Your work situation changes
Is your employment situation changing? Then your pension situation may also change. Find out what you should do, or what choices you can make.
- Starting a new job
- You start working more or less
- You become disabled
- You are going on leave
- You leave employment
- You start working abroad
Starting a new job
Are you about to start a new job? Then you will probably start to build up (or ‘accrue’) a pension with your new employer. You can choose to take the pension you have already built up to the pension scheme provided by your new employer. This is known as a transfer of accrued pension rights. We also call this ‘value transfer’.
How does a value transfer work?
- You can apply to Delta Lloyd as the administrator of your new pension scheme to make the arrangements to transfer your previous pension. Your should fill in the ‘Application form for transfer of accrued pension rights (value transfer)’ [PDF] . What if you want to transfer the pension rights in a Delta Lloyd scheme to a different pension administrator? You should fill in your new pension administrator’s application form for transfer, and send it to them. You must apply for a value transfer within six months of starting your new job.
- Your new pension administrator will then contact your previous pension administrator for details of the pension you have already built up. This will happen within one month.
- Your new pension administrator will send you a quote. You can expect to receive this about four months after your new pension administrator contacted your previous administrator. The quote will tell you the transfer value, which is how much pension will be transferred into your new scheme in exchange for the pension you had already built up.
- The quote will give you the information you need to decide whether to apply for a value transfer. You have two months to make a decision.
- Your pension administrator will wait for you to sign and return the quote before proceeding with the transfer.
- You need take no action if you are happy to leave your built up pension in your previous scheme.
Is value transfer Always the right thing to do?
It is up to you whether to transfer your previous pension. Whether this would be wise will depend on the details of your old and new pension schemes. You should study the quote carefully. A financial adviser will be able to help you.
You should bear in mind that financial advice is not free. Your adviser will charge you for their services.
Value transfer is not Always possible
You can transfer a previous pension only if both pension administrators are in sound financial health. Pension funds are required to have a funding ratio of at least 100% for this reason. A value transfer will not be allowed while either administrator remains in poor financial health. If this situation applies to you, you should still apply for the value transfer within the six-month period. The value transfer will then proceed automatically as soon as financial health is restored.
What is pension commutation?
If the transfer value of your previous pension is less than a limit that is defined in law (which was € 462.88 in 2015), it will be paid out to you as a lump sum. We call this pension commutation. This means that when you retire you will not receive a pension from your previous scheme.
You start working more or less
Will you start working more or less? Then you will also build up (accrue) more or less pension. This is because your annual pension accrual depends on your salary. Your pension accrual is multiplied by your part-time percentage. You can find the part-time percentage on your Uniform Pension Statement (UPS). Check whether you expect that the pension which you will receive will be sufficient, and whether you should take action to arrange additional pension.
Do you participate in the Personal Pension Plan? Then you can log into Pension Services Online. You will gain insight into the effects which working more or less will have on your pension.
You become disabled
If you are ill for over two years you will be classed as disabled. After two years of illness the Person’s Insurance Administration Agency (in Dutch UWV) will determine your degree of disability. If the UWV determines that your degree of disability is over 35%, you will receive UWV benefits.
Are you (partly) disabled? Then Delta Lloyd will pay (part of) the contributions toward your pension. This means that you will keep accruing pension. In addition, you may be entitled to a benefit from Delta Lloyd. We call this disability pension. Are you entitled to a disability pension? Then your pension introductory letter will indicate this. We sent you the pension introductory letter when you started the pension scheme.
You are going on leave
There are various types of leave. To make things easier we distinguish two types of leave: paid and unpaid leave. Whether your leave affects your pension depends on the agreements that you have made with your employer. As a rule of thumb, your pension accrual changes if the amount of your salary changes. Therefore it is important to know whether you go on paid or unpaid leave.
You leave employment
Will you leave employment with your current employer? Then your pension accrual with this employer will stop. The pension remains yours. You can choose to leave your pension with your previous pension administrator. But you can also take your pension with you to your new pension administrator. We call this a value transfer. You should apply for a value transfer within six months after starting your employment with your new employer.
You start working abroad
Are you working abroad? This may affect your state old-age pension, as living and working in the Netherlands insures you for a state old-age pension. Every year that you are insured for a state old-age pension, you build up (accrue) 2% of a full state old-age pension. Do you live or work abroad during the fifty years before you the reach the state old-age pension age? Then you will miss 2% of your full state old-age pension for each year abroad.
It may be that you and your employer have agreed on insurance for the state old-age pension. You can also choose to remain insured for the state old-age pension. You should arrange this with the Sociale Verzekeringsbank (Social Insurance Bank).