No Longer Paying In
If you change employers, you can choose to transfer your accrued pension to the pension provider of your new employer. This is called value transfer. An advantage of value transfer is that you keep your total pension together. But the comparison of the pension plans of your old and new employer mainly determines if value transfer is favorable for you or not. This is often not easy and, therefore, it is recommendable to call in the assistance of an independent financial adviser.
Do you wish to transfer your pension from APS to another pension provider? Then, you have to apply for this within two years after your dismissal. Value transfer is only possible from or to a pension provider as described in the Pensioenlandsverordening overheidsdienaren (national ordinance pension of civil servants).
Which information will I still receive from APS?
If you are no longer working with an employer affiliated with APS but still have pension entitlements with APS, your will receive a Pension overview from APS once every five years. This states how much pension you have accrued with APS. Please check the data in this overview carefully and if something is wrong, please contact us.
When you have retired later on you will, as of that moment, receive an annual pension overview from APS stating the pension that APS has paid to you. You can also use this overview for your tax declaration. You can remain updated on the developments at APS via our website.
Will my pension be increased?
As of 1 July 2020, the system of automatic indexation, which was linked the indexation of the civil servants’ salaries, will be replaced by indexation that is linked to the increase of the cost of living and to the pension fund cover ratio. Indexation is only granted if the financial position of APS is strong enough. The pension fund cover ratio needs to be higher than 105%. If indexation can be granted, both the pensions and the future pension rights will be increased.
Duurtetoeslag will cease to exist
The ‘duurtetoeslag’ (cost of living adjustment) which applied to employees in the old pension scheme (prior to 1998) will cease to exist. Accrued rights will be upheld. However, there will be no further accrual. In addition, the accrued rights will not be increased by 10% due to the increase of the retirement age, nor will they be reduced if a participant opts for early retirement. Indexation of the ‘duurtetoeslag’ will be the same as the conditional indexation of the pension.
The yardstick for measuring the financial position of APS is the cover ratio. It is the ratio of the assets and liabilities of the pension fund expressed in a percentage. If the cover ratio drops below 100%, APS has to draw up a recovery plan to bring the ratio back to at least 100% within a period of 5 years. If the recovery does not materialize within these 5 years, the employers and the participants (employees, former employees and pensioners) have to make a contribution to the fund that will restore the cover ratio to 100%.
The employer will have to provide a capital injection, while the participants will see their pension and future pension rights reduced. The progress of the recovery plan will be monitored each year.
What has been arranged for my surviving family members?
If you still have pension entitlements with APS as a former participant, there is also a widow(er)’s pension for your spouse and an orphan’s pension for your possible under-age children.
The widow(er)’s pension is a benefit for your husband/wife after your death. The marriage must be concluded before you reached the age of 65. If you cohabitated without being married, there is no widow(er)’s pension for your partner. Your spouse receives the widow(er)’s pension from the moment of your death until his or her death.
When you die when you are no longer working with the government, your spouse will receive a widow(er)’s pension that is 70% of the senior’s pension that you have accrued with APS. This percentage can be different if you were married before.
The orphan’s pension is a benefit for your children if you pass away. The orphan’s pension is paid to children up to the age of 18 or 27 if they are still studying or are unable to provide for themselves due to illness or disability.