What you need to know about compensation

The new pension scheme no longer includes an “average contribution”. An “average contribution” means that everyone who earns the same amount contributes the same amount to their pension, regardless of their age. With this contribution, a young person accrues the same amount of pension as someone who is older.

The new pension scheme is different. Your contributions no longer accrue pension (a monthly benefit), but capital for your pension. From the moment you start drawing your pension, that capital will provide you with a monthly amount for as long as you live. You will not know in advance how much capital you will have at that point. The amount depends, among other things, on the return on the investments.

The younger you are, the longer we can invest your contributions. And the more your pension is expected to yield. On average, there are more good than bad stock market years. Are you already older? Then a euro contribution is expected to yield less than in the current pension scheme. We can invest your contributions for someone who is older for a shorter period of time. Are you approaching retirement? Then it doesn't really matter. You will already have accrued most of your pension in the current pension scheme. The value of that pension will be transferred to the new pension scheme. The new system is particularly disadvantageous if you are between 40 and 60 years of age

Anyone who suffers a disadvantage will receive compensation if possible.

Social partners have agreed on a compensation scheme. Anyone who is accruing pension with us on 31 December 2026 and 1 January 2027 (including those who are incapacitated for work and accruing pension without paying contributions) and who is expected to suffer a disadvantage as a result of the abolition of the average system will receive compensation if this is financially feasible.

Compensation means extra money for your pension. We add the compensation to the pension capital with which you start in the new pension scheme. The more money there is to distribute, the more money is available for compensation.

The amount of compensation depends on the following:

• Your salary on 31. December 2026
• your age
• the financial situation of the pension fund at the time of transfer

Please note:

• Will you be leaving the company or retiring before 1 January 2027? Then you will not receive any compensation.

The compensation is intended to offset future disadvantages. Therefore, people who are no longer accruing pension on 1 January 2027 will not receive any compensation. After all, they will not be disadvantaged by the abolition of the average system. In other words, no money will be paid into this group. That is why the abolition of the system will not affect their pension.

Are you joining an employer with an “old” pension scheme that is still going to change? If so, you may be entitled to compensation. Take a good look at your new employer's pension scheme when you change jobs. That way, you will never be faced with any surprises.

• Are you taking unpaid leave?

If you are on unpaid leave on 31 December, you will not receive any compensation. Your salary on that date will form the basis for the amount of compensation.

• Working less means lower compensation

We calculate the compensation based on your salary on 31 December. So, if you start working fewer hours just before the transfer, this will also mean a lower compensation.

• Have you recently joined the company and are you considering transferring your pension?

Then this will not affect the compensation. We do not calculate the compensation based on the capital you have with us, but based on your expected contributions and the difference in accrual between the current/old and new pension schemes.

We would like to point out that it may be advantageous to transfer your pension before we switch. When we switch, we will distribute the total fund assets among everyone with a pension at Pensioenfonds Witteveen+Bos. Part of those assets will go towards compensation, and another part will go towards a new reserve. The remainder will be distributed proportionally among everyone with a pension (or capital) with the fund. Is that capital greater because you transferred the pension you had previously accrued? Then you will also receive a larger share when we distribute the fund assets. Whether this is advantageous for you depends on the coverage ratio and the amount of fund assets at the time of the transfer, as well as the agreements on the distribution of fund assets at both pension funds. In other words, you may receive more capital from your old pension fund at the time of the transfer if that fund is in a more favourable position.

During the months surrounding a transition, you cannot transfer your pension from one pension fund to another. You can do so well in advance and again several months afterwards.

View some sample calculations of the compensation

The compensation in the first calculation

Prior to the transfer, we will make an initial estimate of your pension under the new pension scheme. This initial estimate will be based on your financial situation on a date prior to the transition. If you are eligible for compensation based on that situation, this will be shown in the initial calculation.

You cannot derive any rights from the initial calculation. The situation at the time we actually switch will determine whether or not you will receive compensation.

The compensation in the second calculation, after the switch

After we have switched, we will make a new calculation. We will then know for certain who will receive compensation and how much this compensation will be. If you are entitled to compensation, the second calculation will show you how much money you have received.

These are the agreements regarding the distribution of the fund's assets and compensation.

If the coverage ratio at the time of transfer is lower than 110%:

This coverage ratio is too low to ensure a balanced transition for everyone in accordance with the agreements made. Certain groups are disproportionately disadvantaged by the distribution of the fund's assets.

Social partners review the agreements made.

If the coverage ratio is between 110% and 150%: 50% of the required compensation is granted. If there is still money left over, half of the money is used for compensation and the other half to supplement individual capital, with the proviso that compensation never exceeds what is necessary.

Is the coverage ratio 150% or higher? This coverage ratio is too high to ensure a balanced transition for everyone under the agreements made. Certain groups benefit disproportionately from the distribution of the fund's assets.

Social partners review the agreements made.