ABP pension accrual
If you receive a salary from Leiden University, you automatically accrue pension with the Algemeen Burgerlijk Pensioenfonds (ABP). You can take out supplementary insurance at ABP for more financial freedom in your old age. In addition to a retirement pension, ABP also offers surviving dependents insurance and a work disability pension.
You accrue pension in three ways:
General Old-age Insurance Act (Algemene Ouderdomswet, AOW)Once you reach the legal AOW age, you will receive an AOW pension from the government. The AOW age is being raised step-by-step to 66 years by 2018 and 67 years by 2021. Starting from 2022, the AOW age will be linked to life expectancy. On the Social Security Bank (SVB) website you can read more about the basic pension and calculate how much AOW you will be entitled to when you reach AOW age.
ABP pensionThis is the pension you accrue via Leiden University. You are automatically registered at ABP at the start of your contract. You do not need to do anything. For more information about the retirement pension scheme see the ABP website.
Supplementary pension you take out at your own initiativeThe pension you will later be entitled to is almost certain to be lower than your current income. This is why you may wish to accrue a supplementary pension, for instance with ABP ExtraPensioen or with another bank or insurance company.
Retirement pension via ABP
On the grounds of the CAO, your employment with Leiden University ends in any case on the day you reach the legal AOW age. If you wish to take early or partial retirement, the ABP Pension Scheme allows you to retire from age 60 onwards. The longer you work, the higher the pension you will accrue. Another option is partially retirement, for a minimum of 10% of your contracted hours. You can discuss your retirement options with your P&O adviser.
Net Pension Scheme (NettoPensioenregeling)
If your pensionable income is higher than € 103,317, you will not accrue pension over the amount in excess of € 103,317. You can compensate for the lower pension accrual using ABP’s net pension scheme. This involves paying a premium from your net salary. This scheme is optional, which means that you can decide whether you wish to take part in it. For more information, see the ABP website.
Retirement pension value transfer
If you accrued pension with a former employer and wish to transfer the accrued amount to ABP, you can apply to ABP for a value transfer at the start of your employment with Leiden University.
ABP Surviving Dependents Pension
Accruing pension at ABP means that in the event of your death your partner or ex-partner and/or children are entitled to a surviving dependents pension. If you and your partner are unmarried, if you have a cohabitation agreement (samenlevingscontract) or if you were married abroad, you can register your partner at ABP. Once registered, your partner will, in the event of your death, be eligible for a surviving dependents pension. For more financial security you can also take out supplementary surviving dependents insurance via Loyalis.
ABP Work Disability Pension
In case of work disability you may be eligible for the ABP Work Disability Pension. In addition you can take out supplementary disability insurance via Loyalis.
If you wish to report a change in your work or private situation, for instance because you are getting married, expecting a child or changing employers, or if you have a question about your retirement pension, please consult the ABP website. To remain abreast of developments relating to your pension and ABP, please subscribe to ABP’s free digital newsletter.