think I might be able to help you of your business
Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening and weekend.)
Please give me a call or send me your information below

Calculations

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The solution for the Dutch pension regulation

Every pension plan as a customised product The opportunities for structuring pension plans are extremely wide-ranging. Choices need to be properly substantiated as these plans cover periods of several decades, and neither participants nor sponsors want to face unpleasant surprises. We will be pleased to help you complete your pension jigsaw.

The second pillar of pension provisions is important for businesses in that it is part of the compensation and benefits packages they offer and so a way for them to attract and retain staff. This means employers need to consult their employees or employee representatives to identify the pension plan most accurately matching the characteristics and wishes of their current and future employees, the employer’s own needs and resources, the standards and agreements applying in the sector and also the prevailing legislation and regulations.

There are many ‘buttons’ to select in this respect (see box). In other words, pension plans can be customised to suit individual situations. The choices to be made include opportunities to select employee contribution and pension levels, employer contributions, opportunities to cover various risks and the freedom to choose when to start receiving or paying out pensions.

If you think I might be able to help you of your business
Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening and weekend.)
Please give me a call or send me your information below

Information and Calculations

English contact form General liability applicationform Dutch Business Insurances

Disability and death of an employee

If your employee is disabled or his or her partner has died, he or she may not only be entitled to a state old-age pension but may also be entitled to claim benefit under the Surviving Dependants Act (Algemene Nabestaandenwet ANW) and/or the Work and Income (Capacity for Work) Act (Wet werk en inkomen naar arbeidsvermogen, WIA).

If you think I might be able to help you of your business Gerrit-Jan Doorneweerd, registered Pension Advisor, Amsterdam, +31 (0)20 6200825 Mobile, 0651 471 9 – six – five. (Also in the evening and weekend.)
Please give me a call or send me your information below

Information and Calculations

English contact form General liability applicationform Dutch Business Insurances

Divorce/separation

If your employee is divorced or separated, his or her former partner is entitled to half the retirement pension built up during the marriage. The former partner can also waive this pension equalization. Such an arrangement must be set out in the divorce settlement.

Retirement pension scheme – Equalization of pension benefits

Former partners are legally entitled to half of the retirement savings accumulated during the marriage or registered partnership. Your former partner’s entitlement to these pension benefits will end at the time of your death. If your former partner should die before you, you will regain entitlement to the full pension benefits.

You and your former partner may agree to deviate from these standard arrangements. You may, for example, agree with your former partner that he or she waives pension equalization or a special partner’s pension.
Any such arrangements must be laid down in a prenuptial or postnuptial agreement or in a divorce agreement.

Partner’s pension – Divorce

Provided that an insurance policy is in place, you will have built up a partner’s pension for your partner until the date of separation or divorce. After the divorce, your former partner will retain entitlement to this pension, provided that the pension scheme provides for accrual of entitlement to a partner’s pension. He or she will receive this benefit from the date of your death. As this concerns a former partner, it is known as the ‘special partner’s pension’.

Remarriage/new partner

If you have a new partner in accordance with the definition of a partner in the pension regulations, he or she will be entitled to the remainder of the partner’s pension after deduction of the former partner’s entitlement.

Amount of the special partner’s pension

The amount of the special partner’s pension differs between pension schemes, and may depend on whether you die before or after the retirement date. Some pension schemes feature a partner’s pension on a risk basis, which means that your former partner will not receive a special partner’s pension. The insurer will notify you and your former partner, if applicable, of the amount of the special partner’s pension.

Orphan’s pension

Provided that an insurance policy is in place, your children will retain their entitlement to an orphan’s pension after your divorce. Whether they live with you or with your former partner is of no consequence to that entitlement.

  • If you think I might be able to help you of your business
    Gerrit-Jan Doorneweerd, registered Pension Advisor,
    Amsterdam, +31 (0)20 6200825
    Mobile, 0651 471 9 – six – five. (Also in the evening and weekend.)
    Please give me a call or send me your information below

Information and Calculations

English contact form General liability applicationform Dutch Business Insurances

An investment pension or a guaranteed pension?

Your employer pays a monthly contribution towards your pension. Your employer determines whether he pays the entire contribution or if you should also pay a part. What happens with your contribution depends on the choices made by your employer.

Your options

When you start a pension plan, you build up (accrue) pension by investing. We call this your investment pension. If your employer has given you the option to choose a guaranteed pension, you can use (part of) your contributions for a guaranteed pension. You can also convert (part of) you investment pension value into a guaranteed pension.

So depending on the choices made by your employer there are two possibilities:

  1. An investment pension
  2. An investment pension and/or purchasing a guaranteed pension.

An investment pension

The insurer invest the contributions towards your pension by default using the so-called Lifecycle method. Lifecycle investing includes lowering the risks of the investments as you get closer to the retirement date. The idea is that if you are about to retire, you also prefer more certainty about the amount of your pension. If your retirement date is still far in the future, you have more time to compensate for any setbacks. Therefore it is wise to take a little more risk during this early phase with the aim to obtain a higher return. Depending on the choices made by your employer, you can choose to invest in a different way by taking more or less risks.

Advantages of investingDisadvantages of investing
It is possible that the return on the investments is higher than expected. Your final pension will then be higher than expected.The amount of pension that you will receive is uncertain. If the returns are lower than expected, your final pension will also be lower than expected.
Depending on the choices made by your employer, you can modify your investments to suit your personal situation. 

An investment pension and/or purchasing a guaranteed pension

By default, insurers invest your contribution using the Neutral Lifecycle. Once a year you can determine whether you want to build up (accrue) a guaranteed pension in addition to investing.

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