Frequently Asked Questions:
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Anw / Partner’s pension in the event of death
Does someone have to report my death?
If you live in the Netherlands and are married or are in a registered partnership, then your surviving dependents do not need to report your death to the pension fund. When someone dies the Persons Database (BRP, Basis Registratie Personen) automatically notifies the pension fund.
If you live in the Netherlands and are married or are in a registered partnership, then your surviving dependents must report your death to the pension fund. They can do this by sending a copy of the death certificate to PDN.
If you live in or outside of the Netherlands and have a notarial cohabitation contract, your partner must prove that they were still living with you at the time of your death. They can do this by sending PDN an extract from the population register that shows that you were living together.
What is Anw?
In some cases, your partner and children may be entitled to benefits under the General Dependents' Act (Anw benefit). Anw stands for Algemene nabestaandenwet, or ‘General Surviving Dependents’ Act. The Anw surviving dependents' benefit is a state benefit. The Social Insurance Bank (Sociale Verzekeringsbank, SVB) administers the Anw on behalf of the government.
What will my partner and children receive in the event of my death?
As a member of PDN, you accrue pension not only for yourself but also for your partner (partner's pension) and your children (orphans' pension). These pensions start immediately in the event of your death. This is the case even if you had not reached the age of retirement. The Uniform Pension Statement (UPS) that you receive each year shows what your children and partner will receive in the event of your death.
Following a divorce or previous divorces, the partner's pension for the new partner or partners may be lower. The ‘Partner's and orphan's pension‘ brochure sets out the various options in the event of death (death before retirement, after retirement, the types of partner and orphans' pension, and so on).
For more information, visit our website at 'What happens if.... Death and pension'.
When does the partner's/orphans' pension start if I die?
The partner's/orphan's pension starts on the first day of the month following your death.
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Buy an annuity
What is Factor A?
Factor A indicates how much your pension has grown in the basic pension scheme in a certain year. Factor A is stated in the Uniform Pension Statement (UPS) that you receive annually from the pension fund. You need your factor A to calculate how much you can supplement your pension with gross tax-free annuities.
What is annual margin?
The annual margin indicates the amount in contributions that have been paid into the net pension scheme on your behalf in a certain year. The annual margin is stated in the Uniform Pension Statement (UPS) that you receive annually from the pension fund. The annual margin will be stated on the UPS for the first time in 2021. You need the annual margin to calculate how much you can supplement your pension with net tax-free annuities.
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Change of address
I'm moving house soon. Should I inform the pension fund of this?
If you move within the Netherlands, there is no need to inform the pension fund. PDN will automatically receive your new address details from the Personal Records Database. It is therefore important that you inform your local authority about the move. If you are moving to or within a foreign country, or from a foreign country to the Netherlands, you must provide PDN with your new address details in writing.
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Deductions
My Uniform Pension Statement (UPS) only contains gross amounts. Where can I find the net amounts?
The remaining net amount depends on many factors. It is not only the usual deductions such as payroll tax and health insurance contributions that play a role here, but also aspects such as a mortgage or other income. If you have not yet retired, you can use the PDN pension planner (on the PDN website under ‘My PDN Pension') to gain an impression of your net pension benefit.
What about the tax on my pension?
Wage tax is deducted from the pension benefit. The payroll tax is a combination of the national insurance contributions and income tax. The income-related contribution under the Dutch Health Insurance Act is also deducted from your benefit. You can have a wage tax credit applied to the payroll tax. The wage tax credit is the collective term for the discounts on the taxes and contributions that you pay. As a rule, all employees or beneficiaries who live in the Netherlands are entitled to the wage tax credit. If you do not live in the Netherlands, tax credits take a smaller amount into account.
If you have another income in addition to your pension benefit, you can choose which income the wage tax credit is applied to. The Social Insurance Bank (SVB) applies the wage tax credit to your state pension as standard. You can change this at any time by sending an "Opgaaf gegevens voor de loonheffingen" (payroll tax declaration) to the pension fund or the SVB. For more information, please see svb.nl. Because of the progressive nature of the Dutch tax system, it is possible that you have not paid enough payroll tax in a given year. In that case you will receive an additional income tax assessment. By opting to let PDN withhold more tax and social insurance contributions on a monthly basis, you can prevent an additional income tax assessment. PDN cannot calculate the adjustment you must make to your tax and social insurance contributions for this purpose. You must personally, or with the assistance of a financial advisor, calculate the amount of the adjustment and specify this to PDN by letter.
