The Pension Desk has received scores of questions regarding the coronavirus. Not only about the impact on the funding ratio, but also on how the pension fund is ensuring continuity of its services. We've selected a number of their questions

There's no way around it: all of us are being confronted with the impact of the coronavirus. While you’re busy organising your work from home and caring for your family, we're making sure all your pension related services are being provided as usual. And of course, we monitor the financial markets because they affect the pension fund's investments and returns. Below is a selection of the frequently asked questions we’ve received since March.

Why are funding ratios declining?
On the one hand, pension funds’ commitments to their participants are growing due to low interest rates. When interest rates are low, pension funds are required by law to reserve larger amounts of money to safeguard their commitments. On the other hand, the pension fund's investments are losing value, particularly due to declining stock market prices. These factors are causing funding ratios to decline.

Does the coronavirus crisis have any implications for surviving dependants pension?
The coronavirus does not have implications for your surviving dependants’ pension. If you pass away, your partner and children will receive a pension to ensure they have an income.

On 1 July 2019 a new pension plan came into effect, providing for a risk-based pension for surviving dependants which is paid out if you pass away while you're still employed.

If you leave the company, part of your old age pension will automatically be converted into partner pension (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.

Important note: 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 (depending on your age when you leave the company). For more information, visit the website.

Will the pension fund pay out if I pass away in a risk area?
Yes, if you pass away in a risk area, the pension fund will pay out a pension to your surviving dependants.

How is the pension fund keeping me up-to-date on the latest developments?
The fund publishes regular news items and quarterly reports on its website. Click here for the most recent update.

Contact us
If you cannot find the answer you're looking for, let us know. The Pension Desk staff is happy to help you.