FAQ Actuarial Retirement Age 67
1. What is set to change?
With effect from 1 January 2018, the annual pension accrual rate will be lowered from 1.875% to 1.738%. The actuarial retirement age is not changing and will continue to be 67.
2. What is the reason for this change?
With the ageing of the Dutch population, pensions need to paid out over a longer period of years. This is why the government had already decided to raise the actuarial retirement age from 65 to 67 and the retirement age for Dutch state pension (AOW) by three months a year starting in 2022. The actuarial retirement age now needs to be raised again.
3. What are the consequences?
The government has decided to raise the actuarial retirement age from 67 to 68 with effect from 2018. At the same time, the 1.875% annual pension accrual rate for average-salary pension plans will remain the same. Based on the government’s decision, it is up to the social partners to make the next decision. If they decide not to raise the actuarial retirement age, the pension accrual rate will have to be lowered.
4. What have the social partners (i.e. ING and the trade unions) agreed upon?
The social partners have decided to retain the pension fund’s current standard retirement age at 67. As a consequence of this decision, the annual pension accrual rate will be lowered from 1.875% to 1.738%.
5. Was ING CDC Pensioenfonds involved in the decision-making process?
No, it was not. The social partners are the ones who make decisions regarding the pension agreement. The pension fund is then asked to assess whether it will be able to execute, fund and communicate the envisaged change. In this case, the answer was affirmative.
6. Will the decision affect my pension?
Yes, it will. In 2018, your annual pension accrual rate will be 1.738% instead of 1.875%. Example: if your gross annual income for 2018 is 60,000 euros, your pension accrual for that year will be 64 euros less than it was in the year before. The advantage is that your retirement age will still be 67.
7. Will the decision affect the pension I have accrued in Pensioenfonds ING?
No, it will not. The decision has no implications for pension you already accrued in Pensioenfonds ING.
8. Can I align my AOW retirement date with my pension fund’s retirement date?
Yes, the provisions of ING CDC Pensioenfonds allow you to do that. Go to the Pension Planner to find out what your options are.
9. Can I bring forward or defer the starting date of my Dutch state pension (AOW)?
No, you cannot do that.
10. If I receive occupational disability benefits, will they be paid out until I reach my Dutch state pension (AOW) retirement age?
No, they will not. If an employee currently receives occupational disability benefits and has not yet reached the age of 66 (which is the AOW retirement age as at 1 January 2018), the benefits will be paid out until the employee reaches his/her employer’s pension fund retirement age – as long as the employee is on sick leave.
11. Is there any way to bridge a possible gap until I reach my AOW retirement age?
The government is assuming that employees will bridge a possible gap until their AOW on their own account. However, not everyone has been able to prepare for the rising AOW retirement age. ING CDC Pensioenfonds offers options for bridging the AOW gap. Check your options in the Pension Planner.
12. I am currently on sick leave and I am building up part of my pension on a contribution-free basis. How will this change affect me?
In your situation, your pension accrual rate will also be lowered from 1.875% of your pension base to 1.738%, while your retirement age will remain 67.
13. I no longer work for ING, but I have accrued a pension in ING CDC Pensioenfonds. How will this affect me?
The decision concerns the accrual of pension with effect from 1 January 2018. This means the decision will have no implications for pension you already accrued in the past.
14. I am receiving pension benefits from ING CDC Pensioenfonds. How will this affect me?
The decision concerns the accrual of pension with effect from 1 January 2018.This means the decision will have no implications for pension you already accrued in the past.
15. The current CDC pension plan runs until 31 December 2018. What does this mean for my pension?
Over the next few months, the social partners will renegotiate the pension agreement. They should reach an agreement sometime in 2018. The implications for your pension will then be announced.
16. Will the changes also take into account possibilities for further alignment between the conditions of ING CDC Pensioenfonds and those of Pensioenfonds ING?
The conditions of these two pension plans are always aligned as much as possible. Take, for example, options for early retirement or conversion of partner pension. The two pension plans will continue to be aligned where possible.
17. Where can I find more information?
A newsletter with more information was posted on the website on 7 November 2017.