Definitions

ANW survivor benefit shortfall

An ANW survivor benefit shortfall is an ANW gap, a deficit. If you or your partner receive no or a low ANW survivor benefit from the government after passing away, an ANW survivor benefit shortfall may arise.

Bonds

These are loans issued by companies, institutions or governments. When you purchase a bond, you are lending money.

Cap

We also refer to this the pensionable salary. This is the total annual gross salary including holiday pay and any other allowances. The pension is accrued on this salary. There is a cap that changes annually. For 2024 it is € 137,800.-. If the salary is higher the participant will not accrue pension on the part above the amount of € 137,800.-

Commutation

Are you no longer participating in a pension scheme? For example, because you have another job. And have you accrued a small pension? Then the pension administrator of your previous pension fund may commute the small pension under certain conditions. One such condition is that the annual pension benefit may not exceed € 592.51 (2024). You will then receive this amount. This amount will be adjusted slightly each year.

Conversion

As a participant of a pension scheme, you accrue old-age pension. If your marriage or registered partnership ends, this will affect your old-age pension. You can then choose to convert part of your old-age pension into your ex-partner's own old-age pension. This part then belongs to your ex-partner. This is known as conversion. You will make arrangements in this respect with your ex-partner.

Coverage ratio

This is an indicator for a pension fund's financial situation. The coverage ratio indicates whether a pension fund can pay the pensions now and in the future. It is calculated by dividing all assets of the pension fund by the pension liabilities. Pension liabilities are all pension entitlements of the participants.

Deductible

This is the part of your salary on which you do not accrue pension.

Defined Contribution Scheme

The employer pays a contribution to the pension insurer each year. The amount of the available contribution depends on your salary and age. Under the defined contribution scheme, the amount and form of the pension are not fixed in advance.

Defined Contribution (DC scheme)

We refer to this pension scheme as a 'defined contribution' scheme. The amount of the pension benefit is not fixed. This amount depends on how much contribution has been paid. In addition, investment returns also determine the level of the pension benefit. We will not review the amount of your pension benefit until the moment you retire.

Deposit Guarantee Scheme

It offers account holders at a bank a certain degree of protection. If a bank runs into financial problems, you will get some of your money back. This is provided for by law.

Disability for Work

Someone is disabled for work if they can no longer perform their work in full or in part because they are ill, for example. Check the Wijzer in geldzaken website for 7 tips on disability for work. You can find more information on the central government website.

Equalisation

If your marriage or registered partnership ends, your ex-partner will be entitled to half of the old-age pension. This is the old-age pension that you accrued during your marriage or registered partnership. This has been arranged in the Equalisation of Pension Rights in the Event of a Divorce Act. You can make other arrangements in this respect with your ex-partner.

Exchange of pension

When you retire, you can choose to exchange old-age pension for partner's pension for your partner. Your own old-age pension will then be lower, and the partner's pension higher. The reverse is also possible: exchanging partner's pension for more old-age pension.

General Old Age Pensions Act

General Old Age Pensions Act.
Under this act, you will receive a basic old-age pension from the government You can find more information on the central government website. For example, information about the amount of this benefit and when you will receive it. You can also calculate your state pension age there.

Government Bonds

This is a loan, issued by a government, a State. See also the explanation under 'bonds'.

High/low pension

When you retire, you can choose to have a higher pension benefit first and a lower pension benefit later. Or the other way around.

Old-Age Pension

When you retire, you will be paid a pension for life: the old-age pension.

Orphan’s Pension

Your child or children will receive this pension in the event that you pass away. Depending on your pension scheme, your children will receive orphan's pensions until they are 18, 21, 25 or 27 years old. This also applies to stepchildren and foster children.

Part-time Pension

You will retire partially. You will also continue to work part-time, but less hours. For the days/hours that you no longer work, you will receive a benefit from your part-time pension. Part-time pension is an option you can often choose in pension schemes. It is not a right.

Partner’s Pension

Your partner may receive a partner's pension in the event that you pass away. This is also known as survivor's pension.

Pensionable Salary

We also refer to this as the cap. This is the total annual gross salary including holiday pay and any other allowances. The pension is accrued on this salary. There is a cap that changes annually. In 2024, this is € 137,800.- Is the salary higher? The participant will not accrue pension on the part above the amount of € 137,800.-.

Pension capital

This is the amount you have accrued in pension.

Personal Records Database (Basisregistratie Personen)

This registration contains personal data of residents of the Netherlands and persons who have lived in the Netherlands. Municipalities keep personal data of residents of the Netherlands in the Personal Records Database. When someone gets married, has a child, moves or separates, the Municipality processes this in the Personal Records Database. You can find more information on the central government website.

Return

This is the result of investments. If the return is positive, then the investments will be worth more. If it is negative, they will be worth less.

Share

A form of investment where capital is issued to a company. The share price on the stock exchange determines the value of a share.

Special Partner’s Pension

If you and your partner separate, your ex-partner will receive special partner's pension. This is part of the partner's pension. This is the part accrued up to the date your marriage or registered partnership ended. Your ex-partner will receive this pension in the event that you pass away.

Standard Retirement Date

The pension scheme takes into account a standard retirement date. This is the retirement age at which you can retire within your pension scheme.

Surviving Dependents Act

Surviving Dependents Act (Algemene Nabestaandenwet, or ANW).
Your partner may receive an ANW survivor benefit from the government in the event that you pass away. Or you may receive this benefit in the event your partner passes away.

You can find more information on the central government website.

On the website of the Social Insurance Bank, you can check whether you are entitled to an ANW survivor benefit.

Top-Up Scheme

This is a supplementary pension scheme for when your salary exceeds the salary limit in the basic pension scheme. Almost every pension scheme has a maximum salary over which you accrue pension. You do not accrue pension on the part of your salary that exceeds this maximum amount. With the top-up scheme, you can still accrue pension on the part of your salary that exceeds this salary threshold.

Uniform Pension Statement (UPO)

Everyone who accrues pension receives a uniform pension statement, the UPO, every year. This is a statement with details regarding your pension.

Value transfer

If you have accrued a pension and change employers you can transfer your accrued net pension to your new pension administrator.

WIA

The Dutch Work and Income (Capacity for Work) Act (Wet werk en inkomen naar arbeidsvermogen, or WIA). This is an insurance for workers. The law provides for a benefit if you are unable to work or have to work less due to illness. You can read more about this on the website of the Employee Insurance Agency UWV.