Net pension scheme. Stichting Pensioenfonds DSM Nederland

Transcription

1 Net pension scheme Stichting Pensioenfonds DSM Nederland Effective date: 1 July 2015

2 CONTENTS Page Article 1 Provisions of the basic scheme 3 Article 2 Definitions 3 Article 3 Membership 4 Article 4 Description of the pension entitlements 4 Article 5 Pension Capital 5 Article 6 Part-time membership 6 Article 7 Use of the 6 Article 8 Termination of membership before the pension age 7 Article 9 Death before the 8 Article 10 Net partner s pension on a risk basis 8 Article 11 Net orphan s pension on a risk basis 8 Article 12 Non-contributory continuation on disability 8 Article 13 Parental leave and unpaid leave 10 Article 14 Settlement of net retirement pension 10 Article 15 Special net partner s pension 10 Article 16 Conditional supplements 11 Article 17 Commutation 11 Article 18 Value transfer 11 Article 19 Reduction of acquired entitlements and rights 11 Article 20 Fiscal maximization of pension entitlements 12 Article 21 Assessment of fiscal maximum 12 Article 22 Fiscal revaluation clause 12 Article 23 Entry into effect 12 ANNEX 1: Actuarial purchase rates 13 ANNEX 2: Flexibility factors 20 ANNEX 3: Commutation 20 Juli 2015 Edition - Page 2

3 Article 1 Provisions of the basic scheme 1. The terms and provisions of the basic scheme apply to the scheme, if and insofar as they are relevant, unless otherwise stated in these regulations. 2. By way of exception to the basic scheme the articles concerning: Disability pension (Article 9); Indexation (Article 20); Financing and contributions(article 3) of the basic scheme do not apply to the scheme. Article 2 Definitions 1. The definitions in Article 1 under General provisions of the basic scheme apply accordingly in so far as they are relevant. The following definitions apply to this scheme in addition to, or instead of, those definitions. Basic scheme Member Membership years Fund returns The pension scheme in the pension regulations of Stichting Pensioenfonds DSM Nederland A member of the basic scheme who participates in the scheme with due regard for Article 3. The years between the date on which membership began and the date on which membership ended, taking account of Article 6. Membership years are determined precisely in days. The total returns on pension saving capital of all fund members invested in accordance with the basic scheme, after deducting the asset management and transaction costs applying to the scheme. The fund return is determined by the Board as a percentage, precisely to one decimal place. Pension start date The date on which the member reaches pension age, or The date chosen by the member in accordance with Article 9 of the basic scheme. Pension age For the net retirement pension, the age of 67. Net pensionable pay The sum of the (gross) pay elements listed below which, together, amount to more than the limit specified in Article 18ga of the 1964 Wages and Salaries Tax Act [Wet op de Loonbelasting] ( 100,000 as at 1 January 2015): the salary the annual bonus or holiday allowance the shiftwork allowance the public holiday allowance actually received the on-call duty allowance in so far as it forms part of the fixed annual salary as a result of permanent assignment to scheduled on-call duty the allowances pursuant to schemes relating to permanent assignment to lower-paid work for company reasons benefits under the Disability Benefits Act [Wet Arbeidsongeschiktheid (WAO)] or the Work and Income according Juli 2015 Edition - Page 3

