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Pension discount in relation to unemployment benefit

As of 1 May 2018, the operation of Article 47 of the WW has been adjusted and which article provides for the settlement of income during unemployment benefit.

Adapted article 47 WW

Article 47 WW provides an answer to the question of how the amount of unemployment benefit is calculated. After this calculation has been made, the income related to work is fully deducted from the unemployment benefit. Work-related income includes, as in the past, temporary and lifelong retirement pensions.

Exceptions

Until May 1, 2018, there were two exceptions to the discount scheme, viz

  • A part-time pension is not set off against the unemployment benefit, insofar as this part-time pension is related to same (remaining) employment from which the person concerned subsequently becomes (completely) unemployed. So the unemployment benefit scheme was preceded by an earlier actual loss of working hours and was replaced by a part-time pension.
  • When the old-age pension arises from an adjacent (parallel) employment relationship with the employment relationship from which the person concerned became unemployed, it will not be set off against the unemployment benefit. This exception also remains.

The following two exceptions are as of May 1, 2018 new included in the regulations and also entered into force on that date.

  • Retirement pension, pre-pension or early retirement pension that has already been received prior to the last employment from which the person concerned became unemployed will not be deducted from the unemployment benefit. The reason for this is that there has been no reason for the person concerned to withdraw from the employment process.
  • Income related to work, including old-age pension, will no longer be set off against unemployment benefits if a person concerned receives several consecutive unemployment benefits and the first payment is already taken into account if the pension benefit has been taken into account. Also with regard to this exception, the creation of a pension benefit has not been a reason for the person concerned to withdraw (completely) from the employment process.

Incidentally, income from (pre) pension and early retirement schemes must always be reported to the UWV during unemployment benefits. After all, it is a task of the UWV to assess whether or not there should be a discount on unemployment benefit and to what extent.