With StiPP you will receive a variable benefit as standard. We always invest your pension with little risk. And there is a reserve that is used to absorb reductions in your pension. However, your pension can change every year. This depends on investment results, life expectancy, interest and any distribution from the reserve.
How much can my pension be lower or higher?
If the investment results are positive, your pension will increase. If the results are negative, we will supplement your pension from our reserve. This way, your pension will remain the same as that of the previous year. Your pension benefit is always fixed for one year. If your pension benefit increases or decreases, you will always hear this at least 1 month in advance. Your pension can change for the first time in April 2027.
Are you retiring? The information you receive from us also includes an Explanatory Note on fixed or variable pension. This shows your pension in three scenarios over a longer period of time. It shows you how high your pension is if things go well and if things go badly.
Why does StiPP only offer a variable pension with little risk?
There are a number of reasons for this:
- We asked participants about their preferences and many opt for this pension.
- This pension can rise in line with prices, unlike a fixed pension.
- Our reserve makes the chance of reductions small.
- We want stability and a variable pension with little risk gives that.
- If the pension were more risky, more of your pension capital would go to the reserve. As a result, you start with a lower pension.
Why does StiPP have a reserve?
We have a reserve for setbacks. This will keep your pension as similar as possible. When the new pension scheme is transferred to the new pension scheme on 1 January 2026, the reserve will be filled with money. This money is invested. Are pensions actually going down? Then we first see if we can make up the difference with money from the reserve. Rules have been laid down for this. Are the investment results good? Then the money in the reserve grows again. Does the reserve exceed a maximum amount stated in the rules? Then this money will be used to increase pensions even more.
The reserve will be filled on 1 January 2026 with money that we already have to keep as a reserve in the current scheme. After that, the reserve is filled with money from participants who are retiring. When you retire, we put a small part of your pension capital in the reserve. In this way, everyone contributes something.