Pension 123

Checked on 23 March 2020

Pension 123

You accrue pension in the flex pension scheme of Philips Pensioenfonds. In this Pension 1-2-3 you can find out what you receive and what you do not receive in our pension scheme. Pension 1-2-3 does not contain any personal information about your pension. Your personal information can be found at www.philipspensioenfonds.nl/mijnppf, at www.mijnpensioenoverzicht.nl and on your annual Uniform Pension Overview.

We invest your pension premium in a socially responsible manner. You can read more about this on our website.

What can you find in layers 1, 2 and 3?

  • Layer 1: this layer gives you in brief the most important information about the flex pension.
  • Layer 2: by clicking +, you will find more information about all the subjects dealt with in the first.
  • Layer 3: you will find documents containing detailed information about the pension scheme and the Fund.

 

Pension 123

Here you can print a document of the first layer of Pension 123.

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What do you receive under our pension scheme?

  • When you retire, you receive a retirement pension.


    Retirement pension
    Via Philips or Signify you participate in the flex pension of Philips Pensioenfonds and you accrue a retirement pension, which you receive at the age of 68. Your retirement pension supplements the state pension (AOW), which you receive from the government when you reach the AOW retirement age.

    How much pension you receive from Philips Pensioenfonds depends mainly on the level of the salary that you earned, the content of the pension plan in which you participated and the number of years that you participated. The retirement pension is paid monthly from the age of 68 for as long as you live. The level of the retirement pension is stated on your Uniform Pension Overview and at www.mijnpensioenoverzicht.nl (in Dutch)

    The pension plan in which you participate is a defined-benefit plan. Each year you accrue pension on part of the gross salary that you earned in that year. You do not accrue pension on your whole gross salary, because your pension administrator takes into account the AOW, which you receive from the government when you reach the AOW retirement age. The portion of your salary on which you do not accrue pension benefits is called the ‘franchise’. Each year you accrue 1.85% retirement pension on the gross salary minus the franchise. The accrual rate of 1.85% can even be lower under certain circumstances.

    Important!
    The flex pension provides for pension accrual on an income up to € 110,111. If you earn more than € 110,111, you can save for extra pension via the voluntary net pension plan with ABN AMRO Pensions. To find out more about this, contact ABN AMRO Pensions.

    Example
    Let us suppose that you earn € 25,000 per year. The franchise is € 15,000. In that year you accrue 1.85% retirement pension on the pension base of € 10,000. That is € 185 in that year. The retirement pension that you receive annually on retirement is the sum of all the years plus any increase (indexation).

     

    Documents
    Actuele pensioenreglementen

    16 May 2019

    2017_Jaarverslag Philips Pensioenfonds

    05 June 2018
    In dit jaarverslag legt het Bestuur van Philips Pensioenfonds verantwoording af over het verslagjaar 2017.

  • In the event of your death, your partner receives a survivor’s pension and your children get an orphan’s pension.


    Survivor’s and orphan’s pension
    As well as your retirement pension, you accrue a survivor’s pension and an orphan’s pension. In the event of your death your partner will be entitled to a survivor’s pension and your children below the age of 21 will be entitled to an orphan’s pension.

    You accrue survivor’s pension at 70% of the retirement pension that you build up. This means that every year you will accrue 70% of your retirement pension for your partner. The value of the survivor’s pension is affected by a number of different factors, for example whether you are actively accruing pension, whether you were married previously and what personal pension preferences you have selected.

    You accrue orphan’s pension at 14% of the retirement pension that you build up. Each of your children will be paid an orphan’s pension until he or she turns 21. Children who have lost both parents (double orphans) receive an orphan’s pension at double the value.

    Important!
    The flex pension provides for the accrual of the survivor’s and orphan’s pension on an income up to € 110,111. If you earn more than € 110,111, your employer has taken out insurance for you with ABN AMRO Pensions. This insurance ceases if you leave the Company. To find out more about this insurance, contact ABN AMRO Pensions.

    The level of the survivor’s pension and of the orphan’s pension is stated on your Uniform Pension Overview and at www.mijnpensioenoverzicht.nl (in Dutch).

