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Your employer pays a monthly Defined contribution pension premium 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 Defined contribution pension

When you start a pension plan, you build up (accrue) pension by investing. This is a employee Benefit. We call this your Defined contribution 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) your Defined contribution value into a guaranteed pension.

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

1. Defined contribution pension.
2. Defined benefit pension.

Defined contribution pension investments

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 investing	Disadvantages of investing
It is possible that the return on the Defined contribution pension premium 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.

Defined contribution pension or purchasing a guaranteed pension

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

[Read more…] about Defined contribution pension or a guaranteed pension?

Good pensionmanagement 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.

Pension defined contribution premium online

Questions to be asked pensionmanagement

• 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?

Pensionmanagement = Employee benefit

Good pensionmanagement 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.

Pension balance

The key to good pensionmanagement, 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.

Pensionmanagement specialist

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.

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If you think I might be able to help you with pensionmanagement
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

English contact form General (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances Bedrijfspensioen - berekening Eigen pensioen bijdrage 2024 berekenen DGA pensioen - berekening Premie Arbeidsongeschiktheid collectief offerte Arbeidsongeschiktheid ZZP of DGA offerte Adviseurswijziging bestaande verzekering Overzicht alle bedrijven verzekeringen

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Every Dutch pension plan is a customised product and needs regulation. 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.

Information Employee Benefits Netherlands

Employee liability and managerial liability are risks that can significantly affect the business profits in the Netherlands. There are few experts in the Netherlands who can advise in terms of the working conditions for the employees, pension, and business risks. Therefore, when choosing an Dutch adviser, take the advisor who is qualified and in possession of all the obligations that the supervisor requires.

Gerrit-Jan Doorneweerd is an independent insurance broker that meets all the requirements. The pension advice, Employee Benefits Netherlands and Business insurances are therefore in good hands with me and my company.

Options Dutch pension plan

Pension plans in Dutch pension plan offers members a range of options. It is important to make sure that you are properly informed on options such as:

1. Opting for a higher pension (the benefit they will receive upon retirement) in exchange for a lower partner’s pension (the pension your partner will receive after your death) and
2. a higher partner’s pension
3. Retiring earlier or later.
4. Opting for variable pension benefits.
5. Part-time pension.

A (Dutch) online calculation page

Higher Dutch pension regulation

[Read more…] about The solution for the Dutch pension regulation

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 (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances

Pension accrual and the 30% rule (30 percent ruling) for expats

If certain conditions are met, expatriates may be eligible for the 30% rule. This arrangement means that there is a tax-free allowance which will be given up to 30% of wages. The tax free fee is for the extra cost of the temporary residence of the expat in the Netherlands. This allowance is tax not paid.

Pension benefits

In principle you usually do not build up pension on the tax-free reimbursement of the 30% rulers. The pension benefits granted by your employer are based on your taxable salary; thus lower since the “top” is taken off as a tax free reimbursement.

Exceptions

The main rule is that the 30% reimbursement gives no accrual pension. However there are two exceptions:
1. Incoming employees accruing pension over the 30% rule with an initial accrual pension prior to July 1, 2002. The pension may be continued until the end date of the existing approval of the tax authorities with the relevant employer. This exception applies until July 1, 2012 (or earlier termination date of 30% Decision);
2. If exchange of remuneration components held under a cafeteria plan.

Comment

Due to the 70% level of pension salary the widows and orphans pensions are also 30% lower. This gap is easily compensated with a private life insurance.

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

Information and Calculations

English contact form General (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances

Step 1
Six months before retirement, an employee will receive a letter from the pensioninsurer of pensionfund containing:

• A statement of the regular pension benefit.
• Any options available (earlier or later retirement, etc.).
• A form to supply any missing personal details.
• A payroll tax statement.
• A statement with respect to conversion of dependant’s and retirement pensions.

Step 2
An employee provides the pensioninsurer of pensionfund with:

• A completed form before the retirement date.
• The payroll tax statement.
• The conversion statement, if applicable.

Step 3
The pensioninsurer of pensionfund carries out the administration.
Theu process the information supplied and determine the final entitlement.

Step 4
The pension insurer of pensionfund makes the initial pension payment to your employee in accordance with the pension regulations.

Tip: It can be profitable for an employee to combine different pensions and annuities. 

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