Welcome to PME. My pension. for members born in 1950 or later

Transcription

1 Welcome to PME My pension for members born in 1950 or later November 2015

2 Guide to this publication Important! This brochure is for members who were born in 1950 or later. Were you born before 1950? If so, please visit for more information. Keep this brochure in a safe place. This brochure is part of the welcome letter you will receive after you begin building up pension with the Metal and Electrical Engineering Pension Fund [Pensioenfonds van de Metalektro] ( PME ). This brochure explains the most important aspects of your pension scheme. You can obtain more information and review the pension scheme on our website. This welcome brochure consists of the following parts: Checklist You can use these questions to analyse your pension situation and determine whether there is any action you need to take. Main points of the 2015 pension scheme This part outlines the most important features of our pension scheme. A. Welcome to PME This part contains important information for new members of PME. Please read this carefully and see what you need to do to make sure your pension arrangements are the best they can be. B. Your pension at PME This chapter contains extensive information about our pension scheme. I In the first part, you will read about how our basic pension is arranged. What type of pension are you building up for yourself? And what arrangements have you made for any partner and children you might have? II The second part contains information about the supplemental pension schemes that you may be able to obtain on your own or through your employer. III The third part describes various situations that can affect your pension. This part also provides information about the pension arrangements you can make if certain events occur. C. Contacting PME How can you keep up to date about your pension? Who can you ask questions? And where can you find more information? You can contact us in several different ways. This chapter contains more information about how you can contact us. List of definitions The last part is a list of definitions. The definition of the words underlined in the brochure can be found in the list of definitions. 2 WELCOME TO PME my pension

3 Content Checklist Main points of the 2015 pension scheme A. Welcome to PME Would you like extra pension for your partner after your death? Would you like to transfer a pension you have built up through one or more previous employers to PME? Where can I find more information? B. Your pension at PME I. Basic pension scheme Which type of pension are you building up? Pension for yourself Pension for any partner and children you might have Pension when your membership ends II. Supplemental pension schemes ANW shortfall pension Building pension on amounts in excess of the salary threshold Building up pension on variable pay WIA top-up pension III. What should I do or what should be done if I get married, move in with someone, or enter into a registered domestic partnership? My partner and I separate or divorce? I become sick or unable to work? I lose my job? I get a new job? I take unpaid leave? I want to retire? I die? C. Contacting PME How can you keep up to date about your pension? Sign up to receive our digital newsletter Contact us through social media Participate in our Online Panel Who can I ask questions? Other information Personal appointment Will you keep us informed too? Do you have a complaint? List of definitions

4 Checklist Decisions to be made within 3 months: Will your pension be enough for your surviving dependants? You can read more about PME s ANW shortfall pension on page 14. You must register for the ANW shortfall pension within 3 months of starting your job. Decisions to be made: Do you want to transfer a previously built-up pension to PME? You can read more about pension transfers on page 7. Once a year (at least): How much pension have I built up? You can review your Uniform Pension Overview (UPO) on Mijn PME and at mijnpensioenoverzicht.nl. What are the main points of the PME pension scheme? See the overview on page 5. What risks are associated with my pension? pension build-up at a rate of less than 1.875% reduced or no indexation reduced pension benefit How will your pension retain its value? PME tries to make sure your pension increases along with prices. Read more about this on page 12. What will happen to my pension if I become unemployed or occupationally disabled (i.e. unable to work)? Read more about this on page 17. I have a new partner and will be marrying him or her/will begin co-habiting (i.e. sharing a home) with him or her. What will that mean for my pension? Read more about this on page 16. I still have questions. Where can I get answers? See page 21 for an explanation of how you can ask us questions. 4 WELCOME TO PME my pension

