Employer's Pension Scheme for Rotterdammers
The employer's pension scheme, the second pillar of our pension system, supplements the AOW through your employment. For Rotterdammers working for employers such as the Municipality of Rotterdam or the Port of Rotterdam Authority, you build up pension benefits with funds like ABP or sector-specific funds. This often provides, via collective labor agreements, a mandatory, stable pension income after your working life in the port city.
What does an employer's pension scheme mean for Rotterdam?
This collective provision is jointly funded by employer and employee. Your employer contributes a share of the premium, and you pay into it from your salary. It covers old-age, survivors', and sometimes disability pensions, based on your income and years of service. Unlike the flat-rate AOW, this is income-related and often mandatory under collective labor agreements in Rotterdam sectors such as logistics and public administration.
Over 90% of workers in the Netherlands, including Rotterdammers, benefit from it, for example via ABP at the Municipality of Rotterdam or PFZW in the healthcare sector.
Legal framework for employer's pensions
Regulated in the Pension Act 2007 (arts. 1-142), with the definition in art. 1(1) as 'provision for pension capital of employees'. Key articles:
- Art. 11 Pw: Registration with DNB is mandatory for administrators.
- Art. 28 Pw: Participation obligation in mandatory schemes.
- Art. 62 Pw: Rules on premiums and accrual.
From 1 January 2023, the Future Pensions Act (WtP) modernizes the system with pension contracts, more individualized rights, and mandatory indexation efforts. Transition until 2028. More info? See our article on The Dutch Pension System.
Forms of employer's pension in practice
Three types:
- Pension fund: Sector fund such as ABP for Rotterdam civil servants; risks shared collectively.
- Insured scheme: Via insurers, suitable for SMEs in Rotterdam.
- PPI: Hybrid option for companies without a fund.
Rights and obligations
Your rights as an employee
- Annual UPO with projection (art. 66 Pw).
- Value transfer on job change (art. 67 Pw).
- Indexation if the fund is sound (WtP).
Employer obligations
- Premium contributions and transfers.
- Enrolling new hires within 13 months.
- Providing data to the administrator.
Your obligations
Pay contributions and report changes, such as address updates in Rotterdam.
Examples from Rotterdam practice
Example 1: Jan served the Municipality of Rotterdam for 30 years via ABP. He receives 70% of his average salary as pension: €1,500/month plus AOW.
Example 2: In case of bankruptcy (art. 81 Pw), the fund takes over; a premium waiver fund preserves accrual.
Example 3: Mieke switches from port authority to healthcare: €50,000 pension pot transfers free of charge.
Pension pillars compared
| Pillar | Source | Funding | Accrual | Mandatory? |
|---|---|---|---|---|
| 1: AOW | Government | Income tax | Flat-rate | Yes |
| 2: Employer's Pension | Employer/employee | Premium | Income-related | Often (CAO) |
| 3: Private | Individual | Savings premium | Flexible | No |
Frequently asked questions
Do I have to participate?
Yes, if required by collective labor agreement (art. 28 Pw); opt-out possible if premium >20% (art. 29 Pw).
On job change?
Pension continues to grow; value transfer automatic since 2015. Check your UPO.
Is indexation guaranteed?
No, fund-dependent; WtP requires efforts.
Employer bankrupt?
Fund protects up to €500/week via guarantee fund.
Tips for Rotterdammers
- Check UPO on mijnpensioenoverzicht.nl.
- Add annuity pension if accrual is low.
- On divorce: divide partner pension (art. 73 Pw) via agreement.
- CAO non-compliance? Contact union or DNB; local advice at Rotterdam Legal Counter.
- For help: Rotterdam District Court or Rotterdam Legal Aid.
This scheme is crucial for your Rotterdam pension. WtP brings more flexibility. Stay informed. See also: AOW, Survivors' Pension.