With effect from 1 July 2019 you have a new pension plan, which also covers risk-based surviving dependants’ pension. In this article, NN CDC Pensioenfonds answers several frequently asked questions.

With effect from 1 July 2019, a pension for your partner and orphans is insured on a risk base. The accrual rate targeted for surviving dependants’ pension has been set at 1.3125% of your pension base. Orphans’ pension is 20% of partner pension.

What is risk-based partner pension?
Risk-based partner pension is only paid out if you pass away while you are employed. If you leave the company, part of your old age pension will automatically be converted into partner and orphans pension. This ensures that your (current and/or future) partner and children will get pension benefits if you pass away when you're no longer employed.

What happens if you leave employment?
If you leave the company, part of your old age pension will automatically be converted into partner and orphans pension. As a result of the conversion, the old age pension you build up after 1 July 2019 will be 10% to 20% lower on average. Any surviving dependants’ pension accrued before 1 July 2019 will remain unchanged.

Why does the pension fund carry out this automatic conversion?
The automatic conversion ensures that your (current and/or future) partner and children will get pension benefits if you pass away when you are no longer employed.

Can I cancel the conversion?
Yes, you can cancel the conversion within six months after leaving the company. Use the form ‘Cancellation of conversion’, which you can download from the website. If you have a partner, make sure you discuss the consequences with him/her and have them co-sign the completed form before you send it to the pension fund.

What is the risk of cancelling the conversion?
Cancelling the automatic conversion means that if you pass away after your employment has ended, NN CDC Pensioenfonds will not pay out pension benefits to your (current and/or future) partner and children from pension accrued after 1 July 2019. Only the surviving dependants’ pension accrued before 1 July 2019 will remain unchanged.

Will I be able to revoke my decision to cancel conversion later on?
You will only be able to revoke your decision when you retire. At that point, you will again be given the option of conversion. Make sure you understand the consequences ahead of time, by getting in touch with the Pension Desk, visiting the website or consulting the Pension Planner.