5 Main points of the 2015 pension scheme The PME pension scheme is briefly described below. The definitions of the underlined words can be found in the list of definitions at the back of this brochure. Pension build-up Starting on 1 January 2015 there will be a single pension scheme for the Engineering industry (i.e. the Metal and Electrical Engineering and the Metal and Engineering sectors put together). Your pension scheme is a defined benefit agreement referred to as a conditional average earnings scheme [voorwaardelijke middelloonregeling]. You build up pension on part of your salary for each year. Each year, you build up pension equal to 1.875% of your pensionable earnings [pensioengrondslag]. The standard retirement age is 67 years: this means that we assume that your pension will start when you reach age 67, but you may also retire earlier or later. You will continue building up pension until the first day of the month in which you reach Dutch State Pension retirement age ( AOW age ). If you retire before then, you will also stop building up pension on that earlier retirement date. You build up retirement pension for yourself. When you die, there will also be a partner s pension for any partner you might have, and an orphan s pension for your minor children. Your partner s pension consists of two parts: the part that you build up and the risk-based part. 1. The part that you have built up will continue to be saved for you, even if you stop working in the Metal and Engineering industry. 2. The risk-based part will only be paid to your partner if you die before reaching AOW date and are still building up pension in the Metal and Engineering sector (insurance). The mandatory basic scheme applies to all employees in the sector aged 18 and above who earn pensionable pay of no more than EUR 70,000. The top-up scheme allows employees to build up pension on pensionable pay of up to EUR 100,000. That is only possible if your employer has arranged this scheme through PME. Contribution You and your employer pay a contribution for your pension. The total contribution in 2015 is 23.6% of your pensionable earnings. You pay a maximum of 11.55%, which means your employer must pay at least 12.05%. The contribution amount is fixed for the next five years. If the contribution turns out not to be enough for full pension build-up in a particular year, and the contribution cannot be fully supplemented from the contribution equalisation fund, which is a special fund set aside for these types of situations, then the build-up rate of 1.875% will be reduced for that year. This reduced pension build-up will not be made up later. The condition is that the contribution must be enough for the annual pension build-up. What if you become occupationally disabled? You can still build up pension in that situation, and PME will then pay your part of the contribution. Indexation In principle, PME aims to have your pension increase each year in line with the cost of living. The annual increase in pensions is referred to as indexation. In view of PME s current financial position, we do not expect to be able to increase your pension in the next few years. A reduction of your pension in the near future cannot be excluded either. WELCOME TO PME my pension 5

6 A. Welcome to PME You have a new job in the Metal and Electrical Engineering sector, which means you are automatically building up pension at PME, the Metal and Electrical Engineering Industry Pension Fund. You do this together with your employer. PME handles the pension scheme for virtually all of the employers in the Metal and Electrical Engineering industry. PME in brief PME is the Metal and Electrical Engineering Industry Pension Fund. PME works for 1,259 companies and more than 144,000 members. In addition, about 165,000 pensioners receive a monthly pension benefit. Finally, PME manages the pensions for about 317,000 former members. The companies who have their pensions administered by PME range from medium-size to large companies, and from shipyards and automobile manufacturers, to semiconductor and chip manufacturers. Information for new members In this chapter, you will only find information that is important for new members, because you might have to take action in the short term. We sum up those points for you below. 1. Would you like extra pension for your partner after your death? 2. Would you like to transfer a pension you have built up through one or more previous employers to PME? 3. Where can I find more information? 1 1. Would you like extra pension for your partner after your death? Do you have a partner, and is it possible that your partner will need extra income after your death, perhaps because your partner will not receive a statutory ANW benefit after your death or because he or she will not have enough income? If so, then continue reading this section. Partner s pension, a surviving dependants pension for your partner At PME you are building up pension for yourself, so that you receive a pension benefit when you retire. But suppose you die before your partner; then we will pay a pension to your partner for his or her entire life: the partner s pension. You can see how much your partner s pension would be by visiting Mijn PME. Understanding your pension using Mijn PME You can easily log in at using your DigiD. What do I do now? Sit down with your partner and decide whether he or she will have enough income after your death. If not, then you can obtain an extra partner s pension through PME. This is known as the ANW shortfall pension. 6 WELCOME TO PME my pension

7 This scheme will ensure that your partner receives an extra benefit after you die. Please note: Your partner will only receive this extra benefit until his or her AOW date! You pay the contribution monthly out of your gross pay. You decide yourself how much of the gross annual amount you want to insure for your partner (2015: minimum: EUR 4,600 per year; maximum: EUR 14,700 per year). Request an offer for the ANW shortfall pension within 3 months! Do you want to participate in the ANW shortfall pension scheme? Ask your employer to calculate the contribution and be sure to register with PME in time. Please note that you must register within three months of starting your job. If you apply later, your request will not be immediately accepted. In that case, you will have to answer questions about your health. That may mean that you will have to pay a higher contribution or that you might not be allowed to participate in the scheme. Ask your employer to calculate your contribution using the ANW shortfall calculation module on Would you like to transfer a pension you have built up through one or more previous employers to PME? Did you build up pension while you worked for prior employers? Do you want to transfer that pension to PME? That s no problem. Continue reading this section. Pension transfer: transferring the pension you built up earlier to PME What do I do now? You can decide whether you want to transfer previously built-up pension to PME. This is referred to as a pension transfer [waardeoverdracht]. But what would be the smartest thing to do, transfer your previous pension or not? That is a choice you will have to make yourself. The following questions may help you make that choice. a. What is the financial position of your new pension fund and your old pension fund? Check the financial situation of each of the funds. A pension fund can only index your pension (= increase your pension along with prices) if it has enough money. Read the funds annual reports and check their websites for information regarding the current funding ratio and the indexation of pensions in past years. b. Which pension offers the best way for you to reach your goals? Pension funds offer different schemes. When can you retire? How much will your partner s pension be after you die if you keep your pension with your old pension fund? And how much would your partner s pension be at the new pension fund? c. Do you want to receive pension benefits from different funds? If you do not transfer your old pension to PME, then the pension benefits that are deposited in your bank account later will come from different pension funds. Maybe that is not what you want, since that can also make filing your tax return more difficult. d. Have you built up pension with the Metal and Engineering Industry Pension Fund? Were you eligible for the transition schemes there? In order to be eligible for the Conditional Extra Pension [Voorwaardelijk extra pensioen] ( VEP ) at PME as well, you will have to meet several conditions. One of these is that you must transfer your pension to PME, but there are other conditions as well. You can read more about VEP on our website and in the brochure entitled Possible Extra Pension [Mogelijk extra pensioen]. WELCOME TO PME my pension 7

