A brief guide to your pension scheme. - Your pension scheme on 1 January

Transcription

1 A brief guide to your pension scheme - Your pension scheme on 1 January

2 2 Please note that the information in this brochure is general, indicative and subject to change. It was accurate at the time of print and serves as general information for pension scheme members. Please note that use of the information in this brochure is entirely for the user s risk. Neither TKP Pensioen, nor the pension fund can be held liable for any damage that is the result of inaccuracies in the information, or for damage caused by the use, reliance on, or dissemination of this information. No rights may be derived from pension regulations other than those applicable to the member.

3 A brief guide to your pension scheme Table of contents 1. Your pension scheme pagina Your pension scheme pagina What can you expect from your pension scheme? pagina Income for later pagina Income for your surviving dependants pagina Your pension if you are incapacitated for work pagina 6 2. How do you accrue pension? pagina Pension accrual pagina Continuation of pension accrual on incapacity for work pagina Employer s payment reservation pagina 7 3. How does your pension retain its value? pagina 8 4. Value transfer pagina What is value transfer? pagina Why value transfer? pagina Procedure for value transfer pagina 9 5. What are your obligations and options? pagina Your pension needs your attention pagina Towards a tailored pension pagina Your pension in safe hands pagina Legal protection pagina Complaints pagina More information pagina 13 Definitions pagina 14 Abbreviations pagina 15 3

4 1. Your pension scheme You are a member of Stichting Douwe Egberts Pensioenfonds (DEPF). This brochure is a brief guide to your pension scheme, the applicable regulations, and which developments in your private or professional life may affect your future income. If, after reading this brochure, you need more information, you will find a number of handy pointers in the last chapter. This brochure is for employees of Douwe Egberts who are members of the DEPF pension scheme. For the pension regulations, please go to Your pension scheme Your pension scheme is a career average scheme based on a defined benefit agreement. Each year, you accrue pension based on your pensionable salary, subject to a maximum and taking into account the so-called franchise (for a definition, please see page 18). The pension that you will receive when you retire will be based on the average salary over which you accrued pension during the years you were a member of the pension scheme. 1.2 What can you expect from your pension scheme? As a member of the DEPF pension scheme, you are entitled to: income for later: this is your retirement pension which commences when you turn 67. income for surviving dependants in the event you die: partner pension and orphan s pension. continued payment of your pension contribution if you become incapacitated for work; you will continue to accrue pension if you are unable to work due to illness or disability. Each year, you will receive a Uniform Pension Statement (UPO). This tells you exactly what you have accrued and how you can expect your pension to develop in future. 1.3 Income for later The state pension This pension scheme is based on the assumption that you will receive a state pension. Under new legislation that came into effect in July 2012, the state pension commencement age is to be raised in ten steps between 2013 and 2022, from age 65 to age 67. If you lived abroad in the 50 years before your state pension age, you may receive less state pension. For more information, contact the Social Insurance Bank ( DEPF retirement pension When you retire, you will receive a state pension, a monthly pension payment from DEPF for as long as you live, and any other pension entitlements you may have. The standard retirement age is 67, but there is also an option to take early retirement, including part-time retirement. The earliest pension commencement date under the current rules is age 60. Note, however, that advancing your retirement age will mean lower pension payments (see also 5.2 and the regulations on the website). 4

5 A brief guide to your pension scheme 1.4 Income for your surviving dependants Surviving dependants pension from the government When you die, your partner and/or children may be entitled to a state pension. This is arranged under the General Surviving Dependants Act (Anw). Your surviving partner may qualify for such a pension if he or she has not yet reached the state pension age and: was born before 1950, or has a child under the age of 18, or is incapacitated for work for at least 45%. The size of the state pension under the Surviving Dependants Act for your partner depends on your partner s income. More information on this subject is available from the Social Insurance Bank, the agency that arranges this on behalf of the government. For more information, go to The company also offers a voluntary scheme as a supplement to the surviving dependants pension from the state, independent from the pension fund. For more information, go to the Handboek Tertiaire Arbeidsvoorwaarden or the HR Plein on Insite. Who is regarded as your partner under the new pension scheme? Your partner is the person: you are married to, or who is your registered partner you cohabit with, as laid down in a notarial cohabitation contract 5

