Compensation when switching to the new pension scheme

Under the current pension scheme, you build up your pension through a system in which everyone pays the same contribution. This is known as the average contribution system (doorsneesystematiek). But building up a pension is cheaper for younger members than for older members, because the contributions paid in can be invested for longer.

In the new pension scheme, this system disappears. The contribution stays the same for everyone, but every euro you pay in goes straight into your personal pension pot. That works out better for younger members and less well for older members. To limit the expected disadvantage for this group, the pension fund wants to offer compensation for the lower pension build-up under the new scheme.

The purpose of compensation is to make up for the lower pension build-up under the new scheme. Because of this, compensation only applies to active members: people who, at the time the new scheme comes into force, are working and building up a pension with our pension fund.

Over the coming months, the pension fund will determine exactly which age groups are eligible for compensation.

No. Pensioners and dormant members (former employees who are no longer accruing pension rights) will not receive any compensation. This is because they are no longer accruing pension rights, so the abolition of the average system will not affect them.

To decide whether you’re entitled to compensation, we compare two situations:

• How much pension would you build up if the current scheme were to stay in place?
• How much pension are you expected to build up under the new scheme?

Compensation is paid out of the funds available at the time of the transition. We expect there to be enough money available to be able to award compensation.

The Future Pensions Act (Wet toekomst pensioenen) requires the transition to be balanced. That means we take account of the interests of all members: active members, deferred members and pensioners alike. The compensation for active members is paid out of the collective pension fund. This fund belongs to all members together.

By using part of it for compensation, less money will be available to increase the pension entitlements of all members. The fund considers this balanced, because the active members in the relevant age groups are the most affected by the abolition of the average contribution system (doorsneesystematiek).

This will become clear around the time the transition date is set and your pension is converted to the new scheme. You will receive a personal message from the pension fund about this.

Yes. All active members within the same age group receive the same compensation, expressed as a percentage of your pensionable salary in the basic scheme, taking the offset (franchise) into account. That way, we treat everyone within that age group equally.

If you start working fewer hours or leave employment before the conversion date (invaardatum), this will affect the (level of) compensation you receive. That’s because, under the new scheme, this would also mean building up less pension.

This will also affect your pension. For example, buffers will be distributed during the transition. The pension fund and the social partners will ensure that the transition proceeds as carefully and smoothly as possible for all participants.