Welkom bij Pensioenfonds <br> Ernst & Young

Welcome to Pensioenfonds Ernst & Young

The accrual percentage is the percentage of the pension base (the pensionable salary minus the deductible) that you annually accrue. 
 

Pension funds use the actuarial rate of interest to calculate the value of their future obligations. The actuarial rate of interest is published monthly by DNB.
 

Annuities are periodic benefits from the annuity insurance. The benefits are paid to the policy holder for a specific period of time or for the duration of their life, as long as they still live. 
 

The government provides ANW benefits (Algemene Nabestaandenwet, Surviving Dependants Act) to surviving dependants. Your partner may be entitled to receive these benefits in addition to our benefits after you pass away. You must meet certain conditions in order to qualify for these benefits. You can find more information on www.svb.nl

Pensioenfonds Ernst & Young has arranged a supplementary insurance for your partner should you pass away. Your partner only receives benefits from this additional insurance if they aren't entitled to ANW benefits at the time you pass away. The benefits will stop once your partner starts receiving a state pension or if they pass away before that time. 
 

If you start a new job, you can take your accrued pension with you to your new pension administrator. This is called an asset transfer. De asset transfer is converted into additional pension by the new pension administrator. 
 

In order to accrue pension, contributions are paid. The same percentage of the annual salary is paid for every participant, regardless of how much pension you accrue. This is the average contribution. 
 

The average pay system is a type of pension scheme. In this scheme, your pension is based on your average salary during your career. The pension is accrued with the agreed percentage of the pension base (the pensionable salary minus the deductible) for every year you are employed with EY or HVG Law. If you start earning more, you will also start to accrue more pension from that moment onward. 
 

Indicates the nature of the pension agreement. The pension scheme of Pensioenfonds Ernst & Young is a benefits agreement. This means that pension benefits are determined. 
 

In a CDC scheme a participant accrues pension rights within a benefits agreement. The employer pays fixed pension contributions. If the intended accrual cannot be paid from the deposited contributions in any given year, the accrual will have to be reduced. The employer has no further obligations and doesn't need to make additional payments in case of any deficit. This means that the risk of possible deficits is for the participant.
 

Ernst & Young Pension Fund became a closed pension fund on 1 July 2018. This means that employer not longer pays any premiums to our pension fund for participants in active service. In short, no pension has been accrued since then. The pension that was accrued in the past will still be managed by the pension fund. And anyone retiring will receive a pension from us.

If you have accrued a small pension amount, the pension can be commuted. You will then receive a one-time lump sum and are no longer entitled to pension benefits from of the pension administrator. You can commute your pension entitlement 2 years after you end your employment, if it's below the statutory maximum. 
 

In a contribution agreement the deposit (contributions) is fixed, but the outcome is variable. These fixed contributions are invested. There are no established agreements or ambitions as to how much pension this will eventually produce. This means a contribution agreement comes with more risk. 
 

A contribution waiver in case of disability is included in Pensioenfonds Ernst & Young's pension scheme. This means that the insurer will take care of all or part of the contributions if you become fully or partially disabled. The pension accrual will (partly) be continued.
 

If you decide to convert your pension, the value of the equalised old-age pension and the special partner's pension (to which your ex-partner is entitled after the divorce) is turned into separate old-age pension entitlements for the ex-partner.
 

As you will receive a state pension from the government, you don't have to accrue pension on all of your pensionable salary. A certain amount is deducted from this income: the deductible. This is a fixed amount which is redetermined each year.
 

DNB stands for De Nederlandsche Bank (The Dutch Bank). This body monitors pension funds, banks and insurers.
 

The employee contribution is the part of the pension contributions that the participant has to pay for their pension themselves. This is also known as the 'participant contribution' or 'individual contribution'.
 

After a divorce, the pension is equalised in accordance with the law. Equalising the pension means that the ex-partner becomes entitled to part of the old-age pension that has been accrued during the marriage.
 

An exchange is the possibility of converting the entire or part of the partner's pension you've accrued into additional old-age pension. The reverse is also possible. If you have a partner, they should agree to this.
 

Factor A indicates the pension accumulation in any given calendar year. The participant needs factor A in order to calculate the maximum amount of annuity contributions they can deduct from the income tax. We indicate the personal factor A or pension accumulation in the participant's pension statement.
 