6 Do you need to notify the pension scheme of your partner? You do not need to notify us if you have a partner. When your pension commences, we will check if you have a partner. If you cohabit with a person without being married or without registration in the civil register, we will ask the partner for the cohabitation contract. Proof must be provided if there was a partnership that meets the conditions of the pension regulations. If a cohabitation contract is terminated, the pension fund must be notified if the pension is to be divided. DEPF partner pension When you accrue retirement pension, you also accrue partner pension. We also provide cover for orphan s pensions. The size of the partner pension and the orphan s pension depends on how much retirement pension you have accrued. If you leave the pension scheme or if you retire, you can convert your accrued partner pension into a higher retirement pension. As long as you accrue pension, a supplement to the partner pension (temporary surviving dependant pension) is insured. If you die, the partner pension to be paid out is based on the pension you would have accrued until your retirement. The insurance stops if you are no longer a member in the pension scheme. How much you will receive depends on your incapacity for work percentage and your income before you became incapacitated for work. As a member of the pension fund you do not have additional insurance for an invalidity pension. The company does provide insurance cover if you so wish. For more information, please read your collective bargaining agreement or individual employment contract, or go to the HR Plein on Insite. The next chapter sets out the rules that apply to your pension accrual from the moment you become incapacitated for work. 1.5 Your pension if you are incapacitated for work Have you been ill for more than two years (the statutory 104 weeks) and have you been declared unfit for work for more than 35%? Then you qualify for a payment for incapacity for work. You receive this payment under the Work and Income Act from the Employee Insurance Agency (UWV). 6

7 A brief guide to your pension scheme 2. How do you accrue pension? 2.1 Pension accrual From January 2014, every year that you work for your employer, you accrue pension over the pensionable base applicable to you that year. The accrual percentage is 2.15% of the pensionable base. Added together, these sums make up your pension. The pensionable base equals the pensionable salary minus the franchise. The franchise is the part of the income over which you accrue no pension. This is because you will qualify for a state pension from your retirement date. The franchise for 2013 is 13,394. The introductory letter will state the amount for Defined contribution scheme If your pensionable salary exceeds 70,000, you will be included in the defined contribution scheme (BPR) for the part that exceeds the maximum. This maximum is fixed for now. When and how it will increase is set out in the pension regulations. The BPR scheme is administered by Pensional. Information about this BPR scheme is issued separately by Pensional to the members in question (see also Continuation of pension accrual in the event of incapacity for work If you become incapacitated for work according to the Work and Income Act, either fully or partly, you are entitled to a full or partial continuation of your pension accrual. Your pension accrual will continue in full or in part, depending on your incapacity for work. The greater your capacity to work, the lower your pension accrual. 2.3 Employer s payment reservation The collective bargaining agreements stipulate that a substantial part of the pension contribution is to be paid by the employer. The employer reserves to right to reduce or end payment of these contributions in the event of a serious change in circumstances, for instance if the employer is granted protection from its creditors. 7

8 3. How does your pension retain its value? Supplementation for active members To make sure your pension will retain its value, it may be supplemented. Supplementation for members who are still accruing pension is conditional and is paid subject to the pension fund s financial resources. This means that full supplementation may not always be possible. The pension fund aims to pay conditional supplementation in line with the Coffee and Tea (C&T) collective bargaining agreement. No money has been reserved for future conditional supplementation, and the conditional supplementation does not play a role in determining the size of the pension contributions. As a transitional scheme, a pension fund reserve was set up in 2011, with the aim of supporting supplementation for active members. This is referred to as the Supplementation Reserve for Active Members (TRA). Each year, the Board of the pension fund decides if a conditional supplementation from the financial resources and TRA is to be paid, and how much. The TRA also applies to new members and therefore applies to you too. Supplementation for inactive members From 1 January on, supplementation to the pension entitlements of ex-members, ex-partners and the pensions that have commenced is conditional and is paid subject to the pension fund s financial resources. This means that full supplementation may not always be possible. Each year, the Board of the pension fund decides if a conditional supplementation is to be paid, and how much. The pension fund aims to pay supplementation in line with the derived consumer price index all households (published by Statistics Netherlands). No money has been reserved for future conditional supplementation, nor does the conditional supplementation play a role in determining the size of the pension contributions. 8