For more information, visit our website at '
Pension alternatives.... Retiring on a pension'.
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Disability
What happens if I become disabled?
If you have been ill for more than two years (legally 104 weeks) and have been declared at least 35% disabled, you are eligible for a statutory benefit in the event of disability. You receive this benefit from the Dutch Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) on the government's behalf pursuant to the WIA (Work and Income [Capacity for Work] Act). If you are fully disabled, which means 80% or more, the UWV will grant you a WIA benefit amounting to a maximum of 75% of your last-earned wage before you became disabled. This is subject to a statutory maximum. The statutory benefit never exceeds 75% of the maximum income assessable to national insurance (as at January 1, 2024: €71,628). PDN offers you supplemental disability insurance.
For more information, visit our website at 'What happens if.... Disability'.
What happens when I leave the company?
If you leave the company as a result of your disability, your employer will inform PDN of this.
From the moment you leave the company, you continue to fully or partially accrue your pension with PDN in the event of becoming fully or partially disabled. Depending on the degree of disability, you pay part of the contribution or no contribution at all.
If your pensionable income on the date of leaving employment is higher than the maximum income assessable to national insurance, you do not receive WIA benefit over that additional pensionable income. At PDN you are in this case eligible for a supplement in the form of a statutory disability pension. The disability pension is only paid out if you are fully disabled (80% or more). The disability pension is 70% of the pensionable income above the maximum income assessable to national insurance (from January 1, 2024: €71,628).
For more information, visit our website at 'What happens if.... Disability'.
What should I do if my disability decreases or increases?
Inform PDN if your disability percentage increases or decreases. The pension accrual is based on the degree of your disability on the date of leaving employment. If you subsequently become less (or more) disabled, you may accrue less (or more) pension. Your disability pension stops if your disability percentage falls below 80%. It is also possible that you receive a disability pension because your disability rises to 80% or more.
For more information, visit our website at 'What happens if.... Disability'.
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Divorce or separation
I'm getting a divorce, I'm divorced, or my cohabitation contract is being terminated. What are the implications for my retirement pension?
Separation usually has serious implications for your retirement pension. In the event of a divorce, the pension rights accrued during the marriage period must be divided between you and your partner. This also applies to the PPS balance and the net pension capital. This is governed by the Equalization of Pension Rights in the Event of a Divorce Act (WVPS). The retirement pension accrued during the marriage or cohabitation period is shared. Under the standard division, 50% of the retirement pension goes to the member and 50% to the former partner. Your former partner's benefit starts at the same time as yours. On termination of a cohabitation contract, your former partner is only entitled to a part of the retirement pension if this is laid down in the contract. A different division of the retirement pension is also possible, but this must be stated in the prenuptial agreement or in a separation or divorce agreement. As well as the retirement pension, there is also a partner's pension. Your former partner is entitled to the partner's pension that you have accrued from the date of commencement of membership until the date of separation. We refer to this as special partner's pension. In the event of your death, we pay out this special partner's pension to your former partner.
For more information, visit our website at 'What happens if.... Divorce and pension'.
What is the definition of 'partner'?
- The person you are married to, or
- The person who is registered as your partner at the civil registry, or
- The person you have a notarial cohabitation with and who shares your address. A further condition is that the cohabitation contract has been reported to and recognized by PDN.
Those you enter into one of these partnerships with after your retirement are not eligible for a partner's pension.
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Early retirement
I want to retire before my state retirement age.
If you retire (fully or partially) more than ten years before your state retirement age, you must end all or part of your paid activities. For that purpose you complete the ‘no paid work’ declaration of intent. This declaration is automatically sent with the application for retirement pension, if applicable. If you start your early retirement at a later date, you do not have to stop working. If you want the retirement pension to start before the state age of retirement, you must apply for this in person.
