Partner s and orphan s pension Version 29.05.2017 Version 29.05.2017
Partner s and orphan s pension If you should die whilst working at SABIC, or you die after you have retired, then your partner is entitled to a partner s pension and your child(ren) will receive an orphan s pension. If you have worked at SABIC previously and have not transferred your pension to another pension fund, your partner or child(ren) will also receive a partner s or an orphan s pension. A rough distinction can be made between two situations: death benefits before the retirement date and death benefits after the retirement date. Death benefits before the retirement date If you should die whilst still working at SABIC the partner s pension will be 70% of the retirement pension that you would have accrued if you had worked at SABIC until your state pension age. The orphan s pension for each child is 14% of this retirement pension. If both parents should die, the orphan s pension is 28% per child. If you should die whilst you are still employed by SABIC, your partner will receive, in addition to the partner s pension, until he or she reaches the state pension age, a supplementary partner s pension and a temporary partner s pension. Supplementary partner s pension is a fixed sum, which can change every year, of 15,209 gross a year (as at 2017). The supplementary partner s pension is intended to compensate for the fact that your partner will not receive a general state benefit until the state pension age. The temporary partner s pension amounts to 14% of the retirement pension. Partner In this brochure, the word partner should be read to include: A person to whom you are married or who is registered as your partner in the civil registers. A partner is also a person with whom you have a notarial cohabitation contract, provided you have registered this partner with SPF. A partner can also be your brother or sister but not your child, a parent or a grandparent. A man or woman you marry after your retirement (or with whom you enter into a registered partnership or notarial cohabitation contract), is not eligible for a partner s pension from SPF. Your partner receives this because, until he or she reaches the pension age, larger amounts of for example tax are withheld. If you no longer work at SABIC when you should die (before the pension age), your partner and child(ren) may receive a pension. The percentages will then also be 70% (partner) and 14% or 28% (child (ren)). However, only the pension you accrued whilst working for SABIC will count towards this. The period from the date when you left SABIC to your retirement date will not count. If your partner is under the state pension age, he or she may be entitled to the aforementioned temporary partner s pension. Another important condition for this is that the SPF pension has not been transferred to another employer s pension provider. Version 29.05.2017 2
Both the partner s pension and the temporary partner s pension is reduced by 2% for each year that your partner is more than 10 years younger than you are. General Dependents Act [Algemene nabestaandenwet ] (ANW-benefit see box below). Death benefits after the retirement date If you should die after your retirement, your partner will also receive 70% of the retirement pension that you receive from SPF. If the surviving partner has not yet reached the state pension age at the time of your death, he or she may also be entitled to the aforementioned supplementary partner s pension or temporary partner s pension. However, if at the start of your retirement you opted to exchange the partner s pension (partially) for a higher retirement pension, your partner will not or only receive a partial partner s pension. Both the partner s pension and the temporary partner s pension is reduced by 2% for each year that your partner is more than 10 years younger than you are. A partner who did not become your permanent partner until after your retirement will not receive a partner s pension. That also applies to children you have after your retirement. In some cases, your partner and your children may be entitled to a benefit under the ANW-benefit from the government Although the ANW is intended for anyone who lives or works in the Netherlands, your partner will not automatically receive a such benefit on your death. The partner will only receive a benefit if he or she is younger than the state pension age and if you have lived and worked in the Netherlands. The benefit also depends on your partner s income and on some other conditions: Your partner hasn t received yet the state pension age; or Your partner still cares for a child under the age of 18; or Your partner is at least 45% disabled. For more information about the ANW benefit, visit the Social Insurance Bank [Sociale Verzekeringsbank] website at: www.svb.nl. Death benefits and PPS balance If you die before taking your pre-pension and you are married, then your PPS balance is converted in a (temporary) partner's pension. The same applies if you and your partner have a notarial cohabitation contract or a registered partnership. This is not the case if you die when your pre-retirement (pre-pension or early pension) has already begun, or if you are not married. The pre-pension savings balance then passes into general funds, as determined by law. Version 29.05.2017 3