4 to Labor Capacity Act [Wet werk en inkomen naar arbeidsvermogen (WIA)] (including holiday allowance) the income supplement pursuant to the long-term disability compensation scheme taking into account the reduction of any income over and above 100% of the income on the day before the disability began. The pension entitlements are always established on the basis of fulltime pay on the first day of each calendar month. Scheme The net pension scheme as laid down in these pension regulations. Article 3 Membership 1. Membership of the scheme begins: a. on the first day of employment, provided the employee receives net pensionable pay, but not before 1 January 2015; b. the date on which the employee begins to receive net pensionable pay, unless, within one month of joining the scheme, the employee notifies the employer by means of the appropriate form that he/she does not wish to participate in the scheme. 2. Membership of the scheme ends: a. on the date on which membership of the basic scheme ends; b. on the date on which net pensionable pay is not, or is no longer, received; or c. on 1 January following the date on which the member has notified the employer that he/she wishes to terminate membership, provided the employer has been notified of this by 1 December by means of the appropriate form. 3. By way of exception to paragraph 2 a, membership does not end if a former employee has a right to non-contributory continuation of pension accrual as referred to in Article If an employee has never become a member of the scheme as a result of the choice referred to in the last part of paragraph 1, or has ended membership as referred to in paragraph 2 c, the employee may not join or rejoin the scheme. 5. By way of exception to paragraph 4, the Board is authorized to permit an employee to join or rejoin the scheme at his/her request under conditions to be established by it. Article 4 Description of the pension entitlements 1. The scheme provides, with due regard for Article 20 and 22, pension capital that is used in accordance with the provisions of these regulations to finance: a. a net retirement pension for the member; b. a net partner s pension for the partner; Juli 2015 Edition - Page 4

5 2. With due regard for the provisions of these regulations, membership entitles the member to: a. a net partner s pension on a risk basis for the member s partner, beginning on the death of the member during membership; b. a net orphan s pension on a risk basis for the member s child beginning on the death of the member during membership; c. exemption from contributions for the member on disability. 3. The part of the regulations that relates to the entitlement referred to in paragraph 1 is a contribution agreement or pure contribution agreement as defined in Article 10 of the Pensions Act. 4. The part of the regulations that relates to the entitlement referred to in paragraph 2 is a benefit agreement as defined in Article 10 of the Pensions Act. Article 5 Pension Capital 1. On joining and every month thereafter, the member pays a contribution on the part of the net pensionable pay paid monthly. The amount of the contribution depends on the age of the member on the first day of the month in which the contribution is payable and is expressed as a percentage of the part of the net pensionable pay that is paid, multiplied by the part-time factor applying to the member. 2. The amount of the contribution is determined on the basis of the scale set out below: Age categories Percentage of the net pensionable pay 20 to to to to to to to to to to If a member s first day of employment does not fall on the first day of a calendar month, the contribution payable for the period ending on the last day of the first calendar month in which his/her employment began is established on a pro-rata basis. 4. If the last day of membership does not fall on the last day of a month, the contribution payable for the period ending on the date on which membership ends is established on a pro-rata basis. 5. The risk coverage premium referred to in Article 12, which is 1.5% of the contribution referred to in paragraph 1, and the supplements payable by the employer under the administration agreement with the fund, are borne by the employer. The risk coverage premiums referred to in Articles 10 and 11 are for the account of the member and are deducted from the contribution payable by the member as referred to in paragraph 1. Juli 2015 Edition - Page 5

6 6. The employer deducts the contribution referred to in this Article from the salary monthly and then pays it to the fund. The fund adds the contribution to the member s pension capital, after deduction of the risk coverage premiums referred to in Articles 10 and 11, after the pension capital has been adjusted by the fund returns. 7. The amount of the risk coverage premium referred to in paragraph 6 is determined on the basis of the scale set out below: Age categories Percentage of the net pensionable pay 20 to to to to to to to to to to The fund holds individual pension capital for each member which is administered individually. The saving capital is formed by the member s contributions, with due regard for paragraph 5, and is adjusted monthly by the fund returns obtained on them. Article 6 Part-time membership 1. The following applies for members in part-time employment: a. When membership years are taken into account when calculating a pension, the number of membership years is determined in proportion to the part-time factor applying to them. b. When future membership years are taken into account when calculating a pension, the last applicable part-time factor applies for this period, unless the contract of employment specifies that the part-time factor will be changed at a later date. In that case, the calculation will be based on the new part-time factor from that time. Article 7 Use of the pension capital 1. On the 1 January of each of the ten years before a member reaches pension age, part of the pension capital is used to buy an entitlement to net retirement pension and an entitlement to net partner s pension. The fund establishes the saving capital purchased annually in accordance with the formula below, provided the outcome is no less than 0.00: Purchase = (B - A) + (A x St) Where: A is the balance of the pension capital as at 1 January of the calendar year B is the balance of the pension capital as at 31 December of the calendar year St is the scale set out below Juli 2015 Edition - Page 6