8 Request a pension transfer offer Have you made your decision and have you decided to transfer your pension to PME? Apply for your pension transfer. You can apply for this online in Mijn PME, or download the application form at After you receive the offer, you can decide whether you will actually transfer your pension. We will not start the pension transfer process until you have signed the offer and sent it back to us. As from 2015 a pension transfer will also be processed after 6 months. Not all pensions can be transferred Pensions can only be transferred if both the old and new pension funds are financially healthy. An important factor for determining a fund s health is the funding ratio. If the funding ratio is less than 100%, no transfers can be made. Even in that case, you should still apply for a pension transfer. As soon as the funding ratios are high enough, your pension transfer application will be processed. We publish our funding ratio every month on Where can I find more information? Up to now, you have read a bit about (1) the ANW shortfall pension offered by PME and (2) transferring your pension. You can find more information about your pension and about PME using the following sources: a. Y ou can get more information about the pension you are building up and how much that costs in Part B of Your pension at PME [Uw pensioen bij PME]. b. Visit our website at where you will find everything you want to know about your pension and PME. c. You can review your own pension in Mijn PME. Using your DigiD, you can log in through our website or directly through d. Subscribe to the digital newsletter for employees. This newsletter is issued every quarter, or more often if there is news. You can register for the newsletter in Mijn PME or through the website. e. PME has a Twitter account and a Facebook page. We would be pleased to have you contact us through these two online media. f. Because PME very much appreciates your opinion about your pension and our communication with you, we encourage you to register for the Online Panel on our website. g. Do you have any questions? You can contact our Customer Service Desk by sending an to servicedesk@metalektropensioen.nl or by calling us on +31 (0) The Customer Service Desk is available from Monday to Thursday from 8 a.m. to 6 p.m. and on Friday from 8 a.m. to 5 p.m. h. Would you like to make a personal appointment to discuss your pension? You can make an appointment with a pension consultant. The contact information for the consultant in your region is listed on page 22 and 23, and on 8 WELCOME TO PME my pension

9 B. Your pension at PME New pension scheme in 2015 The PME pension scheme was changed with effect from 1 January This had to be done in order to strengthen pensions against negative future developments, to comply with new laws, and to protect the pensions as much as possible against future fluctuations on the financial markets. The social partners, represented by employers and employees in the engineering sector, were successful in arriving at a new, thorough collective scheme. This scheme is virtually the same throughout the sector, meaning that it applies in both the Metal and Electrical Engineering sector and the Metal and Engineering sector. I. Basic pension scheme PME has a basic pension scheme and supplemental schemes (see Chapter II). The basic pension is the same for everyone. You are automatically a member of that scheme if you work in the Metal and Electrical Engineering industry. 1. Which type of pension are you building up? Through your employer, you will build up a retirement pension at PME, as well as a pension for any partner and children you might have, until your AOW date. But what will your total income be if you retire on your AOW date? Income you have saved yourself PME pension State Pension (AOW) WELCOME TO PME my pension 9