    Survivor’s allowance from the government
    In the event of your death your partner may be entitled to a statutory survivor’s allowance from the government under the Surviving Dependants Benefits Act (ANW). There are conditions attached to this. Your partner has not reached the AOW pension age, or have to care for one or more children below the age of majority or be partially disabled (incapacitated/unfit for work). More information about this can be found on the website of the Social Insurance Bank www.svb.nl

    If your partner does not receive a (full) ANW allowance from the government, you can take out ANW shortfall insurance with us. For the options, look at ‘What options do you have’ or go to www.philipspensioenfonds.nl/anwhiaat (in Dutch)

  • If you stop working because of disability, you continue to (partly) accrue pension. You no longer have to pay a pension premium. You will also be entitled to disability pension.


    Paid-up continuation of pension accrual in the event of disability
    If your employment with Philips or Signify is terminated due to disability (incapacity/unfitness for work), you are entitled to continued pension accrual without having to pay a premium (contribution). This paid-up pension accrual depends on the degree of disability. If you are partially disabled, then continuation of pension accrual is also partial, i.e. no contribution is payable for that part.

    For as long as you are disabled you continue to accrue pension benefits until you reach the age of 68, unless you reach the AOW retirement age before that time, in which case pension accrual stops then. Paid-up continuation of pension accrual applies not only to your retirement pension but also to the survivor’s pension. Furthermore you remain insured for the orphan’s pension.

    Important!
    In the event of disability you continue under the Philips flex pension to accrue pension benefits on your income up to € 110,111 without having to pay a contribution any more. If you earn more than € 110,111, your employer has taken out insurance for you with ABN AMRO Pensions. To find out more about this insurance, please contact ABN AMRO Pensions.

    In addition, you are entitled to a disability pension. This supplements the statutory WIA benefit. You are automatically insured for this disability pension. The level of the disability pension depends on the degree of disability and the level of your salary before you became unfit for work. The benefits agency UWV determines what your disability percentage is.

    To be eligible for the full disability pension, you have to be at least 80% disabled (based on the norms of the WIA – Work and Income (Capacity for Labor) Act). Different percentages apply to partial disability. More information and examples of calculations can be found at www.philipspensioenfonds.nl/arbeidsongeschiktheid (in Dutch).

    Important!
    If the disability percentage changes, you must notify Philips Pensioenfonds as quickly as possible.

  • If you want to know exactly what our pension scheme offers you, click here). There you will also find our pension scheme rules.


    Pension Rules & Regulations
    To find out exactly what our pension plan offers, look at the information pages on our website or read our Pension Rules & Regulations.

What do you not receive under our pension scheme?

  • This section is not applicable to your pension scheme, as you accrue retirement pension and survivor’s pension. In addition, an orphan’s pension is insured for any children that you might have. Your pension scheme also provides for a supplement to the statutory disability benefit if you stop work because of disability. Furthermore, in that case you no longer have to pay a pension premium, while accrual of pension (partly) continues. You do not accrue these pensions on your income above € 110,111.

How do you accrue pension?

  • You accrue pension in three ways:

    • A. AOW benefit: you receive this pension from the state. You can read more about this at www.svb.nl/int/en.
    • B. Retirement pension with Philips Pensioenfonds. You accrue this pension via your employer. This Pension 1-2-3 deals with this.
    • C. Pension that you arrange yourself. For example with an annuity or bank savings.


    A. General Old Age Pensions Act (AOW)
    The AOW is the statutory pension that you receive from the government. You receive a full AOW pension if you have always lived or worked in the Netherlands in the 50 years before reaching your AOW retirement age. The AOW retirement age is no longer the same for everyone. To find out your AOW retirement age, go the website of the Social Insurance Bank (SVB): www.svb.nl.

    The amounts of AOW pension are adjusted annually. For the amounts and further information about the AOW, consult the website www.svb.nl.

    Important!
    If you have not always lived or worked in the Netherlands, your AOW pension may be lower.

    B. The occupational pension that you accrue
    You can find out the level of this pension on your Uniform Pension Overview (UPO). You receive the UPO once a year for as long as you accrue pension benefits with Philips Pensioenfonds. The UPO shows the retirement pension that you have now accrued and also the pension at your retirement age if you continue to accrue pension benefits with Philips Pensioenfonds until that time. The UPO also shows details of the survivor’s and the orphan’s pension, i.e. a pension for your partner and children in the event of your death. If you go to www.mijnpensioenoverzicht.nl (in Dutch), you will also find an overview of all the pension benefits that you have accrued with any previous employers.

