Explanation of the StiPP scheme - Employee

There are different types of pension schemes. It can therefore differ per pension provider how your pension is accrued. The most common schemes are the Defined Benefit (DB) and the Defined Contribution (DC) scheme. StiPP only offers a DC control. This scheme is also known as the defined contribution scheme. The difference between the two schemes is, for example, in who bears the risks and in the predictability of the amount of the pension benefit. The table below shows the differences between these two schemes. Below the table you can read more explanation.

DC Control	DB scheme
The pension benefit is not fixed before the retirement date and depends on investment results	The pension benefit is (reasonably) fixed before the retirement date
Investment risks are borne individually	Investment risks are shared collectively
The starting point is the contribution paid in	The starting point is a (pre-determined) pension entitlement
On the retirement date, you choose between a stable or variable pension benefit	On the retirement date, only a stable pension benefit is possible

Due to the Pension Agreement concluded in 2020, DB schemes will disappear in the future.

Explanation of DC control

This is also called a defined contribution scheme. In a DC plan, the amount of the pension participant's capital depends on the defined contribution (paid) and the investment results. Only when you retire will the amount of the (lifelong) pension benefit be determined. We explain this further on the basis of 4 phases.

Phase 1: Paying pension contributions

Your employer pays a pension contribution based on your salary. In the Plus Scheme, part of the pension contribution is deducted from your salary. The parties to the collective labor agreement determine the amount of the pension premium to be paid. For the Basic and Plus schemes, the following calculations apply to calculate the pension contribution to be paid. The deductible is the part of your salary on which you do not accrue pension and on which you therefore do not pay any contributions.

Basic regulation:
(Pensionable salary – deductible) x contribution percentage* = contribution amount
*The contribution percentage in the Basic Scheme is set at 8%.

Your employer pays this pension contribution in full.

Plus scheme:
(Pensionable salary – deductible) x contribution percentage* = contribution amount
*The contribution percentage in the Plus scheme is set at 12%.

You pay this pension contribution together with your employer, whereby^{you pay a} maximum of 1/3rd. Because StiPP is a mandatory industry-wide pension fund, an average contribution applies. This is 12%. This means that the contribution percentage to be paid is the same for everyone, regardless of his or her age.

Phase 2: The defined contribution for the participant

For each active participant, the defined contribution is added to the accrued pension capital on a monthly basis. This premium is not the premium stated in phase 1. The amount of the defined contribution depends on the pension scheme in which you participate. In the Basic Scheme, there is an age-independent defined contribution. In the Plus Scheme, the defined contribution is determined on the basis of an age-dependent graduated scale. If you are young, your capital still has a lot of time to grow. In that case, less premium will be added to your pension capital. As you get older, we pay more premium, the available premium is higher.

Basic regulation:
(Pensionable salary – offset) x defined contribution percentage* = amount added to the pension capital (=defined contribution).
* In the Basic Scheme, the percentage is independent of age and set at 7.4%

Plus scheme:
(Pensionable salary – offset) x defined contribution percentage* = amount added to the pension capital (=defined contribution).
* In the Plus scheme, the percentage depends on age (graduated scale)

Phase 3: Pension capital is invested

We invest your accrued pension capital. We invest your money, because this is expected to yield more than saving. We do this investing with an beleggingsmix. When you are young, we take more risk when investing your capital than when you are a bit older. More risk often yields more return. But also more uncertainty about the amount of your final pension. By investing less riskily when you are a little older, you can be reasonably sure of what pension you will receive when you retire.

From^{the age of} 57, you can choose to invest your pension capital with more or less risk. You can submit your choice via My StiPP Pension. For more information, click hier.

On onze website and via our e-newsletter investment results you can see what the return on investments is in your age category. We publish the results once a quarter, but the return is credited to your investment account on a monthly basis. You can find your current pension capital on Mijn StiPP Pensioen.

Phase 4: Purchases of pension on retirement date

With your pension capital, you purchase a lifelong pension benefit on your retirement date. How much annual pension you receive for your capital is determined by the purchasing factors. These are determined maandelijks . The purchasing factors depend on:
- the interest rate;
- life expectancy;
- the male/female ratio at the StiPP pension fund;
- the required buffer storage

In addition, when you retire, you can choose tussen een stabiele of variabele uitkering. With a stable pension, you know how much you will receive each month for the rest of your life. With a variable benefit, your pension capital is still invested. The amount of your benefit then depends on investment returns and can therefore change annually.

Lees hier meer over welk pensioen u koopt van uw pensioenkapitaal

Calculation examples DC control

Basic scheme

Marja is 36 years old and works as a temporary worker. Her pensionable salary is € 2,300 and the number of pensionable hours is 80. For her, the deductible is 80 x € 8.90 = € 712

Example Marja	Calculation + amount
Premium	(€2,300 – €712) x 8% = €127.04
Pension accrual	(€2,300 – €712) x 7.4% = € 117.51*

* This amount is invested. Returns are achieved on this

Marja decides to retire at^{the age of} 65. Marja has no partner and therefore only buys retirement pension. Suppose that her capital at that time is € 25,000. The purchasing factor for old-age pension alone at 65 at the time she retires is 22,509. This means that she receives an annual lifelong pension of € 25,000 : 22.509 = € 1,110.67 gross.

Example Jan	Calculation + amount
Premium	(€3,600 – €1,157) x 12% = € 293.16
Pension accrual	(€3,600 - €1,157) x 6.4%* = €156.35**

Do you want to know the amount of your pension capital?

Every year between May and September, you will receive a pensioenoverzicht on which you can see the amount of your accrued pension capital and the expected pension benefit. In addition, you will always find the current state of affairs on Mijn StiPP Pensioen .