Board member Edwin de Jong explains how compensation works at Pensioenfonds PGB.
You may have seen reports in the media about people missing out on compensation worth tens of thousands of euros when pensions move to the new system. Especially if they leave employment shortly before the transition. At Pensioenfonds PGB, compensation works differently for almost everyone than at many other pension funds. You do not receive the compensation as a single payment when moving to the new pension. There is no all-or-nothing moment. This means you do not suddenly miss out on a large compensation amount if you leave employment before the transition. I would like to explain how it works.
Under the current system, younger people often pay slightly more towards their pension than is necessary. Older people pay relatively less. This means younger people help pay for the pension of older people.
This worked well when people stayed in the same sector throughout their career, such as the graphics industry, government, healthcare, construction or the metal industry. Or even with the same employer for their whole career. At first, you paid a little more. Later, you benefited from that yourself.
Today, people change jobs more often. That is why we are moving to a system in which everyone pays the same percentage of their salary. This goes into their personal pension pot. When moving to the new pension, some people may be disadvantaged. This mainly affects people aged between 40 and 67. Employers and sectors have often agreed compensation for these groups.
Many pension funds have chosen to give compensation as a single payment at the time of the transition. And that is where the risk lies. You do not receive compensation if you are no longer accruing pension at the time of the transition.
Have you recently changed jobs or retired? If so, the difference could amount to thousands of euros.
At Pensioenfonds PGB, employers and sectors have made different arrangements. If you qualify for compensation, you will receive an extra contribution into your personal pension pot every month from the transition date, as long as you continue to work for your employer or in your sector and continue to accrue pension.
The compensation is an additional percentage on top of the money that you and your employer contribute towards your pension. In most cases, you receive this for 10 years.
Do you work in the Paint and Printing Ink Industry sector? Then it works differently and you will receive the compensation in 2027.
You will receive compensation if:
You can find the compensation arrangements in the transition plan for your sector or employer. Or ask your employer.
If you qualify for compensation, there is no single moment that determines everything. You do not receive the compensation as one large payment at the time of the transition. This means you do not suddenly miss out on a large compensation amount if you leave employment shortly before the transition. Because the compensation is spread over several years, it better reflects your personal situation. If your work or income changes, the compensation changes as well. If you stop working, the compensation also stops. That makes sense, because you are no longer accruing pension.
Do you have a question about compensation in specific situations? For example, during leave or if you continue working after your State Pension age has started? View the frequently asked questions about compensation or contact customer service. We are happy to help.