    C. Your own supplementary pension provisions
    You can arrange to supplement your AOW and your occupational pension, for example in the form of bank savings or an insurance policy such as an annuity.

    Important!
    If you earn more than € 110,111, you can save for extra pension via the voluntary net pension plan with ABN AMRO Pensions. To find out more about this, contact ABN AMRO Pensions.

     

  • You accrue part of your pension each year. The pension that you receive on retirement is the sum of all these parts. From the date of your retirement you receive this pension for as long as you live. How much pension you accrue depends on the available pension premium. This is called a collective defined-contribution scheme (CDC).


    You accrue pension benefits in an average-pay plan
    Each year you accrue pension benefits on a portion of the gross salary that you earned in that year. You do not accrue pension on your whole gross salary, because Philips Pensioenfonds takes into account the state pension (AOW) that you receive from the government when you retire. The portion of your salary on which you do not accrue pension benefits is called the ‘franchise’.

    Each year you accrue 1.85% pension on your gross salary minus the franchise. The total pension that you accrue in this way is the sum of all those years plus any increase (indexation). From your retirement age you receive this amount of pension each month for as long as you live. This is called an average-pay pension plan.

    The accrual rate of 1.85% is not fixed. Under certain circumstances it may even be lower. In that case you accrue less pension for a certain period.

    Important!
    The flex pension provides for the accrual of pension benefits on an income up to € 110,111. If you earn more than € 110,111, you can save for extra pension via the voluntary net pension plan with ABN AMRO Pensions. To find out more about this, contact ABN AMRO Pensions.

  • You accrue part of your pension each year, though not on the basis of your whole gross salary. Because in 2019 you do not accrue pension benefits on € 14,484, the reason for this ‘threshold amount‘ being that you already receive a basic pension, the AOW benefit, from the state. Each year you accrue 1.85% pension on the gross salary (up to a maximum of € 110,111) minus the threshold amount. The accrual percentage of 1.85% is not fixed. The accrual percentage can be lowered under certain circumstances.


    Accrual rate
    Each year you accrue pension benefits on a portion of the gross salary that you earned in that year. The portion of your salary on which you do not accrue pension is called the ‘franchise’. Each year you accrue 1.85% retirement pension on the gross salary minus the franchise.

    The accrual rate of 1.85% is not fixed. Under certain circumstances it may even be lower. In that case you accrue less pension for a certain period.

    Example
    Let us suppose that you earn € 25,000 per year. The franchise is € 15,000. In that year you accrue 1.85% retirement pension on the pension base of € 10,000. That is € 185 in that year. The retirement pension that you receive annually on retirement is the sum of all the years plus any increase (indexation).

    Important!
    The flex pension provides for the accrual of pension benefits on an income up to € 110,111. If you earn more than € 110,111, you can save for extra pension via the voluntary net pension plan with ABN AMRO Pensions. To find out more about this, contact ABN AMRO Pensions.

  • Each month you pay a contribution to your employer for your pension. Your employer then pays your pension premium to Philips Pensioenfonds, in the form of a fixed percentage of the amount on which you accrue pension rights. This premium includes the employee contribution. The gross level of your contribution can be seen on your salary statement.


    You and your employer both contribute toward your pension
    Every month, you and your employer pay a pension premium (contribution). These premiums effectively represent the price of your pension. Your employer contributes fixed percentages of the pension bases from which the pension plans are paid. The total fixed percentages contributed are:

    - For the flex pension (under the collective labour agreement): 29.4%
    - For the flex ES pension (for Executives and Senior Directors): 30.3%

    These premiums will remain unchanged until 2021. They include the employee’s own contributions. Philips employees pay 2% of the pension base to the employer. Signify employees pay 5% of the pension base to the employer. The pension base is the portion of your salary, with a maximum of € 110,111, on which you accrue pension rights.

    Every month, your employer pays the pension premiums to Philips Pensioenfonds. Your employer withholds your contribution to the pension premiums from your gross monthly wages. The precise amount is shown on your salary statement. The premiums that your employer pays do not appear on your salary statement.