7 Years to pension age Part of pension saving capital 10 1/10 9 1/9 8 1/8 7 1/7 6 1/6 5 1/5 4 1/4 3 1/3 2 1/2 1 1/1 2. By way of exception to paragraph 1, in the ten years before reaching pension age the member can determine the part of the pension capital to be used for the purchase of net retirement pension and net partner s pension during this time, provided he/she has notified the fund of this choice in writing before 1 December of the previous calendar year by means of the appropriate form. The following year, the purchase will be repeated in accordance with the formula in paragraph 1, unless the member notifies the fund of a different choice. 3. The amount of the net retirement pension and net partner s pension to be purchased as referred to in paragraph 1 is determined on the basis of the actuarial purchase rates applying at that time (see Annex 1). The actuarial purchase rates are set by the Board each year. 4. The total pension entitlements referred to in paragraph 1 must not exceed the maximum pensions referred to in Article The net retirement pension follows the member s choices for: a) the exchange of retirement pension and partner s pension referred to in Article 10 of the basic scheme, b) the deferment and early payment of the retirement pension benefit referred to in Article 9 of the basic scheme, c) the variation in the amount of the retirement pension referred to in Article 9 paragraph 8 of the basic scheme; or, d) the choice of part-time pension referred to in Article 11 of the basic scheme. The net pension entitlements are actuarially re-calculated in accordance with the choice of the (deferred) member on the basis of the factors in Annex Net partner s pension can be exchanged for (additional) net retirement pension or vice versa on the pension start date referred to in paragraph 5 a, only with the written consent of the partner. 7. If the member does not have a partner on the pension start date, all of the pension capital is used to purchase net retirement pension. Article 8 Termination of membership before the pension age 1. If the membership ends for a reason other than death or reaching the pension age, all of the pension capital at that time is immediately used to purchase a net retirement pension and a net partner s pension at the purchase rates referred to in Article 7, paragraph Non-contributory continuation on disability as referred to in Article 12 is not regarded as termination of the membership as referred to in paragraph 1. If there is a right to non-contributory Juli 2015 Edition - Page 7

8 continuation on disability, the membership ends on the date on which the right to continuation ends, but at the AOW age at the latest. 3. By way of exception to paragraph 1, if the membership ends as a result of the request of a member as referred to in Article 3 paragraph 2 c, the pension capital is invested with due regard for the provisions of these regulations until the date on which membership of the basic scheme ends. 4. The right to a net partner s pension on a risk basis referred to in Article 10 and net orphan s pension on a risk basis referred to in Article 11 lapses at the end of membership as referred to in paragraph 1 and 3. Article 9 Death before the pension age 1. On the death of the member or deferred member, the pension capital available at that time reverts to the fund. Article 10 Net partner s pension on a risk basis 1. The net partner s pension risk amounts to 1.16% of the last net pensionable pay after deduction of wage tax multiplied by the number of membership years between the beginning of membership and the pension age. 2. The net partner s pension purchased in accordance with Article 7, paragraph 1 is deducted from the net partner s pension referred to in paragraph The net partner s pension risk begins on the first day of the month following that in which the member dies. 4. The net partner s pension risk ends on the first day of the month following that in which the beneficiary dies. Article 11 Net orphan s pension on a risk basis 1. The net orphan s pension risk amounts to 0.232% of the last net pensionable pay after deduction of wage tax, multiplied by the number of membership years between the beginning of membership and the pension age. 2. The net orphan s pension risk begins on the first day of the month following that in which the member dies. 3. The net orphan s pension risk ends on the first day of the month following that in which the child: a. reaches the age of 18, b. reaches the age of 27, if and for as long as the child is studying within the meaning of the 2000 Study Finance Act [Wet studiefinanciering 2000] c. dies before the age referred to in a. or b. 4. The net orphan s pension for each child whose parents have both died is doubled. Article 12 Non-contributory continuation on disability 1. A member who has a right to continuation of pension accrual on disability or partial disability as referred to in Article 15 of the basic scheme has a right to continue accruing pension capital during the period of disability in accordance with the age-dependent scale of contributions referred to in Article 5, multiplied by the scale set out below: Juli 2015 Edition - Page 8

