You and your employer both contribute to your pension. This has been agreed under the Collective Labour Agreement. Your share of the contribution is equal to a percentage of your pension base and is automatically deducted from your salary every month. You cannot make additional contributions to your pension.

Your employer pays pension contributions to the pension fund on a monthly basis. In addition, you pay a contribution that amounts to 6% (in 2018) of your monthly pension base. Your employer deducts your contribution from your gross salary every month. The exact amount is specified on your payslip. The amount of the contribution paid by NN Group is determined according to a fixed calculation method and is not shown on your payslip. You cannot make additional contributions to your pension plan.

Average salary system
The total amount of pension you eventually build up is the sum of the pension you accumulate over the years and the increases granted by the pension fund to keep your pension in line with inflation (indexation). Salary raises are only included in your pension accrual for future years. This means your pension is eventually based on the average salary you earn throughout your career, which is why it’s called an average salary system. Starting on the date of your retirement, your pension benefits will be paid out to you every month for the rest of your life.

Gradually rising employee's contribution
The employee’s contribution is gradually rising. In 2018 the employee’s contribution was 6% and it is scheduled to rise to 7.5% of the pension base by 2020. The gradual rise is as follows:

2018: 6%
2019: 7%
2020: 7.5%

A little extra
Although you cannot pay additional contributions into your pension plan, there are other ways of increasing your retirement income. Making a list of your future income and expenses well ahead of time will help ensure that you’ll have enough retirement income. The Pension Planner will also help you. The ‘On Track’ module calculates whether your combined pension through NN Group and former employers, plus your Dutch State pension (AOW), are on track. The tool suggests actions you could take to improve your outcome. So you can really get to work, no matter how old you are or how long you've been working for NN Group.

Curious? Log in using your DigiD and start planning. Any other questions? Please contact the Pension Desk.