The feasibility study is a test which is carried out over a period of 60 forecast years. The aim of this study is to provide insight into the development of the pension's purchasing power.
 

The funding ratio is the ratio between the capital of the pension fund and the value of its future pension obligations (not including future indexation). The funding ratio is an indicator of the financial health of the fund. 
 

If the pension increases in tandem with the inflation, it is index-linked. This means that the pension retains its purchasing power. 
 

Indexation is increasing the pensions in accordance with a specific index. This can be a fixed percentage, but the percentage can also be derived from the salary index or price index. The purpose of indexation is to retain the approximate value of the pension.
 

The pension which you receive starting from your retirement until you pass away. 
 

This is the pension paid to your children under 21 years old after you pass away. If the child is in college or disabled for 45% or more, the maximum age is 27. Once they reach this age, the orphan's pension is stopped. As long as you are employed at EY or HVG Law and accrued pension at Pensioenfonds Ernst & Young, an orphan’s pension was guaranteed. As the pension scheme at Pensioenfonds Ernst & Young was stopped on 1 July 2018, there is no guaranteed orphan’s pension at the pension fund.

It's possible to retire part-time. If you choose to retire part-time, you continue to work for a part of your time, and for the other part you receive pension benefits. You will still accrue pension on the number of hours that you keep working. 
 

Pensioenfonds Ernst & Young uses the following definition of a partner: the person with whom the participant is married or entered into a registered partnership. If a participant is living together with someone, the partner may also be entitled to a partner's pension. In order to qualify for this pension, your partner and you need to have concluded a civil partnership agreement and you need to have registered your partner with the pension fund. 
 

This is the pension paid to your partner after you pass away. They will receive these benefits for the duration of their life
 

Pension administrators are pension funds and insurers that implement a pension scheme. 
 

The pension base is your full-time pensionable salary minus the deductible. You accrue pension on this part of your pension. If you work part-time, the pension base is also multiplied by the part-time percentage. 
 

These are your entitlements to your pension. It's the gross amount that the (former) participant will receive in the form of periodical pension benefits once they retire. 
 

The pension scheme is laid down in the pension regulations. 
 

The pension to be achieved is the pension entitlement you can accrue if you keep participating in the pension scheme of Pensioenfonds Ernst & Young until you reach the retirement age. This is based on the information we have available at this time.
 

The pensionable salary is the salary included when calculating your pension accrual. This is 12.96 x the full-time gross monthly salary, with a maximum of €101,519. The pension yielding salary is capped, but is increased incrementally every year. In 2018, this maximum was € 105,075.

 

The policy funding ratio is the average funding ratio of the past 12 months. 
 

A pre-pension is a temporary old-age pension which allows you to retire early. Pensioenfonds Ernst & Young had a pre-pension scheme until 2007.
 

At this age you can choose to start receiving your old-age pension.
 

This is the date on which you start receiving the old-age pension.
 

The special partner's pension is a separate part of the partner's pension. This pension is for the benefit of your ex-partner. 
 

The AOW (Algemene Ouderdomswet, General Old Age Pensions Act) is a national insurance providing a state pension to people who have lived or worked in the Netherlands. You will receive a full state pension if you have always lived and worked in the Netherlands during the 50 years before you reach the state pension age. You will receive the state pension once you have reached the state pension age. Have you lived or worked abroad? In this case you've probably accrued less state pension. The government reduces your state pension with 2% for each year you've worked or lived abroad. You can find more information on www.svb.nl
 

A surviving dependant is the spouse or acknowledged partner of a deceased (former) participant or pensioner who took part in the pension scheme. 
 

A tax-efficient bank savings scheme is a tax-friendly way to accrue additional pension. You do not have to pay any taxes on the amount in this savings account, but you can only use the capital for specific purposes, such as supplementing your pension.
 

UFR stands for Ultimate Forward Rate. This is the calculation method used by DNB to calculate the actuarial rate of interest with a duration of more than 20 years. 
 

Every pension administrator is obliged to provide its participants with a Uniform Pension Overview (UPO). The statement gives you an overview of your pension entitlements. The contents of the UPO are largely the same with all pension administrators.