When you leave your employer, a lot often changes. Not only does your income stop, but so does your participation in your employer's pension scheme. This naturally raises questions. Does your pension stop too? And what happens to the pension you've already built up? Below you can read how this works and what you need to watch out for.
Your pension accrual stops, but your pension remains.
When you leave your job, pension accrual through your employer stops. Your employer will no longer pay premiums, and you will not build up any new pension under that scheme. This does not mean your pension disappears. The pension you have accrued up to that point will remain with the pension fund or insurer.
According to the rules in the Netherlands, this accrued pension is preserved until the moment it is paid out. You can always view this via MyPensionOverview.nl, the platform where you can see how much pension you have built up and with which pension provider(s) it is held.
What happens to partner and survivor pensions
If you leave employment, with risk-based partner's pension cover, no partner's pension will be paid to your partner if you die. Risk-based means that your partner is only entitled to a payout upon your death if you are still employed. After leaving employment, this is often no longer insured because premium payments stop, and therefore so does the cover.
The partner's pension can also be insured on an accrual basis. In that case, a separate capital sum is saved alongside the capital for the old-age pension. This capital sum is retained.
In the new pension system, partner's pension is always insured on a risk basis. It is advisable to carefully check how this is arranged in your situation and what the consequences are for your partner or family.
We will explain what to look out for when your work situation changes and what questions you should ask yourself.
Taking your pension to a new job
If you start with a new employer that also has a pension scheme, you can choose to transfer your accrued pension. This is called value transfer. Your pension will then be merged with the pension from your new employer's pension provider.
Value transfer This can be useful as it helps you keep track of things and prevents your pension from becoming fragmented. However, a value transfer is not always the best option. If you apply for a value transfer, you will always receive a quote first. Have this assessed by the pension specialists at De Unie.
No new construction without an employer
After leaving employment, you can no longer accrue pension with your old pension scheme. Your pension will only continue to grow through any investment returns or indexation, depending on the rules of the pension fund or insurer.
If you still wish to continue building your pension, this can only be done through a new employer or by saving additionally yourself. This is something to take into account if you expect a period without work or if you are going to continue as a self-employed person.
What can you do yourself
If you are leaving your job or expect to do so soon, it is advisable to:
- to check my pension overview via MijnPensioenoverzicht.nl
- to check how the partner pension is arranged in your situation
- to see if value transfer is possible and desirable in a new job
- Get in touch with De Unie. That way, you’ll avoid any surprises in the long run.
Want to know more?
Do you have questions about your pension scheme or the consequences of the end of your employment for your pension? Please do not hesitate to contact us. Our Service Centre can be reached every working day from 8.30 AM to 5.00 PM via sc@unie.nl and 0345 851 963.