10 a. State Pension benefit ( AOW benefit ) (through the government) The basic pension is the AOW pension, which you will receive from the government. You will build up AOW pension until you reach AOW age. You will build up pension as long as you live in the Netherlands. Visit to determine how much your AOW benefit will be. You will receive your AOW benefit every month for the rest of your life once you reach AOW age. When will you receive an AOW benefit? And how much will that be? Visit b. PME pension You build up pension at PME through your employer. You will start receiving this pension benefit when you retire, and you will receive it every month as long as you live. How much pension benefit will you receive in future? It is useful to have an overview of what your total income will be after you retire. You can log in to with your DigiD. Here you can see how much your future income will be. You will be able to see how much pension benefit you will receive from PME and any other pension funds and insurers. You will also be able to see how much AOW benefit you will receive from the government. c. Income you have saved yourself Finally, it is possible for you to save for extra income after your retirement. You can do this by saving money in the bank or by buying an annuity. 2. Pension for yourself Through PME, you build up retirement pension for your future benefit. The retirement pension is the benefit that you will receive every month from PME after you retire. You will receive this retirement pension for the rest of your life. Your PME retirement pension is a supplement to the AOW benefit you will receive from the government. How much retirement pension will I receive in future? Every year that you work, you build up pension. This means that the amount of pension benefit you will receive depends on how many years you have built up pension at PME. The amount of your pension will also depend on the amount of your salary and the number of hours you work. The more you earn, the higher the contribution you and your employer pay and the more pension you build up. Do you want more information about your own pension? Each year you receive a Uniform Pension Overview (UPO) that shows how much pension you have built up. You can also review your pension online through Mijn PME whenever you want. Download your UPO or apply online for a pension transfer. You can use the PME Pension Planner to make various pension calculations. Log in at using your DigiD. How does building up a pension work? Because you will also receive an AOW benefit in future, you do not need to build up pension on the full amount of your pensionable pay. This is why part of your pay referred to as the state pension offset [ franchise ] is deducted from your pensionable pay. 10 WELCOME TO PME my pension

11 Your pensionable pay, less the state pension offset, is referred to as your pensionable earnings. The pensionable earnings are the part of your salary on which you build up pension. In 2015 you will build up pension equal to 1.875% of your pensionable earnings. Through the basic scheme, you can build up pension on pensionable pay of up to EUR 70,000. You can only build up pension on the portion of your pay that is between EUR 70,000 and the maximum of EUR 100,000 through the supplemental pension scheme Building pension on amounts over the salary threshold. Your employer must have registered for this scheme with PME. The law no longer allows pension to be built up on the portion of your pay that exceeds EUR 100,000. Example of pension build-up at PME Annual salary EUR 37,584 Less: state pension offset EUR 15,304 - pensionable earnings EUR 22,280 Build-up rate x 1.875% Pension built up per year (gross) EUR How much does it cost to build up pension? Each month, an amount is set aside for your pension: the pension contribution. The amount of pension contribution you and your employer pay depends on the amount of your pensionable pay. For 2015, the total contribution is 23.6% of your pensionable earnings. In 2015, you will pay a maximum of 11.55%, which means your employer must pay at least 12.05%. Your employer withholds your contribution every month from your gross pay. You can look at your pay slip to see exactly what you are paying. The total contribution has been fixed for the years 2015 through The contribution will remain the same for those years, which means that it will not be increased or decreased in the meantime. - If the amount in contribution paid is more than the amount needed to build up pension of 1.875% per year, then the overpaid contributions will be put into the contribution equalisation fund that was established on 1 January If the contribution paid is lower than the amount needed, then the pension buildup rate may need to be decreased. That will be the case if there is no money (or not enough money) in the contribution equalisation fund. If the pension build-up rate is decreased for a particular year, that shortage will not be made up later. Your own responsibility and risks Even though your pension at PME has been carefully arranged, it is still wise to review your pension every now and then. In fact, it is your responsibility to find out how much your future pension benefit will be and to make sure that it will meet your needs. Unfortunately, this is not as easy as it sounds. PME will assist you as much as possible in accomplishing this. Risks The pension you receive when you retire could be higher or lower than the amount stated on your Uniform Pension Overview (UPO). This may be the result of changes to the pension scheme, the fund s financial position, your personal situation, or your work situation. These may be changes over which you have no control. WELCOME TO PME my pension 11