     

What options are available to you?

  • If you accrued a pension with a previous employer, you may generally choose to carry it over to Philips Pensioenfonds.


    Value transfer
    If you have changed jobs and now fall under a new pension plan at a new employer, the value of the annual pension that you have accrued determines what will happen with your pension.

    If the pension that you have accrued has a value of more than € 497.27 per year, you may choose whether or not you wish to carry it over to Philips Pensioenfonds. This ‘value transfer’ can be a good choice if your new employer offers a better pension plan, for example, or if you want to have all your pensions kept by a single pension administrator. Inform Philips Pensioenfonds if you want to carry over your pension. Philips Pensioenfonds can make arrangements to transfer your pension. It is important to find out as much information as you can before you make any decision. Whether or not a value transfer is the right choice for you depends on various factors, including the differences between the pension plans and the finances of your previous pension administrator and Philips Pensioenfonds. If you decide not to carry over your pension, it will remain with your previous pension administrator and will start paying out when you retire. You will no longer contribute premiums to your previous pension administrator, and instead will start accruing a pension with Philips Pensioenfonds. Contact us if you need help deciding what to do.

    If the annual pension that you have accrued has a value of less than € 497.27, but more than € 2, ask your previous pension administrator what the arrangements are for value transfers with small pensions. If you changed jobs after 1 January 2018, your previous pension administrator might automatically arrange for your pension to carry over to Philips Pensioenfonds. If so, your previous pension administrator will check www.mijnpensioenoverzicht.nl every year to see whether you are accruing a pension with a new pension administrator. You will not need to state a preference. If you have the option of deciding for yourself, and you want to carry over your small pension, let Philips Pensioenfonds know your preference.

    Is the value of the annual pension that you have accrued less than € 2? Then your pension rights will lapse by law. Read our annual report to find out what we do with the amounts that are released under this rule.

     

  • You can compare your pension plan with other pension plans by means of the Pension comparison. Go to the Pension comparison.

  • Do you have a partner who is not entitled to a (full) ANW benefit from the Dutch state in the event of your death? In that case, on certain conditions you can take out ANW shortfall insurance with Philips Pensioenfonds.


    ANW shortfall insurance
    In the event of your death your partner will receive a survivor’s pension from Philips Pensioenfonds. In addition, your partner may be entitled to a statutory survivor’s allowance from the government under the Surviving Dependants Benefits Act (ANW). There are conditions attached to this. Your partner has not reached the AOW pension age, or have to care for one or more children below the age of majority or be partially disabled (incapacitated/unfit for work). If your partner does not receive a (full) ANW benefit from the government, you can take out voluntary ANW shortfall insurance with Philips Pensioenfonds. Your partner will then receive an extra amount each month from Philips Pensioenfonds in the event of your death.

    You can take out this insurance if your partner has not reached the AOW pension age. And you can only take out ANW shortfall insurance within two months after:

    • you have entered into employment with Philips;
    • you enter into a (new) relationship;
    • you have had a child.

    As of April 2019 the maximum amount that can be insured is € 17,712 per year. You can also opt for a different amount: € 11,808 or € 5,904 per year. The amount insured can be reduced at any time. It can be increased only if you have just had a child, in which case you must notify us within two months after the birth of your child.

    The contribution that you pay depends on your age and the amount insured. It is deducted from your gross monthly Philips salary. ANW shortfall insurance continues until you reach the age of 68. If at that time your partner is younger, you can continue the insurance by paying an individual contribution until your partner reaches the AOW retirement age.

    Your insurance ends automatically if any of the following situations arises:

    • your relationship has ended
    • you no longer work for Philips
    • your partner reaches the AOW retirement age
    • your partner dies

    You can terminate your insurance at any time, in which case we arrange for the payment of contributions to end.

    More information about the government’s ANW plan can be found on the website of the Social Insurance Bank (SVB) www.svb.nl

  • You accrue pension on your income up to € 110,111. If your income is more than € 110,111, you can save for an additional pension through your employer's voluntary net pension scheme at ABN AMRO Pensioenen (+31 (0)20 – 583 11 11).