9 A brief guide to your pension scheme 4. Value transfer You do not accrue any pension if you are no longer a member of the pension scheme. Naturally, you remain entitled to the retirement pension, partner pension and orphan s pension you have already accrued under the relevant pension scheme. If you change employers, you may opt to transfer the value of your pension. 4.1 What is value transfer? The pension you have accrued has a certain value. Value transfer is transferring this value from your old to your new pension administrator. Your new administrator then converts this value into pension entitlements under your new pension scheme. 4.2 Why value transfer? Significant differences exist between pension schemes. This is determined, for instance, by the security of your further pension accrual. A value transfer may be useful, but not always. If you have any questions, you can contact the pension desk (depensioenfonds@tkppensioen.nl). 4.3 Procedure for value transfer You must apply for value transfer with your new pension administrator within six months of joining your new pension scheme. Your new administration requests your pension details from the former pension administrator, and sends you an offer. This offer will state how much pension you will receive under the new pension scheme for the pension you accrued under the previous scheme. If you agree to the offer, the actual transfer is arranged. This may take a while. Please note! It may be difficult to assess the value of your pension. Therefore, seek professional assistance when you transfer your pension value. If you are also a member of the defined contribution scheme (BPR), the value received is always divided over the two schemes, pro rata to the base of the two schemes. DEPF will transfer the part allocated to the BPR to the administrator of the BPR. 9

10 5. What are your obligations and options? We expect you to cooperate in the proper implementation of this pension scheme. You must notify the pension fund of any information relevant to the emplementation of the scheme. 5.1 Your pension needs your attention Some events in your private or professional life may affect your pension. It is vital that you take steps to guarantee the best possible pension for you in that case. Contact your pension fund if you cohabit, marry or divorce change jobs or employers emigrate work part-time take unpaid leave stop working lose your job become incapacitated for work Go to our website for more information, or contact the pension desk for advice. 5.2 Towards a tailored pension You are a member of a pension scheme that offers you a number of options when you retire. This means that there is some room for you to adjust your DEPF pension payments to your personal wishes. You have the following options: in consultation with your manager you can take early retirement (from the age of 60) and opt for a part-time pension; you may convert your right to a partner pension into a higher retirement pension you may convert part of your right to a retirement pension into a higher partner pension following your retirement you may opt to receive a higher pension for a particular period, followed by a lower pension for as long as you live. if you decide to take retirement before your state retirement date, you may buy for this period a state pension from the pension entitlements you have accrued. This is a standard overview of the options offered by your pension fund. Whether or not these options apply to you depends on your personal circumstances. Use the planner tool you will find on your personal web portal to calculate the financial implications of the various options. You will be informed by the pension fund some months before your retirement date. Do you wish to take early retirement? For more information go to or contact the pension desk about what is possible for you. 10

11 A brief guide to your pension scheme 6. Your pension in safe hands 6.1 Legal protection Under the Pensions Act, your pension fund is obliged to retain sufficient funds to protect your pension. The DEPF Board is responsible for the long-term financial position of the pension fund. In its investments, it balances risks with making sufficient returns. If the pension fund has insufficient capital, it must repair this within the terms stipulated by law. De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets are the regulatory bodies that supervise all pension funds in the Netherlands. Unfortunately, despite these precautions, DEPF cannot give an absolute guarantee that the accrued pension entitlements will be paid out in full. The Board remains authorised to lower pension entitlements and payments where necessary. The risk that it will do so remains very slim, however. 6.2 Complaints If you have any complaints about your pension scheme, please follow the pension fund s complaints procedure. This starts by contacting the Pensions Director to try and find a solution. If you are not happy with the outcome, you can file a complaint with the Pensions Ombudsman. For more information, please go to 11