12 Will your pension retain its value? In principle, PME aims to have your pension increase each year in line with the cost of living. The annual increase in pensions is referred to as indexation. In view of PME s current financial position, we do not expect to be able to increase your pension in the next few years. A reduction of your pension in the near future cannot be excluded either. You do not pay a contribution for indexation. The increase in your pension is paid from the investment return. The indexation is conditional and depends on PME s financial position. Stricter rules on indexation have been in force since 1 January Full or partial indexation is not considered until the policy funding ratio* is at least 110% and the other statutory conditions have been met. No indexation can be granted below that level. * the average funding ratio over the past twelve months. Exceptional circumstances In view of PME s financial position, a recovery plan is in force. This plan (of 30 June 2015) contains the measures PME is taking to improve the fund s financial position. The Dutch Central Bank s interest rate adjustment of 15 July 2015 has not yet been incorporated into the recovery plan. You can download the recovery plan and the annual evaluations at or request them free of charge from PME. Visit our website for more information about the recovery plan and the latest funding ratio. 3. Pension for any partner and children you might have You are not just building up retirement pension for yourself. After you die, PME will pay a partner s pension to any partner you might have, and an orphan s pension to your minor children. The partner s pension will be paid to your partner for the rest of his or her life, starting on the first day of the month in which you die. Your partner will only receive this pension if you are married, have entered into a registered domestic partnership, or have signed a co-habitation contract [samenlevingscontract] with your partner. You can visit our website to read more about the conditions that apply to co-habitation contracts. Did you get married (or remarried) or begin living with someone after you retired? If so, your partner will not be eligible for the partner s pension. How high is the partner s pension amount? The partner s pension consists of two parts: - 50% of your retirement pension is built up as a partner s pension. That is your own money. When you retire, you can exchange this money for more retirement pension. You might choose to do this, for example, if your partner has enough income of his or her own or if you do not have a partner (or no longer have a partner). - The remaining part, 20% of the retirement pension, is a risk insurance that lapses either when you retire or when you stop building up pension, such as would be the case if you started working outside the engineering industry. 12 WELCOME TO PME my pension

13 What benefit will your partner receive after your death? - If you are still building up pension at PME at the time of your death, your partner will receive a total of 70% (50% built up + 20% risk) of the pension you can achieve. - If you are no longer building up pension at PME at the time of your death, then your partner will receive 50% of the retirement pension you have built up, or the partner s pension that has been built up. Orphan s pension, a benefit for your children after your death Do you have minor children? If so, they will receive a benefit from PME upon your death. This is referred to as an orphan s pension. After your death, your children will receive a benefit until they reach age 18. They will only continue to receive a benefit after that age if they are studying, in which case they may receive a benefit until they reach a maximum age of 27. How high is the orphan s pension? The amount of the orphan s pension will depend on when you die. - You are working in the Metal and Electrical Engineering industry at the time of your death. The amount of orphan s pension your child will receive is 14% of the retirement pension you can achieve. The amount of the retirement pension to be achieved is the amount that you will receive if you continue building up pension at PME until your AOW date. - You are already retired or not working in the Metal and Electrical Engineering industry at the time of your death The amount of orphan s pension your child will receive is 14% of the retirement pension you have built up. In both cases, children who lose both parents will receive a double benefit. This partner s pension scheme will apply starting in Did you build up pension before 2015? If so, your partner s pension may be lower. You can see the exact amount of the partner s and orphan s pension in Mijn PME or on your UPO. 4. Pension when your membership ends Your membership of PME will stop in the following cases: - you leave your job and are no longer building up pension at PME - you reach AOW age The retirement pension that you build up until the end of your membership will be saved for you. The partner s pension you have built up will also be saved, but the risk portion will lapse. WELCOME TO PME my pension 13

14 II. Supplemental pension schemes In addition to the basic pension scheme through which you build up retirement pension and partner s pension, PME also offers four supplemental pension schemes. The supplemental pension schemes enable you to increase the amount in pension you build up, but this depends on what your employer has agreed with us. You can choose to participate on your own in the ANW shortfall pension scheme so that your partner will have extra pension benefit after your death. Your employer may also have automatically registered you for a supplemental scheme. You will receive a separate letter from us regarding each supplemental pension scheme you can participate in. Below, you can read more about supplemental schemes: 1. ANW shortfall pension 2. Building pension on amounts in excess of the salary threshold 3. Building up pension on variable pay 4. WIA top-up pension 1. ANW shortfall pension Do you have a partner (or a new partner)? Your partner may not receive a surviving dependants benefit (ANW) from the government after your death, perhaps because your partner does not meet the applicable conditions. Or maybe you think the partner s pension will not be enough (either with or without a possible ANW benefit). The ANW shortfall pension is intended for these situations. The ANW shortfall pension is an extra benefit for your partner after your death. It will be paid to your partner until he or she reaches AOW age. You will pay an extra contribution for the ANW shortfall pension each month. How do you arrange this? Do you want extra pension for your partner after your death? Apply to your employer for the ANW shortfall pension. Your employer can calculate your contribution using the ANW shortfall contribution calculation module on Apply for the ANW shortfall pension within three months! Make sure you inform your employer in time that you want to join the ANW shortfall scheme. Your employer must register you at PME within three months after you start your job. Did you just get married, enter into a registered domestic partnership, or sign a co-habitation contract? If so, make sure that your employer notifies PME within three months of one of these events. If you apply later, you may have to answer several questions about your health. This may mean that you will have to pay a higher contribution or that you might not be allowed to participate in the ANW shortfall scheme. 14 WELCOME TO PME my pension

