Pension Conversion upon Divorce in Rotterdam

Pension Conversion upon Divorce in Rotterdam

In divorces in Rotterdam, pension conversion is a smart option for dividing accrued pensions. This involves converting a portion of one partner's pension into an independent pension right for the ex-partner. This way, the ex receives a payout independent of the other's lifespan and builds their own pension pot. This is often agreed in settlement agreements at the District Court of Rotterdam.

What Does Pension Conversion Mean for Residents of Rotterdam?

Pension conversion means that the pension fund or insurer converts a portion of the participant's old-age pension (often the partner with more pension) into an independent claim for the other. After conversion, the ex's pension stands alone from the former partner. This applies to pensions accrued during the marriage or partnership in the port city.

Partners in Rotterdam must consciously opt for conversion; it is not automatic. Otherwise, the default pension equalization applies, where the payout only starts upon the ex's retirement and is tied to their lifespan.

Legal Basis for Pension Conversion

Pension conversion is governed by the Pension Equalization upon Divorce Act (WPB Act), specifically Article 1, paragraph 1 and Article 62 et seq. of the Pension Act. Since 2000 (divorces after January 1, 2001), residents of Rotterdam can record this in a settlement agreement at the District Court of Rotterdam.

• Article 1 WPB Act: Describes conversion as the transformation of pension rights.
• Article 80 WPB Act: Provides the option to choose conversion over equalization.
• Pension Act Article 62: Requires pension providers to execute conversion upon joint request.

For older divorces (before 2001), transitional rules from the Act on the Economic Position of the Spouse (WEVH Act) apply, with limited conversion options.

Differences Between Conversion and Equalization

An overview of the key differences:

Conditions for Pension Conversion in Rotterdam

Conversion is possible if:

1. Both ex-partners consent in writing in the settlement agreement.
2. The pension falls under the WPB Act (accrued during marriage).
3. The provider supports it (almost always the case).
4. There is a deed of division, drawn up by a notary or lawyer at the District Court of Rotterdam.

The lawyer sends the deed to the fund, which acts within 6 months.

Rights and Obligations in Pension Conversion

Rights

• Independent own pension right.
• No review against new partner for payout.
• Protected against changes by ex-partner.

Obligations

• Full cooperation; otherwise equalization.
• Share costs (usually equally).
• Inform pension fund of relevant changes.

Real-Life Cases from Rotterdam

Example 1: Anna from Rotterdam-South and Bert divorce after 20 years. Bert's pension: €500/month, Anna's €200. After conversion: Bert €350, Anna own €150. Anna receives payout directly upon retirement, independent of Bert.

Example 2: Coen and Dana, both with Rotterdam funds, opt for conversion. Dana gets her own policy, secure against Coen's potential remarriage plans.

In divorces at the District Court of Rotterdam, conversion is popular for unequal life expectancies or remarriage, less so for equal pensions due to costs.

Tips for Residents of Rotterdam

• Get pension calculated: Use tools or advisors; check net benefit.
• Check partner pension: Also split; assess separately.
• Specify in settlement agreement: Record percentage and term.
• Seek advice: At Juridisch Loket Rotterdam for free help or a local family law attorney. Call for intake.
• More info: Read about Pension Equalization, Survivors' Pension Divorce and Matrimonial Property Pension.

Frequently Asked Questions