Net pension scheme
This scheme is intended for employees who want to accrue pension on the part of the salary that exceeds the salary of € 137,800.- (2024). The survivor’s pension and the waiver of contributions in the event of disability for work that exceed this cap are also insured under this pension scheme by default.
How does the net pension scheme work?
The net pension scheme consists of 3 components:
- Accruing net pension capital for supplementary old-age pension
- A risk insurance for the survivor’s pension
- A risk insurance for a waiver of contributions in case of disability for work
An employer chooses between these components
The employee pays the pension contributions and the risk insurance premiums from their own net salary. They can choose a deposit between € 0.- up to the maximum defined contribution. If the amount is € 0.- the employee only participates for the risk insurances. We receive the contributions through the employer.
The net pension scheme is a voluntary pension scheme
This means that the employee is not obliged to accrue pension through this scheme. They can also participate in the risk insurances alone or not participate at all. The employer can choose to pay the contribution in whole or in part.
Advantages of a net pension scheme
The employee:
- does not pay capital gains tax on the accrued net pension capital;
- is exempt from inheritance tax on the net pension capital;
- need not undergo a medical examination for the risk insurances and
- as a fixed component, receives an insured survivor’s pension for their partner (subject to the condition that they are known to us) on the salary that exceeds € 137,800.- (2024) and their children are included under the policy by default.
Good to know
- On their pension date, the employee can only use the net accrued pension capital to purchase a fixed or variable pension benefit. It is not intended for any other purposes.
- The accrued pension capital is inaccessible until the retirement date and cannot be withdrawn before the pension date.
- The pension benefit they purchase is always a lifelong benefit. They can therefore not determine themselves how many years they will have their accrued pension paid out.
- It is a collective scheme, which means that some components are fixed. These are, for example, the funds we invest in and the insurer at which we have placed the risk insurances.
The investment options
There are 2 ways to accrue pension capital under this scheme:
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We invest the pension contribution according to the lifecycle principle
We invest in the Lifecycle by default. The employer does not have to do anything for this. The investments will be tailored to their age. Once they get closer to their retirement date, we further reduce the investment risk and later we will also gradually reduce the interest rate risk. Click here for more information on Lifecycle Investments.
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Your employee can invest themselves
In that case, they first determine their investment profile by completing a questionnaire on their personal pension portal. Then, they will determine their investment mix by making a selection from 40 investment funds in various investment categories. They can also find the funds on their pension portal. Click here for more information about Personal Investment.
The costs
We make a distinction between costs for the employer and costs for its employees.
Costs for the employer:
- One-off implementation fees. These depend on the number of employees participating in the scheme.
Costs for the employee:
- Administration fees: € 40 – € 60 per year.
- Pension contributions and risk insurance premiums.
- Investment Charges.
Contract term & notice period
The contract term is 1 to 5 years. It is possible to terminate the contract early. In that case, the notice period is 3 months.