15 2. Building pension on amounts in excess of the salary threshold The pensionable pay on which you build up pension in the basic pension scheme is subject to a limit, or threshold. If you earn more than the threshold salary of EUR 70,000 (in 2015), you will generally not build up pension on anything in excess of that amount. Through the Building Pension on Amounts in excess of the Salary Threshold Scheme, you can also build up your retirement and partner s pension on that part of your salary, up to a maximum of EUR 100,000. An orphan s pension is included in the policy. You do not build up any capital for this purpose. Please note that you can only participate in this scheme if your employer has arranged this scheme at PME. 3. Building up pension on variable pay You only build up pension on your fixed annual gross salary. That means that shift allowances and other variable pay do not count as part of your pensionable pay. Your employer can choose to arrange it so that you can also build up pension at PME on your variable pay. In that case, your employer determines which types of variable pay you can build up pension on. The salary you build up pension on is limited to a salary threshold of EUR 70,000. If your salary is more than the salary threshold, you will only be able to build up pension on anything over that amount if your employer has made arrangements for this through a Building Pension on Amounts in excess of the Salary Threshold Scheme (see above). Please note that you can only participate in this scheme if your employer has arranged this scheme at PME. 4. WIA top-up pension If you become occupationally disabled (i.e. unable to work), you may be eligible to receive a benefit from the government under the Work and Income (Fitness for Work) Act ( WIA benefit ). This benefit is calculated based on a maximum salary (EUR 51,976 in 2015) and depends on the degree of your occupational disability. If you earn more than the maximum salary, then your WIA benefit will be quite a bit lower than the salary you used to receive. In that case, you will lose even more income. The WIA top-up pension is a supplemental occupational disability pension that is built up on salary that exceeds the threshold of EUR 51,976. This means you lose less income. Please note that you can only participate in this scheme if your employer has arranged this scheme at PME. WELCOME TO PME my pension 15

16 III. What should I do or what should be done if 1. I get married, move in with someone, or enter into a registered domestic partnership? Are you planning to get married or enter into a registered domestic partnership? Are you planning to get married or enter into a registered domestic partnership? If you do, we will automatically be informed of your partner s personal details through the Personal Records Database [Basisregistratie Personen] ( BRP ). Are you planning to move in with someone? Your partner will only be eligible to receive a partner s pension if you have lived together for at least six months and have signed a notarial co-habitation contract. Do you want to ensure that your partner has extra income after you die? If so, you should participate in the ANW shortfall scheme. If you start living together with your partner, send us a copy of your notarial co-habitation contract. We will then put the copy of this contract in our records for the partner s pension. Do you want to participate in the ANW shortfall scheme? You can arrange this through your employer. You must do so within three months after you begin living with your partner under a co-habitation contract, or within three months of marrying or entering into a registered domestic partnership. You can find more information on our website. 2. My partner and I separate or divorce? Were you married or were you a party to a registered domestic partnership? You built up retirement pension during your relationship. Your ex-partner will be entitled to payment of half that amount when you retire. But you can also decide to allocate your retirement pension differently. That is something you decide together. After your death, ex-partner may also have a right to the partner s pension that was built up before the date you separated/divorced. This is referred to as a special partner s pension. If you and your ex-partner opt for a conversion, he or she will have no right to the special partner s pension. Your ex-partner will then obtain his or her own right to a pension which already includes the special partner s pension. If you were living together, your partner will have no right to payment of part of your retirement pension After your death, your ex-partner will only have a right to receive the portion of the partner s pension you built up prior to your date of separation/divorce. This has been the law since 1 January This is referred to as a special partner s pension. The condition for receiving this pension is that you must have lived together under the terms of a notarial co-habitation contract. Let us know that you have separated/divorced or that your registered domestic partnership has been terminated and that you want to have your retirement pension allocated. Use the form entitled Notification of separation/divorce in connection with retirement pension allocation [Mededeling van scheiding in verband met verdeling van ouderdomspensioen]. You can download this form via Would you like to know more about separation/divorce and the choices you can make? Visit our website or read the brochure entitled You and your partner are separating/ divorcing [U en uw partner gaan uit elkaar]. 16 WELCOME TO PME my pension