    Separate pension plan if you earn more than €
    110,111
    The flex pension provides for the accrual of pension benefits on an income up to € 110,111. If you earn more than € 110,111 you can save for extra pension via the voluntary net pension plan with ABN AMRO Pensions. To find out more about this, contact ABN AMRO Pensions. Furthermore, if you earn more than € 110,111 Philips or Signify has, as a standard arrangement, taken out term insurance for you with ABN AMRO to provide for a survivor’s pension in the event of death and continued pension accrual in the event of disability (incapacity/unfitness for work). To find out more about this, contact ABN AMRO Pensions on telephone number 020 – 583 11 11. Or go to www.abnamropensioenen.nl/mijnpensioen/ 

  • Do you want to exchange (part of) your partner’s survivor’s pension for retirement pension for yourself? You can do so when you retire.


    Exchanging survivor’s pension for retirement pension
    As well as a retirement pension, you accrue a survivor’s pension, i.e. an income for your partner in the event of your death. Check your Uniform Pension Overview to see how much survivor’s pension you have accrued.

    If you are retiring, you can exchange (part of) the accrued survivor’s pension for a higher retirement pension for yourself. This may be an option if your partner has sufficient income him/herself. Or if you do not have a partner or no longer have a partner. You can also completely forego a survivor’s pension, in which case your partner will no longer be entitled to a survivor’s pension in the event of your death, but you will be entitled to a higher retirement pension for the rest of your life.

    Important!
    Once you have decided on retirement to exchange or not to exchange the survivor’s pension, this decision can no longer be reversed. If you have a partner, he/she has to agree to your choice.

  • Do you wish to retire earlier or later than at the standard retirement age? That is possible, though your retirement age has to be between 60 and 70. Are you retiring before the AOW pension age? This means that you do not yet receive an AOW pension from the state. In that case you can purchase a bridging pension until your AOW pension age.


    Retiring earlier or working longer
    As a participant in the Philips flex pension you can choose when to retire, though your retirement age must be between the ages of 60 and 70.

    Instead of retiring at 68 you can therefore choose to continue working. If you retire later your accrued retirement pension will be higher and pension accrual continues for as long as you work. If you wish to retire between the ages of 68 and 70, you can only do so with Philips’ consent. Consult the pension plan rules for the conditions governing the postponement of retirement.

    You can also choose to retire before the age of 68. However, if you wish to retire between the ages of 60 and 68 that means that your retirement pension will be lower. Earlier retirement has financial repercussions, therefore. Pension accrual ends earlier and the retirement pension is lower.

    You have to bear in mind that the state pension (AOW) might start later than your early retirement. Go to www.svb.nl to see when the AOW takes effect. If you retire before the AOW retirement age, you can purchase a bridging pension from Philips Pensioenfonds until your AOW retirement age. If the AOW retirement age is raised after you have started drawing your pension, you can still adjust your bridging pension to make allowance for the new AOW retirement age. This possibility remains open until the date on which you would start receiving your state pension under the old rules. You can determine the level of this bridging pension yourself.

  • Do you want to start with a higher pension and receive a lower pension later? That is also possible. This is known as the high-low scheme.


    Beginning with a higher pension
    You can also choose to receive a higher retirement pension for the first few years and then a lower retirement pension later. This is called the high-low scheme. You can receive a higher pension until you receive your AOW state pension or until you reach the age of 72. Thereafter your retirement pension is lower than stated on your Uniform Pension Overview.

    Important!
    This is a once-only choice! So once you have opted for this, the decision can no longer be reversed.

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How secure is your pension?

  • The level of your pension is not fixed. This is because Philips Pensioenfonds has to deal with, among others, the following risks:

    • Low interest rates make pensions more expensive. They mean that Philips Pensioenfonds needs more money to be able to pay the same pension.
    • On average, people are living ever longer. This means that we have to pay pensions for longer.
    • The accrual percentage of 1.85% is not fixed. Under certain circumstances it can be lowered.
    • The results of our investments may be worse than expected.


    What risks are there?
    The accrual and the payment of a pension cover a very long period. It can be as much as 80 years from the beginning of pension accrual to the last pension payment. In such a period the world changes, and so risks can arise which represent a threat to your pension. The risks may result in a deficit.