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13 A brief guide to your pension scheme 7. More information For more information about your pension scheme, including the formal pension regulations, go to and then to the age 67 scheme. For your personal details, log onto your personal web portal. For an overview of your pension entitlements and your state pension, go to a website run by the national Pensions Register Foundation. If your pensionable salary exceeds 70,000 and you want more information about the BPR scheme, go to the private web portal You will need the login data you receive from Pensional following your registration at BPR. For questions or more information about your pension, please contact the pension desk. You can contact the pension desk on workdays from 9 am to 5 pm by phoning +31 (0) Or you can send an to depensioenfonds@tkppensioen.nl. information about the applicability of an instruction by the regulator of the pension fund information about the appointment of a court-appointed administrator information about the implications of conversion of pension entitlements. For a full copy of the pension regulations, go to the website, under the header Publicaties (publications). To keep you informed of relevant developments, we will send you our quarterly Newsletter. If you also wish to receive our digital newsletter which comes out six times a year, please go to our website and enter your address. We hope that this brief guide to your pension has been helpful in explaining to you what income you can expect after you retire. More information is available on www. depensioenfonds.nl. If you wish, you may also find information about: the pension regulations that apply to you the annual report and accounts of the pension fund the administration agreement investment information that is relevant to you a statement of your accrued entitlements the statement on investment principles a description of the short or long term repair plan applicable where needed information about the coverage ratio 13

14 A brief guide to your pension scheme Definitions Citizen Service number Formerly the Sofinummer (the tax and social insurance number), this unique number is your registration number with your municipality. Commencement of employment This is the date you joined your current employer. Pension accrual commencement date The date you joined this pension scheme. Part-time percentage This is the percentage that represents how much you work compared to fulltime employment. For instance: a person works half days (20 hours per week) where fulltime employment is 40 hours. The part-time percentage in this case is 50. Pensionable salary The pensionable salary equals the sum of the fixed monthly salaries, the holiday allowance and any other components provided for in the pension regulations. The reference date is the date you commenced employment. Adjustments are applied on 1 January of each year. Franchise When you retire, you will receive a pension from the state. This means you do not have to accrue pension over part of your income. The part of your income over which you accrue no pension is referred to as the franchise. The franchise is adjusted annually based on wage developments. The franchise for 2013 was 13,394. Pensionable base The pensionable base equals the pensionable salary less the franchise. Accrual percentage The retirement pension to be accrued is 2.15% of the pensionable base per member year. Accrual takes place while you are a member, until the first of the month in which you retire. Supplementation reserve active members A reserve held by DEPF, meant to support the supplementation to active members. Maximum pensionable salary The pensionable salary under the salary basic scheme is subject to a maximum of 70,000 (fixed maximum for 2014). If your salary exceeds this maximum, you fall under the BPR scheme and you will receive information from Pensional about your additional scheme. 14

15 Abbreviations AFM Netherlands Authority for the Financial Markets, regulator Anw Surviving Dependants Act AOW General Old Age Pensions Act BPR Defined contribution scheme DNB De Nederlandsche Bank, regulator DEPF Douwe Egberts pension fund TKP TKP pension, pension administrator TRA Supplementation reserve active members UPO Uniform pension statement WIA Work and Income Act 15

16 colophon Stichting Douwe Egberts Postbus CA UTRECHT This pension brochure is published by Stichting Douwe Egberts pension fund. Respond? Send an to pensioenfonds@demb.com or call +31 (0) Administrative questions? Send an to depensioenfonds@tkppensioen.nl or call +31 (0)