9 Percentage of disability Percentage of continued accrual of pension capital: 35% to 45% 40% 45% to 55% 50% 55% to 65% 60% 65% to 80% 75% 80% to 100% 100% The continuation ends when, and in so far as, the member is no longer disabled or partially disabled, or dies before reaching pension age, but at the latest on reaching pension age. 2. The accrual of the pension capital referred to in paragraph 1 is continued on the basis of the net pensionable pay applying immediately before the first day of sickness. 3. For as long as the member has a right to non-contributory continuation, the net pensionable pay stated in paragraph 2 is increased annually by a maximum of the increase in the consumer price index (CPI - All Households - derived), as determined by Statistics Netherlands. The Board can decide to limit this increase to 5%. 4. A member who is disabled or partially disabled at the beginning of membership does not have a right to continuation of the pension accrual during disability, unless the degree of disability increases. If the degree of disability increases during membership, a deferred member has a right to continuation of the pension accrual in proportion to the increase in the degree of disability. 5. If the percentage of disability rises or falls during employment with the employer or if, having fallen to less than 35%, this percentage rises to 35% or more, pension accrual continues in accordance with the percentage applying at that time. 6. A rise or fall in the applicable percentage begins on the first day of the month following that in which the percentage of disability changed. 7. As long as the member has a right to non-contributory continuation, he/she continues to be insured for net partner s pension on a risk basis and net orphan s pension on a risk basis. Articles 5 paragraph 5, 10 and 11 apply accordingly. Juli 2015 Edition - Page 9

10 Article 13 Parental leave and unpaid leave 1. During a period of parental leave or unpaid leave membership continues proportionally and a proportional contribution as referred to in Article 5 becomes available. During a period of parental leave or unpaid leave, the net partner s pension on a risk basis, the net orphan s pension on a risk basis and the right to non-contributory continuation on disability remain insured. The net partner s pension on a risk basis, the net orphan s pension on a risk basis and the right to non-contributory continuation on disability are based on the net pensionable pay and the part-time factor immediately before the date on which the leave begins. Article 14 Settlement of net retirement pension 1. In the event of separation, the pension capital accrued for net retirement pension during the marriage or registered partnership is settled in accordance with the Settlement of Pension Rights (Separation) Act [Wet verevening pensioenrechten bij Scheiding], provided the Fund has received the form prescribed by law within two years of the date of separation. 2. On separation before purchase, settlement is determined as follows: The fund calculates the part of the pension capital that was accrued during the marriage or registered partnership on the separation date. 50% (or another percentage agreed by the parties) of the pension capital determined in accordance with this paragraph is deducted from the pension capital of the member and paid to the former partner entitled to settlement. 3. On separation after purchase, the net retirement pension entitlements are settled in accordance with the provisions of Article 13 of the basic scheme. 4. Before the pension capital is distributed in accordance with paragraph 2 the amount of capital required for the acquisition of an entitlement to special partner s pension accordance with Article 15, paragraph 1 is deducted. 5. The provision of paragraph 1 does not apply if the parties have excluded the settlement of pension rights on separation in a pre-nuptial agreement, a registered partnership agreement or an agreement for separation. 6. The fund may apply this article to a termination of cohabitation as if it were separation, if both parties have agreed this in a cohabitation contract drawn up by a notary or in a notarial deed drawn up by a notary on termination of the cohabitation contract. Article 15 Special net partner s pension 1. In the event of separation, the former partner retains an entitlement to a special net partner s pension on separation. 2. The special net partner s pension on separation before the purchase date is determined as follows: The fund calculates the entitlement to net retirement pension and net partner s pension - at a ratio of 100% net retirement pension to 70% net partner s pension that could have been acquired with the available capital on the separation date. The part required to insure an entitlement to the special net partner s pension thus determined with the fund is then deducted from the pension capital. 3. The provisions of paragraphs 1 and 2 do not apply if both partners have agreed this in a prenuptial agreement or registered partnership agreement or in a written agreement for separation. The agreement is valid only if a declaration of the fund is attached to it stating that the fund is prepared to cover any pension risk arising from the deviation. Juli 2015 Edition - Page 10

