With effect from 1 January 2019, ING CDC Pensioenfonds will administer your new pension plan. This plan has been agreed by and between the social partners (the employer and the trade unions). An important change is that the employer’s part of the pension contribution will no longer be determined on an annual basis. For the year 2019, the fund has assessed that this change will not have any implications for your old-age and partner pension accrual.
ING CDC Pensioenfonds will administer your new pension plan for the next five years. A summary of the characteristics:
- The pension fund aims to realise an annual pension accrual at a percentage of the pension base that corresponds with your salary in that year. We call this an average salary system.
- In a CDC pension plan, the participants bear the risks. This has not changed.
- The standard retirement age continues to be 67 and early retirement (on a part-time basis) continues to be an option from the age of 60.
- The fund will reassess the accrual rate targeted for your old-age pension every year. The 2019 accrual rate for old-age pension has been fixed at 1.771%.
- The targeted accrual rate of partner pension has been fixed at 1.313%. Orphan’s pension is 20% of partner pension.
- Starting on 1 January 2019, ING will be insuring additional temporary partner pension for every employee at ING CDC Pensioenfonds. Contributions for this pension will be fully paid for by the employer.
- In 2019, the employee’s part of the annual pension contribution will be 7% and for the years 2020-2023 it will be 7.5% per year.
- An important change is the employer’s part of the pension contribution, which has been fixed for the next years. In 2019, 2020 and 2021 the employer’s total pension contribution will be 31.5% and in 2022 and 2023 it will be 30.5%. Every year, ING CDC Pensioenfonds will assess whether the contribution that had been fixed for that year will be sufficient to cover the pension accrual targeted for the following year.
No cutback on the accrual rate for 2019
For the year 2019, the contribution that had been fixed at 31.5% will be sufficient to fully cover the pension accrual targeted for 2019. This means it will not be necessary to cut back the accrual rates that had been targeted for your old-age pension (1.771%) and your partner pension (1.313%).
More information
If you have any question regarding your new pension plan, please contact the Pension Desk.
