The social partners (NN Group and the trade unions) have agreed on the terms of a new pension plan. If you are currently a participant of NN CDC Pensioenfonds, the new pension plan will apply to you as from 1 July 2019. For employees participating in Pensioenfonds Delta Lloyd, the transition will take effect on 1 January 2020. From that date on, all employees will be participants of the new pension plan managed by NN CDC Pensioenfonds.

The new pension plan will apply from 1 July 2019 to 31 December 2021. The plan includes new provisions for the standard retirement age, pension accrual, pension contributions and risk-based partner pension. What does this mean for you?

Standard retirement age
With effect from 1 January 2020, the standard retirement age will be raised from 67 to 68 years. However, you will still be able to opt for early retirement (on a full or part-time basis) from the age of 60.

Pension accrual
Old age pension
The accrual rate targeted for your old-age pension in 2019 has been fixed at 1.738% of your pension base, based on the standard retirement age of 67. For 2020, the accrual rate has been fixed at 1.875%, based on the standard retirement age of 68.

Surviving dependants’ pension
Your partner’s pension and orphans’ pension will be insured on a risk base with effect from 1 July 2019. The accrual rate targeted for surviving dependants’ pension has been fixed at 1.3125% of your pension base. Orphans’ pension is 20% of partner pension.

Pension contribution
With effect from 1 July 2019, your part of the pension contribution is 6%. An important change is that the employer's part of the pension contribution will no longer be determined annually. For the period from 1 July 2019 to 31 December 2021, the employer's pension contribution has been fixed at 30% of the pension base. 

Pension accrual
Every year as at 30 September, NN CDC Pensioenfonds assesses whether the fixed contribution will be sufficient to cover the pension accrual targeted for the year ahead. If the fixed contribution is insufficient, the accrual rate of your pension will be lowered. The assessment is based mainly on market interest rates: if these interest rates decrease, the cost of pension accrual increases.

The accrual rate for the second half of 2019 will be based on a different reference date, as the new pension plan is taking effect mid-year. The reference date for 2019 is 31 March 2019. For the second half of 2019, the 30% fixed contribution will be sufficient to fully cover the pension accrual targeted for 2019. This means the pension fund will not need to lower the accrual rates targeted for your old-age pension (1.738%) and partner pension (1.3125%).

Risk-based partner pension
Partner pension provides a substitute income for your partner in the event that you pass away before your (current or future) partner does. Under the new pension plan, partner pension will be risk based instead of accrual or savings based (the latter two are the same). The change is very relevant, as risk-based partner pension is only paid out if you pass away while you are still employed. If you leave the company, you will have the option of converting part of your old-age pension into partner pension to ensure that your partner will get partner pension if you pass away when you are no longer employed. Note that as a result of the conversion the pension you build up after 1 July 2019 will be 10% to 20% lower on average (depending on your age when you leave the company).

If you do not want to opt for conversion, you must report this to NN CDC Pensioenfonds within six months after leaving the company. You will receive the relevant form when you leave.

If you are leaving due to retirement, you also have 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.

Resigning or retiring

NN CDC Pensioenfonds is currently adjusting its administrative systems and records to accommodate the new pension plan. If you have any questions about this because you will soon be resigning or retiring, please contact the Pension Desk.

Is your pension on track?
Is the new pension plan making you think about your pension? Would you like to find out how much income you’ll need when you retire? And whether your pension is on track to achieving that goal? Would you like to find out what pension choices you can make? Use the Pension Planner to find out how much has already been saved into your pension through NN CDC Pensioenfonds (and possibly Pensioenfonds ING) as well as through any of your previous employers’ pension plans and the Dutch state pension plan (AOW). If you think your pension will not cover your expenses when you’ve retired, the Pension Planner will help you find out what you can do to increase your retirement income. Go to ing.cdcpensioen.nl and log in to the Pension Planner using your DigiD.