    Interest rates affect the value of pensions. Pension administrators make an estimate of the money that they will need to be able to pay the pensions. The lower the interest rate, the more funds Philips Pensioenfonds must have in order to be able to pay all future pensions. If the interest rate remains low for a long time, that will make the pensions more expensive.

    Philips Pensioenfonds tries to be prepared for the risks that can pose a threat to your pension. This has not always been easy. For example, because of the rapid increase in life expectancy. This increase has been greater than anticipated. If, on average, participants become older, their pension has to be paid for a longer period of time. In that case the Pension Fund has to have more money than first anticipated.

    Philips Pensioenfonds uses the total pension premium (contribution), minus costs, for financing your annual pension accrual rate of 1.85%. If the annual pension premium payment is not sufficient to finance the accrual rate of 1.85%, the accrual rate for that year is lowered and for that year you accrue less pension.

    It is also possible that the investment results turn out to be worse than expected. That is why Philips Pensioenfonds seeks to spread the investments over several types of investment. A good return on one investment can compensate for a loss on another. A pension administrator can also hedge investment risks, though costs are involved in this.

    There are more risks which Philips Pensioenfonds has to take into account in order to protect your pension as much as possible. Philips Pensioenfonds has to manage these risks, therefore. More information about the risk management of Philips Pensioenfonds can be found in our annual report, which you can find in layer 3 of Pension 1-2-3.

    Policy resolutions of the Board of Trustees on the level of the premium and on indexation are largely based on the funding ratio of the Pension Fund. From 2015 pension administrators have to make use of what is known as the policy funding ratio when making policy decisions. The policy funding ratio is the average of the last twelve funding ratios. It is an average over twelve months.

     

  • Each year Philips Pensioenfonds seeks to increase your accrued pension by the level of the collective scale adjustment within Philips (this also applies if you work for Signify). This is known as ‘indexation’. It cannot simply be assumed, however, that indexation will take place. Whether and, if so, to what extent pensions will be increased by indexation depends on the financial assets of Philips Pensioenfonds. In the past three years Philips Pensioenfonds increased the accrued pensions as follows:

      Increase as of 1 April Our ambition Price inflation
    2020 0.64% 2.0% 1.8%
    2019  2.25% 3.0% 2.2%
    2018  0.22% and 0.38% as per 1 November 1.5% 1.5%

     


    Inflation-proof / Increases in your pension
    If prices rise each year, money loses value and you can buy less with the same amount than in the previous year. This is what is called price inflation. Philips Pensioenfonds therefore tries to increase your accrued pension each year in line with the wage inflaton (collective salary scale adjustment in the Philips Collective Employment Agreement, also for those working at Signify). We refer to this as our ‘ambition’.

    Indexation not always possible
    It is not always possible to ensure that pensions grow in line with the collective CEA salary adjustment at Philips. Whether and, if so, to what extent indexation is possible depends on the financial situation of Philips Pensioenfonds. If the policy funding ratio is too low, Philips Pensioenfonds may not be able to increase, or fully increase, your accrued pension. In that case your pension will be worth less. If financial circumstances subsequently improve, compensatory indexation may be possible.

    Annual decision
    The Board of Trustees decides each year whether and, if so, to what extent your accrued pension is to be increased by means of indexation. This is based on what is called the indexation policy ladder. This stipulates at what policy funding ratio full or partial indexation can take place. The Board of Trustees can always decide not to be bound by the indexation policy ladder.

    Will your pension retain its value?
    In recent years Philips Pensioenfonds index-linked the pensions as follows*:

      Increase
    as of 1 April
    Our ambition Price inflation
    2020 0.64% 2.00% 1,80%
    2019 2.25% 3.00% 2.20%
    2018 0.22%
    0.38%**
    1.50% 1.50%
    2017 0.00% 2.10% 1.70%
    2016 0.00% 1.60% 0.60%
    2015 0.00% 1.50% 0.00%
    2014 2.05% 4.50% 1.40%
    2013 0.00% 3.00% 3.00%
    2012 0.00% 0.75% 2.50%
    2011 0.00% 0.00% 2.00%
    2010 1.00%** 1.00% 0.80%
    2009 3.50% 3.50% 1.93%

    * The figures on price inflation are based on figures of Statistics Netherlands (CBS).
    ** Increase as of 1 November

    Increase after termination of employment or retirement
    If your employment terminates or you retire, Philips Pensioenfonds adjusts your pension in a different way. It tries each year to ensure that your pension grows in line with price inflation, based on increases in the derived consumer price index.