For more information, visit our website at 'Pension alternatives.... Retiring on a pension'.
I'd like to take early retirement. At what age can I retire?
The soonest you can retire is when you reach the age of 55. The pension benefit is lower because your pension has to be paid out for a longer period of time and you accrue less pension if you retire early.
What are the implications of early retirement for my retirement pension?
If you decide to stop working before your retirement age and then retires, your pension benefit will be lower. This is because your accrued entitlements are spread over a number of years. You will also accrue fewer years of pension.
You can start your retirement pension between the age of 55 and your state retirement age. If necessary, you can also have the pension start after the state pension age, no later than 5 years after the state pension age. You can also use the PPS balance for a temporary PPS payment prior to your retirement pension.
For more information, visit our website at 'Pension alternatives.... PPS scheme'.
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Indexation
Is my pension increased annually?
The pension fund's ambition is to increase pensions annually and to allow them to grow in line with price or salary increases. We refer to this increase as ‘indexation.’ Whether supplements can actually be granted depends on the fund's financial position. Indexation is therefore not an entitlement. The fund does not reserve any money for indexation and no contribution is paid for it. Read more about this in the ‘Indexation'
brochure.
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Investing
Would I be better off if I invest my pension contributions myself?
We cannot imagine that would be the case. During certain periods, investing as an individual may result in higher returns compared with membership of a pension fund through your pension contributions. However, if investment as an individual also means that all risks of investment are directly for the individual’s account. You must be well aware of this. Among other things, PDN makes use of advantages of scale in the case of investment (low costs). This means that we can spread the risks over all members. This risk is also spread over longer periods of time. Over the past 30 years, PDN achieved an average annual return of 7.5%.
Based on the pension contributions and returns, PDN is responsible for the pension contributions and pension payments of all members. PDN provides you with disability insurance. You partner and children are also insured in the event of your death.
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Marriage and cohabitation
I am cohabiting and have a cohabitation agreement, do I need to report this?
Yes, if you are cohabiting and have documented this in a cohabitation agreement, then you are required to take action. You must register your partner with PDN. You can do this with the completed and signed '
Form registering the partner with whom you are cohabiting'. You must send this form together with the required documents (copies of your proof of identity, a copy of the cohabitation agreement, and your partner’s extract from the Persons Database).
For more information (and the documents to be sent), please read the ‘Marriage and cohabitation' brochure.
I am going to get married or will enter into a registered partnership, do I need to report this?
No, PDN will be informed of this via the Dutch government's Personal Records Database. You therefore do not need to report this to us. If you live abroad, you must report getting married or entering into a registered partnership. You are then required to send a copy of the marriage certificate to PDN.
For more information (and the documents to be sent), please read the ‘Marriage and cohabitation' brochure.
What is the definition of ‘partner’?
- The person you are married to, or
- The person who is registered as your partner at the civil registry, or
- The person you have a notarial cohabitation with and who shares your address. A further condition is that the cohabitation contract has been reported to and recognized by PDN.
Those you enter into one of these partnerships with after your retirement are not eligible for a partner's pension.
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Net Pension Scheme
How do I leave or rejoin the NPS?
If I decide not to join the Net Pension Scheme (NPS), is the employer's contribution the same as the contribution if I do?
If you decide not to become a member you still receive the employer’s contribution. This means your net income will be higher in exchange for less pension later.
Is it possible to transfer the capital accrued in the Net Pension Scheme (NPS) to another pension fund if I leave employment?
It is possible to transfer the saved capital if you are also a member of a Net Pension Scheme with the new pension fund.
Is there a tax benefit if I join the Net Pension Scheme (NPS)?
The net pension that you purchase with the pension capital is not taxed when you draw your pension (pension contribution taxed, pension untaxed).
Nor is the pension capital taxed in Box 3.
What are the pros and cons compared to the other options, such as transferring to an insurance company?
Costs:
- The employer rather than the member pays the administration fees of the Net Pension Scheme (NPS).
- Low investment costs compared to an insurer.