Net Pension Scheme (NPS) and partner s and orphan s pension Under the collective basic pension scheme, pension is accrued up to a maximum salary of 103,317 euro gross per annum. Apart from the collective scheme, there also is a scheme providing pension accrual on the salary exceeding the amount of 103,317 euro the Net Pension Scheme (NPS). Participation in this scheme not only entitles you to a higher pension, but also covers a partner s and orphan s pension based on this salary in the event of death before your retirement. If you choose not to participate in the NPS, then you are only entitled to pension accrual under the collective basic scheme, based on your salary up to 103,317 euro. Also, the risk cover for dependants pension will be based on a maximum salary of 103,317 euro. Click on the icon Net pension for more detailed information on the subject. Orphan s pension The orphan s pension is paid until a child s 18 th birthday. However, if the child is in education, the orphan s pension can continue until the age of 27. Foster children or stepchildren may also be eligible for orphan s pension. The board of the pension fund decides this. The child must always have been part of the member s household up to the time of his or her death and must have been cared for and brought up as his or her own child. Foster children or stepchildren are not eligible for orphan s pension if they did become part of the family after the pension member retired. Partner s pension after divorce If you should die, a former partner from whom you are divorced may be eligible for a partner s pension and a temporary partner s pension. This partner s pension for the former partner is called the special partner s pension and amounts to 70% of the pension you have accrued with SPF up to the date of the divorce. The situation can be completely different if you and your partner made a different agreement about the partner s pension in a pre-nuptial contract, a divorce agreement or in a notarial termination of a cohabitation contract. Partner s pension and taxes In exceptional situations (salary over 600.000 approx.) the temporary partner s pension may be reduced. According to Tax law the net partner s pension before the state pension date cannot exceed the net partner s pension amount paid after the state pension date. SPF calculates this amount based on the partner s pension effective date. Once the partner s pension from the effective date has been assessed, it will not change due to this tax legislation. Your partner will be informed of this before the partner s pension takes effect. Version 29.05.2017 4
Re-marrying / renewed partnership What to do upon death? If you were living in the Netherlands when you died, your dependents do not need to report your death to the pension fund. The fund will automatically be notified by the Municipal Personal Records Office (BRP) Basis Registratie Personen. However this is not the case if you lived abroad. Your dependents must then notify the fund by sending SPF a copy of the death certificate. If you were cohabiting but were not married and did not have a registered partnership, your partner may also be eligible for a partner s pension provided that he or she has been registered with SPF. After your death, your partner must submit proof that he or she was in fact still cohabiting with you. He or she can prove this with an extract from the civil register showing that you were cohabiting before your death. Your partner must also show the notarial cohabitation contract, if SPF has not already seen it. You must also have started cohabiting before you retired. Your partner or children will receive partner s pension or orphan s pension from the first day of the month following your death. If you should die after your retirement date and your partner remarries or enters into a renewed partnership, your partner retains his or her partner s pension. If you should die before you retire and your partner is younger than the state pension age, and remarries or enters into a renewed partnership, he or she loses part of the partner s pension. (Part of) the temporary partner s pension and the whole of the supplementary partner s pension is also cancelled. Version 29.05.2017 5
Death benefits whilst employed by SABIC Partner younger than the state pension age receives until the state pension age: - Supplementary partner s pension - Temporary partner s pension - (Sometimes) ANW from the government Partner older than the state pension age receives: Partner who is more than 10 years younger than you - Both the partner s pension and the temporary partner s pension is reduced Death benefits after end of employment (deferred pensioner) + pension entitlements not transferred to another pension fund Partner younger than the state pension age/age 65* receives until the state pension age/age 65*: based on accrued entitlements with SPF - Temporary partner s pension (possibly) Partner older than the state pension age/age 65* receives: based on accrued entitlements with SPF Partner who is more than 10 years younger than you - Both the partner s pension and the temporary partner s pension is reduced Death benefits after retirement following employment at SABIC Partner younger than the state pension age/age 65* receives until the state pension age/age 65*: - Supplementary partner s pension - Temporary partner s pension - (Sometimes) ANW from the government Partner older than the state pension age/age 65* receives: Partner who is more than 10 years younger than you - Both the partner s pension and the temporary partner s pension is reduced * Depending on the regulations that apply to you Version 29.05.2017 6
Contact If you have any questions about your pension visit the website: www.spf-pensioenen.nl or contact our Pension Desk: tel. 045-5788100 or email: info.pensioenfondssabic@dsm.com Regulations Read more about partner s and orphan s pension in the pension regulations by clicking on the icon. Disclaimer The information provided in this brochure by Stichting Pensioenfonds SABIC, based in Sittard (the pension fund) is general, purely indicative and subject to change. It is intended only to provide members with a general view. The information provided is assumed to be reliable, but is used entirely at the user s risk. Neither the administrator (DSM Pension Services B.V.), nor the pension fund accepts any liability for damage arising from errors or omissions in the information, or for damage arising in connection with the use of, reliance on, or distribution of the information. Rights can be derived only from the pension regulations applying to the member. Version 29.05.2017 7