Available Premium Pension Scheme for Rotterdam Residents

Available Premium Pension Scheme for Rotterdam Residents

The available premium pension scheme (BPR) is a popular pension option in Rotterdam, particularly among port companies and SMEs. The employer contributes a fixed premium to your personal pension account. The final pension amount depends on the contributions and investment returns. In Rotterdam sectors like logistics, the employee bears the investment risk, unlike older schemes.

What does an available premium pension scheme mean for Rotterdam?

Under the BPR, your employer pays an annual fixed percentage of your salary, which is invested through a pension insurer or fund. The pension outcome varies with market performance, offering flexibility that aligns with the Future Pensions Act (since 2023). In Rotterdam, it is popular in flexible sectors such as the port and IT, where employers seek predictable costs. Employees may achieve higher returns but face risks during market downturns.

For Rotterdam residents, it offers strong potential, but always consult the Juridisch Loket Rotterdam for personalized advice on your scheme.

Legal basis and Rotterdam context

The BPR is governed by the Pension Act (PA), Articles 1 et seq. Specifically:

• Article 70 PA: Employer must contribute the premium.
• Article 119 PA: Transparency on risks is mandatory.
• Future Pensions Act (2023): Transition to premium-based schemes with lifecycle investments from 2026/2028.

Comply with the Mandatory Participation in a Pension Scheme Act (MPPSA) through collective agreements. Disputes? The District Court of Rotterdam handles pension matters via the subdistrict court. Self-employed individuals in Rotterdam can use BPR via annuities under the Income Tax Act 2001.

Differences from other schemes

The BPR differs from average salary or final salary schemes. Comparison:

More on pension build-up for Rotterdam employees.

Advantages and disadvantages for Rotterdam residents

Advantages:

• Transparency: Track your pot via annual statements, ideal for port staff.
• Flexibility: Choose investment profile, such as aggressive for young people in Rotterdam.
• Higher returns: Suited to dynamic markets like the Rotterdam economy.

Disadvantages:

• Investment risk: Drops during crises, as in 2008 for many Rotterdam residents.
• No guarantee: Pension may end up lower.
• Administration: More management for individual accounts.

Example 1: Young Rotterdam resident

Mark (35, IT specialist at a Rotterdam port company) has a BPR with 6% on €60,000 (€3,600/year). Aggressively invested: €50,000 after 10 years at 7% return. At 65: approx. €400,000 expected.

Example 2: Rotterdam entrepreneur

Sara (SME owner in Rotterdam-South) offers BPR. During a dip, the pot drops 10% but recovers. Saves costs for her business.

Rights and obligations in Rotterdam

Employee rights:

1. Annual pension overview (PA art. 114).
2. Choose investment option, often lifecycle.
3. Value transfer on job change (art. 67 PA).

Employer obligations:

• Minimum actuarial premium (70% employer).
• Risks in information document.
• Closing balance statement at end.

Employer rights: Adjust premium via collective agreement. For issues: Municipality of Rotterdam or Juridisch Loket Rotterdam for support.

FAQs for Rotterdam residents