Membership of the NPS involves full statutory cover for the risk of disability and (if insured) for the risk of death. If you decide to join the NPS at PDN, all your pension entitlements are administered by the same pension fund. This gives you a clearer overview of your pension entitlements. Unlike an insurer, the pension fund is allowed to use different scales, which means that the scope of the contribution is more than with an insurer. The pension capital that you form with the net contributions is not taxed in Box 3.An advantage of transferring the contribution to an insurer is that you can indicate the group of people entitled to benefits in the event of death. In this case, PDN has a statutory group of beneficiaries who are eligible for a benefit in the event of death. This group of beneficiaries consists of the partner and any children.
When do I join the Net Pension Scheme?
To offer a good pension if you earn more than €137,800 (limit amount 2024), there is a Net Pension Scheme in addition to the collective pension scheme. This allows you to accrue a pension on your pensionable salary above the limit.
If your pensionable salary is or becomes higher than the limit amount, you automatically join in the NPS (unless you have waived membership in writing).
If you work part-time, the full-time pensionable salary is taken into account when assessing whether that salary is above or below the threshold.
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Options
Early retirement
You can retire from the age of 55. It is possible that you were a member of the DSM early retirement scheme before January 1, 2006. In that case, the PPS balance you have saved is reserved separately. Interest is credited to this balance. Your PPS balance may also have been converted into extra pension entitlements in October 2016.What you can do with your PPS balance strongly depends on your age and your state retirement age.
For more information, visit our website at 'Pension alternatives.... PPS-scheme'.
Exchange of partner's pension for extra retirement pension
Do you not have a partner, or is your partner financially independent? In that case, you can choose not to receive a partner's pension when you retire. The accrued partner's pension, or part of it, can be used for a higher retirement pension. You do however need your partner's consent to exchange the partner's pension because in that case your partner will receive no, or less, benefit after your death. This is done automatically for participants who do not have a partner when they retire.
For more information, visit our website at ‘Pension alternatives… Exchange Partner's Pension’.
Varying the amount of the pension benefit
You can vary the amount of your retirement pension. If you do not yet receive a state pension when you retire, or if you still have financial obligations (e.g. a mortgage), you can opt for a ‘high/low benefit’. In that case, the period of the benefit is split into two, as it were. For example, the payment in the first period is higher than the payment in the second. The other way around is also possible. The amount of these benefits is based on the accrued pension at the time you retire.
For more information, visit our website at ‘Pension alternatives… Varying the payment'.
You can also consult the pension planner on the website. This allows you to use your own pension data to consider the options for taking early retirement.
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Prepension scheme (PPS scheme)
What can I do with my PPS balance?
What happens to my accrued PPS balance if I change employer before I reach the age at which I want to retire?
If you leave employment before your retirement date for reasons other than disability or death and have not transferred your pension to your new employer, you retain the entitlement to the accrued PPS balance that you had saved up until that date. You will receive an overview of the balance as at the date of termination of employment.
What has the yield been in recent years and can the PPS interest also be negative?
The PPS balance is subject to interest (positive or negative). The amount of interest paid monthly on the PPS balance depends on the return PDN makes on its investment of the PPS balance. The monthly return (positive or negative) is calculated according to the investment result for the previous month on the first day of each month. If that return is positive, interest is credited. If the return is negative, interest is debited. The returns are published monthly on the website. More information about this is given in the 'Indexation' brochure
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Retirement / state pension (AOW)
How is my pension accrued at PDN?
Your pension scheme is a conditional average salary scheme. Under an average salary scheme, you receive a benefit based on the average salary you have earned over the years. From your chosen pension age onwards, you receive (in addition to any AOW benefit from the government) pension that you have accrued through your employer or employers. The PDN pension scheme is a CDC scheme, or Collective Defined Contribution.
This means that your employer pays a monthly contribution for you to PDN. The employee also pays part of the contribution. PDN is responsible for ensuring that employees, former employees and those entitled to benefits receive the pension to which they are entitled. The pension rights you accrue under this system are conditional. This means that you can claim these rights if the financial position of PDN allows.
How much contribution do I pay?