     

  • If we have insufficient financial buffers, we take – if necessary – one or more of the following measures:

    • We do not (fully) increase your pension by means of indexation. 
    • In the most extreme case we reduce your accrued pension.
    • The premium available for your pension may be insufficient in a given year. If the premium is insufficient, you may accrue less pension.


    If there is a deficit
    If in spite of its best efforts Philips Pensioenfonds does not have sufficient funds to pay for all pensions in the long term, something has to be done. The pension administrator has the duty to weigh up as thoroughly as possible what the best solution is: not to increase (index-link) the pensions or to reduce the accrual rate of 1.85%. In both cases you accrue less pension. The Board of Trustees may also opt for a combination of measures or other solutions. In the most extreme case it may decide to reduce your accrued pension or pension benefit.

    Until now Philips Pensioenfonds has never reduced the pensions.

What costs do we incur?

  • Philips Pensioenfonds incurs the following costs in administering the pension scheme:

    • Pension administration costs
    • Asset management costs
    • Transaction costs


    What costs do we incur?
    Philips Pensioenfonds incurs various costs in administering the pension plan. For instance, administration costs, including the cost of paying pensions and collecting the contributions.

    In addition there are asset management costs, because investing the assets costs money. For example, we pay the parties who invest on our behalf. We also incur transaction costs, such as the costs charged by the stock exchange when shares or bonds are bought and sold.

    A breakdown of the costs that we incur can be found in the annual report.

When do you have to take action?

  • When you change jobs. You may generally choose to carry over previously accrued pension rights to your new pension administrator.


    If you change pension administrator
    If you change jobs and now fall under a new pension plan. The value of the annual pension that you have accrued determines what will happen with your pension.

    If the annual pension that you have accrued has a value of more than € 497.27, you may decide for yourself whether or not to carry over the pension that you have accrued with Philips Pensioenfonds. This ‘value transfer’ can be a good choice if your new employer offers a more favourable pension plan, for example, or if you want all your pensions to be kept by a single pension administrator. If you want to carry over your pension, you must inform your new pension administrator. It is important to find out as much information as you can before you make any decision. Whether or not a value transfer is the right choice for you depends on various factors, including the finances of your previous pension administrator and Philips Pensioenfonds. If you prefer not to carry over your pension, it will remain with Philips Pensioenfonds and will start paying out when you turn 68. You will no longer contribute premiums to Philips Pensioenfonds, and will start accruing a pension with your new employer’s pension administrator. Contact us if you need help deciding what to do.

    If the annual pension that you have accrued has a value of less than € 497.27, but more than € 2, and if you changed jobs after 1 January 2018, Philips Pensioenfonds will automatically arrange for your pension to be transferred to your new pension administrator. Philips Pensioenfonds will check www.mijnpensioenoverzicht.nl every year to see whether you are accruing a pension with a new pension administrator. If you do not have a new pension administrator, your pension will remain with Philips Pensioenfonds.

    If you stopped accruing pension rights after 1 January 2019, and the value of the annual pension that you have accrued is less than € 2, your pension rights will lapse by law. Read our annual report to find out what we do with the amounts that are released under this rule.

     

  • If you become disabled.


    If you become disabled
    If you become more than 35% disabled (incapacitated/unfit for work) and your employment is terminated because of disability, you are entitled to (partial) continuation of your pension accrual without having to pay any more contributions. You are also entitled to a disability pension. This paid-up pension accrual and the disability pension depend on the degree of your disability. It is important for you to have a clear picture of the repercussions of your disability on your pension. If your disability changes, the benefits agency UWV automatically notifies us. You are also informed by UWV of changes in the level of your disability. You are obliged to pass on this information to Philips Pensioenfonds, so as to prevent your pension accrual and your disability pension from being incorrectly too high or too low. You can do this by sending us a copy of the letter from UWV.