11 Article 16 Conditional supplements 1. The provisions of Article 20 of the basic scheme apply accordingly to the pension benefits in payment and the net pension entitlements received at the end of membership. 2. By way of exception to paragraph 1, if the liabilities of the fund with regard to the net pension entitlements increase as a result of a difference in the increase in life expectancy between the members of the net pension scheme and the members of the basic pension scheme, the provisional indexation referred to in paragraph 1 will be reduced until this increase in the liabilities of the net pension scheme has been compensated for. 3. If the fund receives an occasional additional payment from the employer, it will reduce the conditional indexation of the net pension by the amount by which the beneficiaries and pensioners of a net pension have benefitted from this payment. Article 17 Commutation 1. Article 18 of the basic scheme applies accordingly, with the proviso that the net retirement pension entitlements and the net partner s pension entitlements after purchase, together with the retirement pension entitlements and partner s pension entitlements from the basic scheme, do not exceed the amount referred to in Article 18 of the basic scheme. The commuted value is determined on the basis of the table set out in Annex 3 for commutation of small net pension entitlements. Article 18 Value transfer 1. Article 19 of the basic scheme applies accordingly, on the understanding that: a) the fund only cooperates with an incoming value transfer of net pension where the pension scheme of the transferring pension fund provides for a net pension referred to in section 5.3B of the 2001 Income Tax Act [Wet Inkomstenbelasting]. b) the fund only cooperates with an outgoing value transfer of net pension where the pension scheme of the receiving pension fund provides for a net pension as referred to in section 5.3B of the 2001 Income Tax Act. Article 19 Reduction of acquired entitlements and rights 1. If there is a funding deficit, the fund may decide to reduce the acquired net pension entitlements and net pension rights if it is not able to comply with Article 131 of the Pensions Act within five years or with Article 132 of the Pensions Act within 7 years without disproportionately harming the interests of current and deferred members, pensioners, other beneficiaries or the employer and all other available steering instruments, with the exception of the investment policy, have been deployed as set out in the recovery plan. The provisions of Article 23, paragraphs 1 to 6 of the basic scheme apply accordingly. Juli 2015 Edition - Page 11

12 Article 20 Fiscal maximization of pension entitlements 1. The pension entitlements under these regulations do not exceed the fiscal limits applying to the pension scheme included in these regulations by, and by virtue of, section 5.3B of the 2001 Income Tax Act. Article 21 Assessment of fiscal maximum 1. At a number of times the fund assesses whether the net retirement pension and net partner s pension that can be purchased with the pension capital remain within the fiscal limits referred to in Article 20. This is always done: on every value transfer; on mutual exchange of pension; on divorce or termination of a partnership of a pensioner; on emigration of a pensioner; on a relevant amendments of the fiscal regulations; on any actual start date of any type of pension. The fund can carry out assessments at times other than those required by Chapter II of the 1964 Wages and Salaries Tax Act and the regulations based thereon. 2. The member cannot claim any rights to the part of the pension capital that is not required to purchase the maximum pensions in accordance with Article 20. If the fiscal assessment referred to in this article shows that the pension capital exceeds the amount required to purchase the maximum pensions in accordance with Article 20, the part of the pension capital that causes this reverts irrevocably to the fund. Article 22 Fiscal revaluation clause 1. If, in the opinion of the Tax Administration, one or more provisions in these regulations do not comply with the fiscal legislation and other regulations for net pension schemes, the Board is authorized to adjust this provision or these provisions where applicable retroactively so that, after the adjustment, the net pension scheme complies with section 5.3B of the 2001 Income Tax Act. This pension scheme is introduced under the condition subsequent to the scheme being a pension scheme as referred to in section 5.3B 2001 of the Income Tax Act. If it is finally found that the pension scheme does not comply with these provisions, the scheme will immediately be adjusted retroactively to the start date of the scheme, so that it complies with the provisions of section 5.3B of the 2001 Income Tax Act. Article 23 Entry into effect 1. These regulations were adopted by the Board on 16 December 2014 and came into effect on 1 January These regulations were last amended by the Board on 22 September The amended pension regulations came into effect retroactively on 1 July Juli 2015 Edition - Page 12