17 3. I become sick or unable to work? You become sick your employer will still pay your salary for two years Are you unable to work due to an illness or accident? Your employer will continue to pay all or part of your salary for two years. You will continue to build up pension during your illness. What if you have still not recovered after two years? You may be eligible for a WIA benefit (a benefit paid under the Dutch Work and Income (Fitness for Work) Act). After two years of illness: your status changes to one of occupational disability Are you fully or partially unable to work? You will continue to build up a partial pension on the part of your pay that corresponds to your occupational disability. You will not have to pay a contribution for that; PME will do that for you. We refer to this as contribution-free membership. How much pension will you continue to build up without having to pay contributions? That depends on the degree of your occupational disability. See the tables below. Please note: If you work more than your residual capacity (i.e. the percentage that you are officially able to work), the percentages may be different. Your degree of occupational disability % of the pension PME builds up for you while you receive a WIA benefit 0% - 35% 0% 35% - 45% 28% 45% - 55% 35% 55% - 65% 42% 65% - 80% 50,75% 80% or more 75% There is a maximum amount of WIA benefit you can receive if you are occupationally disabled. If you earn more than the maximum salary for which you can receive a WIA benefit, you will not receive a WIA benefit on anything you earn over that maximum. Your employer can arrange for an additional scheme for your salary that exceeds the WIA maximum salary. Ask your employer about the possibilities. Would you like to know more? Go to our website and download the brochure entitled Sick or occupationally disabled [Ziek of arbeidsongeschikt]. Request a contribution-free continuation from PME within one year of becoming occupationally disabled. Download the form entitled Continuing your pension when you are occupationally disabled [Uw pensioen voortzetten als u arbeidsongeschikt bent] from the website, fill it in, sign it, and send it to us. WELCOME TO PME my pension 17

18 Gross salary Your employer continues to pay all or part of your salary Ask PME yourself for help with building up pension, and do this within one year! WIA (or the former Occupational Disability Benefits Act [WAO]) Healthy Sick first two years, pension build-up continues Afterwards in the WIA. Pension buildup can continue at your request. 4. I lose my job? PME s continuation scheme If you lose your job, you automatically stop building up pension. You should also know that, under certain conditions, you can continue to build up pension. PME arranges this through its Voluntary Continuation Scheme. This scheme allows you to continue to build up 70% of your retirement pension (for a maximum of three years). This scheme also arranges a partner s and orphan s pension. Apply for a continuation of your pension within one year of losing your job. You can do this by filling in the form entitled Continuing your own pension when you lose your job [Voortzetten van uw eigen pensioen bij werkloosheid] to PME. You can find more information on our website and in our brochure entitled Unemployment and pension build-up [Werkloosheid en pensioenopbouw]. 5. I get a new job? This section contains information about the following situations: new job in the Metal and Electrical Engineering sector new job outside the Metal and Electrical Engineering sector start your own business or new job without a pension scheme New job in the Metal and Electrical Engineering sector Did you get a new job? Is your new employer registered with PME? If so, you will simply continue building up your pension at PME. Has your salary changed? Then the amount of pension you build up each year will be higher or lower. New job outside the Metal and Electrical Engineering sector If your new employer is not registered with PME, then you will stop building up pension at PME. You can transfer the pension you have built up to the new pension fund or insurer. Read more about this in the brochure entitled New job? Transfer your pension from PME? [Nieuwe baan? Uw pensioen weghalen bij PME?]. Apply to your new pension fund or insurer for a pension transfer within six months of starting your new job. 18 WELCOME TO PME my pension

19 New job in the Metal and Engineering Industry Is your new employer registered with PMT? Read the brochure entitled Transferring between PME and PMT [Overstap tussen PME en PMT]. Download this brochure at Your own business or new job without a pension scheme? Are you starting your own business as a sole proprietor [eenmanszaak] or general partnership [vennootschap onder firma, or VOF]? Or does your new employer not have a pension scheme? Under certain conditions, you can still continue to build up pension voluntarily at PME. You can do this for a maximum of three years. Read more about the conditions in the brochure entitled Own business or employer without a pension scheme [Eigen bedrijf of werkgever zonder pensioen]. Do you, as a director-majority shareholder of a private limited company (BV) or public limited company (NV), hold 10% more of the voting shares in that company? If so, the law does not permit you to be a member of a pension scheme administered by a pension fund. Your membership of PME cannot be continued. If you hold less than 10% of the voting shares, you can continue to build up pension for a maximum of three years. Under certain conditions, your private or public limited company can also join the fund on a voluntary basis on behalf of its employees. If you voluntarily continue to build up pension, you will pay a contribution. The contribution will be based on your last-earned gross salary when you were still a member of PME. You will pay the entire contribution if you voluntarily continue building up pension. You will pay both the employee s part and the employer s part of the contribution. You will have to submit a request to PME to voluntarily continue building up pension. You must do this within one year of the end of your membership of PME. The form can be downloaded at You can also read the brochure entitled Mijn pensioen in het kort (My pension in brief) regarding starting your own business or working at an employer who does not offer a pension scheme. 6. I take unpaid leave? As long as you are working, you will build up pension until your AOW date. If you take unpaid leave, you will stop building up pension, but you will continue to have life insurance and occupational disability insurance for the first eighteen months. Are you taking parental leave [ouderschapsverlof]? Then the situation will be different. You will continue building up retirement pension. You and your employer will pay the contribution for the hours that you are still working. PME will pay the rest. Are you taking a leave funded with your life-course savings [levensloopverlof], study leave [studieverlof] or a sabbatical? You can continue to build up pension in those cases as well, although several rules apply. You can review the conditions on the website. You cannot build up pension during a long-term care leave [zorgverlof]. 7. I want to retire? Six months before your AOW date, we will send you a notification and information about your retirement. WELCOME TO PME my pension 19