    Important!
    If you earn more than € 110,111, your employer has taken out insurance for you with ABN AMRO Pensions for pension accrual on your earnings above € 110,111. If the level of your disability changes, you must also notify ABN AMRO Pensions.

  • If you marry, start cohabiting or enter into a registered partnership.


    If you marry or enter into a registered partnership
    If you are married or if you have a registered partnership, your partner will be entitled to a survivor’s pension in the event of your death. You can see on your Uniform Pension Overview and at MijnPPF how much pension your partner will receive in the event of your death. If you believe that the provisions for a survivor’s pension are insufficient, you should arrange for extra cover.

    Important!
    If you have entered into non-marital cohabitation, your partner will not automatically be entitled to a survivor’s pension in the event of your death. In order for your partner to be eligible for this, you have to register your partner with Philips Pensioenfonds. You can register your partner on the 'Partner Registration' form. Only if your partner is known to us will he/she be entitled to a survivor’s pension in the event of your death.

    If you live outside the Netherlands, you must always notify us when you get married, enter into non-marital cohabitation or enter into a registered partnership.

    Important!
    If you earn more than € 110,111, your employer has taken out insurance for you with ABN AMRO Pensions for the accrual of your survivor’s pension on your earnings above € 110,111. If your civil status changes, you must also notify ABN AMRO Pensions.

  • If you get a divorce or your cohabitation or registered partnership is terminated.


    If you divorce or terminate your registered partnership
    Your ex-partner is entitled to half of the retirement pension that you accrued during the marriage or the period of the registered partnership. You can make other arrangements with your ex-partner. Such arrangements have to be set down in a divorce settlement. You or your ex-partner must notify Philips Pensioenfonds of the divorce and of any other arrangements that you make. You must do so within two years after the date of the divorce.

    The entitlement to part of the retirement pension does not apply if you and your partner cohabited but were unmarried. Persons who enter into non-marital cohabitation have to make their own arrangements regarding the division of the pension.

    Your ex-partner is also entitled to the survivor’s pension that you accrued up to the date of divorce or termination of the registered partnership. You do not have to take any action for the entitlement to the survivor’s pension unless your ex-partner does not want a survivor’s pension and waives the entitlement to it, in which case you must notify Philips Pensioenfonds of this.

    Important!
    Persons who cohabit but are unmarried may also be entitled to a survivor’s pension. If you cohabit and then separate, you have to de-register your partner. To do so, you can use the 'Partner Registration' form.

    If you live outside the Netherlands and your relationship is terminated, you must always de-register your partner with us.

    Important!
    If you earn more than € 110,111, your employer has taken out insurance for you with ABN AMRO Pensions for the accrual of your survivor’s pension on your earnings above € 110,111. If your civil status changes, you must also notify ABN AMRO Pensions.

  • If you move abroad.


    If you move abroad
    Notify Philips Pensioenfonds of your new address and discuss the consequences for your pension. To do this, fill in the ‘Change of Address’ form. Information about the consequences for the state pension (AOW) can be obtained from the Social Insurance Bank. Or go to www.svb.nl.

    Important!
    You must also notify Philips Pensioenfonds of your new address if you relocate while abroad.

  • A complete overview of your pensions can be found at www.mijnpensioenoverzicht.nl (in Dutch).


    At MijnPPF you can:

    see exactly how much pension you have accrued at present in the flex pension;

    work out how high your pension will be on your retirement date;

    see the financial consequences of your choices.

    Mijnpensioenoverzicht.nl
    To see each year how much total pension you have accrued, go to www.mijnpensioenoverzicht.nl (in Dutch).

  • If you wish to exercise an option.


    Choosing an option
    The options can be found in this second layer of Pension 1-2-3 under ‘What options do you have?’

    Important!
    Once you have chosen an option it can no longer be reversed. So make sure you are well informed before you choose.

  • If you have any questions, go to the Contact form or call the Service Desk on telephone number +31 (0)30 – 277 56 40. You can call us on working days between 9 a.m. and 5 p.m.


    Any questions?
    For all questions about your pension plan, go to 'Contact'. You can also call the Service Desk on telephone number +31 (0)30 – 277 56 40. You can call us on working days between 9 a.m. and 5 p.m.

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