Your employer pays PDN a pension contribution of 24.17% of the pensionable salary up to the maximum tax limit. You pay part of that as an employee. The amount of the employee’s pension contribution is laid down in the Collective Labor Agreement (CLA). Your contribution is withheld up to the threshold from your monthly pensionable salary minus franchise and is exempt from payroll tax.
I want to retire. What do I need to do?
You can start the pension at your state retirement age, but also before or after your state retirement age. The soonest you can receive a pension from PDN is from your 55th birthday. A few months before your state age of retirement, you will automatically receive an application letter from PDN. Forms to indicate your choices will be enclosed with this letter.
If you want the retirement pension to start before the state age of retirement, you must send an application for this to PDN. In that case, you must send the ‘Application form for retirement pension‘ to PDN no later than three months before the desired pension start date. You can also download this form from the PDN website under ‘downloads’. PDN will send you a letter of application.
If you want the pension to start after your state retirement age (no later than five years after your state pension age), you must notify us in writing.
You can use the ‘Application form for PPS benefit’ to apply for a PPS benefit.
What are the implications of early retirement for my retirement pension?
If you decide to stop working before your retirement age and then retires, your pension benefit will be lower. This is because your accrued entitlements are spread over a number of years. You will also accrue fewer years of pension.
You can start your retirement pension between the age of 55 and your state retirement age. If necessary, you can also have the pension start after the state pension age, no later than 5 years after the state pension age.
You can also use the PPS balance for a temporary PPS payment prior to your retirement pension.
For more information, visit our website at 'Pension alternatives.... PPS scheme'.
What is AOW?
Your state retirement age depends on your year of birth.
More information about the AOW is given at svb.nl. Here you can find your state retirement age and the payment dates of your state pension. You will found your accrued and attainable statement pension on the website ‘mijnpensioenoverzicht.nl‘.
When will I receive an overview of my accrued pension and pre-pension entitlements?
By October 1, of each year you will receive a Uniform Pension Statement (UPS) from PDN at your home address or digitally (via 'My PDN Pension'). This contains all the information relating to your pension entitlements. This statement also shows how much pension you can attain, based on your employment contract and pension income as at the date of the statement.
Who can I contact with questions about my pension?
If you have any questions about your pension, please contact our Pension Desk:
phone: +31 (0)88 - 3601555 or email: info.PDN@dsm.com.
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Unpaid leave
What happens to my pension accrual if I take unpaid leave?
If you take a period of unpaid leave, you will not accrue any pension during that period. If you die during the unpaid leave period, a partner's pension is available for your partner and children.
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Value transfer
How do I find a former pension provider?
The government website ‘mijnpensioenoverzicht.nl‘ provides an overview of all pensions that a person has accrued over time with different pension funds. You can only access the site with a DigiD code. That is your state login code. If you do not have a DigiD code, you can apply for one via the website ‘digid.nl‘. If the website ‘mijnpensioenoverzicht.nl‘ cannot answer your questions about your former pension administrator, there are some more possibilities. See the following websites:
If you have proof of the entitlements, you can contact the information desk of 'De Nederlandsche Bank (DNB)' for names, addresses and telephone numbers of existing pension funds and/or insurance companies. The information desk is open from Monday to Friday between 9:00 AM and 5:00 PM on telephone number +31 (0)800-0201068 (free of charge) or by email: info@dnb.nl. You can also go to the DNB website dnb.nl.
If you do not have proof or a statement, you can contact your former employer or former colleagues if the employer cannot be found. You can also ask the trade unions if they know the company. For certain sectors, membership of a company pension fund is compulsory, which means that can report directly to that fund. For a pension facility that has been placed with an insurance company, you can contact the ‘verbond van verzekeraars‘ (Dutch Association of Insurers).
I am leaving employment soon. Can I transfer my accrued pension or pre-pension entitlements to the pension administrator of my new employer?
Yes. You must submit the request for value transfer to the pension administrator of your new employer. The pension administrator of your new employer will then ask PDN for a statement of your accrued pension and pre-pension entitlements. Your new pension administrator will then provide you with a statement for purchase in the pension scheme of your new employer. You can decide on this basis whether you want to arrange the value transfer.
I recently joined DSM. How can I have the pension I accrued with my previous pension fund transferred to PDN?