20 Various possible choices You can make various choices when you retire. Although you can retire any time after you reach age 55, you can also continue working, but only until you reach age 70. You can also choose to receive a lower or higher pension starting on your AOW date. For example, you can exchange some of your retirement pension for a higher partner s pension, or vice versa. You can make all different types of calculations using the PME Pension Planner in Mijn PME. Then you can immediately see what those choices will mean for your pension. Have you made your choice? You can request a pension proposal via Mijn PME between three and six months before your desired retirement date. You can find more information about your pension on our website and in the brochure entitled My Pension [Mijn pensioen]. 8. I die? If you die, your surviving partner can receive a benefit from PME. This benefit is referred to as a partner s pension. Your children can receive an orphan s pension. Do you live with your partner? That partner may also receive a partner s pension if you meet certain conditions. You can review these conditions on page 12. PME will be automatically notified of your death via your municipality. Your surviving dependants will receive a form they can use to apply for a partner s and/or orphan s pension. For your partner You can see how much your partner s pension would be by visiting Mijn PME. There are two situations that determine the amount of the partner s pension. a. You die while still employed in the Metal and Electrical Engineering sector (and are still a member of PME). Your partner will receive approximately 70% of the retirement pension you would have built up had you continued to work until your AOW date. b. You die after you stop working in the Metal and Electrical Engineering sector (and are no longer a member of PME) Your partner will receive approximately 50% of the retirement pension you actually built up. If you were a member of the ANW shortfall scheme, your partner will receive extra pension upon your death until he/she reaches AOW age. Read more about this on page 14. For your children PME can pay an orphan s pension to your children after you die. Your child will receive the orphan s pension until he/she reaches the age of 18. Children who are registered students will receive the orphan s pension until they reach the age of 27. a. What if you die while you are still building up pension at PME? Your child will receive 14% of the retirement pension that you would have built up at PME until your AOW date. b. What if you are no longer a member of PME when you die? Each of your children will receive an orphan s pension equal to 14% of the retirement pension you actually built up. Children who lose both parents receive a double benefit amount. 20 WELCOME TO PME my pension

21 C. Contacting PME 1. How can you keep up to date about your pension? Visit our website at There you will find all of the information you need about your pension at PME. Understanding your pension using Mijn PME In Mijn PME you can review your personal details, subscribe to our digital newsletter, and apply for a pension transfer. You can use the PME Pension Planner to calculate your pension and determine what effect various pension decisions will have on your pension. You can easily log in at using your DigiD. 2. Sign up to receive our digital newsletter If you want to be sure you do not miss any news regarding your pension, sign up for our digital newsletter. You will always be up to date on current developments and changes relating to the PME pension. The newsletter is issued every quarter, or more often if there is news. If you want to receive the newsletter, register via Mijn PME or our website. 3. Contact us through social media Follow the latest news about PME and contact us via social media: Facebook: Twitter: 4. Participate in our Online Panel If you would like to contribute ideas and your opinion about PME and our communication, then register for our online panel on As a member of this panel, you will receive an every 2 to 3 months asking you to fill in a questionnaire. Each questionnaire will take approximately 5 to 10 minutes to fill in. You can decide each time whether or not you wish to fill in a questionnaire, and you can cancel your panel membership at any time. All answers we receive are processed anonymously by a research firm. 5. Who can I ask questions? Do you prefer personal contact? That is possible as well. Our Service Desk is ready to answer any of your questions and/or provide you with information. They are available by telephone on +31 (0) or via servicedesk@metalektropensioen.nl. WELCOME TO PME my pension 21