13 ANNEX 1: Actuarial purchase rates The following rates are used for the conversion of capital into a latent retirement pension, including the associated partner s pension, beginning on a member s 67 th birthday. Age 100 RP PP , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , A purchase as referred to in Article 7, paragraph 7 (a member who does not have a partner on the pension start date) also takes place in accordance with the above purchase rates, after which the partner s pension received is exchanged for a higher retirement pension in accordance with the factor for exchange of partner s pension. Juli 2015 Edition - Page 13

14 ANNEX 2: Flexibility factors Early payment / deferment of the net retirement pension; The table below shows the percentages by which the accrued entitlements to lifelong retirement pension must be multiplied if the benefit begins earlier / later (this assumes that the pension begins on the first of the month). Desired pension start date Multiply the accrued entitlement on the start date by Desired pension start date Multiply the accrued entitlement on the start date by Years Months Years Months % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Desired Multiply the accrued Desired Multiply the pension start entitlement on the pension start accrued date start date by date entitlement on the start date by Years Months Years Months Juli 2015 Edition - Page 14

15 Desired pension start date Multiply the accrued entitlement on the start date by Desired pension start date Multiply the accrued entitlement on the start date by Years Months Years Months % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Juli 2015 Edition - Page 15

16 Desired pension start date Multiply the accrued entitlement on the start date by Desired pension start date Multiply the accrued entitlement on the start date by Years Months Years Months % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Variation in the amount of the net retirement pension benefit; The net pension scheme includes an option to vary the amount of the lifelong retirement pension benefit. The benefit period is split into two. The amount of the benefit in the first period (which is of fixed duration) differs from that in the second, lifelong period which immediately follows it. The following tables must be used to determine the possible combinations. Pension age 60 years Period 1 Period 2 Payment Duration (years) Thus to Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 115% % 115% % 115% % 120% % 120% % Juli 2015 Edition - Page 16

17 Pension age 61 years Period 1 Period 2 Payment Duration (Years) Thus to Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 115% % 115% % 115% % 120% % 120% % Pension age 62 years Period 1 Period 2 Payment Duration (Years) Thus to Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 115% % 115% % 115% % 120% % 120% % 120% % Pension age 63 years Period 1 Period 2 Payment Duration (Years) Thus to Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 115% % 115% % 115% % 120% % 120% % Juli 2015 Edition - Page 17

18 Pension age 64 years Period 1 Period 2 Payment Duration (Years) Thus to Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 110% % 115% % 115% % 115% % 120% % 120% % Pension age 65 years Period 1 Period 2 Payment Duration (Years) Thus to Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 110% % 115% % 115% % 115% % 120% % 120% % Pension age 66 years Period 1 Payment Duration (years) Thus to Period 2 Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 110% % 115% % 115% % 115% % 120% % 120% % Juli 2015 Edition - Page 18

19 Pension age 67 years Period 1 Payment Duration (years) Thus to Period 2 Payment 80% % 80% % 85% % 85% % 85% % 90% % 90% % 110% % 110% % 115% % 115% % 115% % 120% % 120% % Exchange of net partner s pension for net retirement pension; The accrued net partner s pension can be exchanged for additional net retirement pension on the start date of the pension. The right to a net partner s pension in the net pension scheme then lapses and the right to a net retirement pension (at a pension age of 67 years) is increased by 22.09%. Juli 2015 Edition - Page 19

20 ANNEX 3: Commutation (Commuted value per 100 RP and 100 PP) Age RP67 PP , , , , , , , , , , , , , , , , , , , Juli 2015 Edition - Page 20