Your pension paid as a lump sum

In some cases, you can choose to have your pension paid as a lump sum instead of a monthly payment. This page gives you more information about having your pension paid as a lump sum. It is called ‘commutation’. 

If you would like to have your pension paid as a lump sum, you can let us know by using the ‘Account number notification’ form below. You can also go to your account in ‘Mijn StiPP Pensioen’ and enter the details. 

Account number notification form

Let us know in your 'Mijn StiPP Pensioen'

Certificate of Existence

If you live abroad, we also need a Certificate of Existence (Attestatie de Vitae) from you. Please arrange for this certificate to be completed and signed by the mayor or an official who is the closest equivalent of the Dutch civil registrar at a local council.

Certificate of Existence form

Calculation of commutation amount

The amount you receive gross as a lump sum is the value of your pension capital. Are your details changing? For example, because your former employer is still notifying changes in your employment? Then the commutation amount may be higher or lower.

Amount of the net payment

As it is a payment, StiPP has to deduct income tax and national insurance contributions and a health insurance contribution. We take no account of income tax and social insurance contributions credit in this regard. The amount remaining after these statutory deductions is the net commutation amount. As you have already reached your state pension age, you will pay a relatively low tax rate. If you do not want your pension paid as a lump sum, but prefer to receive an amount monthly for the rest of your life, please let us know immediately at stippensioen.nl/contact.

Pros and cons of commutation

The benefit of commutation is that you receive a lump sum that you are free to spend as you wish. A disadvantage is that you will not receive a lifelong pension benefit from us. Nor will your dependants have any right to dependant’s pension if you die. Even though the dependant’s pension is a small amount in your case, because your pension is below the commutation threshold.  

The commuted pension counts as part of your income for the current year. This may have consequences for allowances (for example, healthcare allowance and housing allowance) or benefits. Check this carefully before you agree to commutation of your pension.

Protecting housing allowance under the Special Cases Regulations

You will receive a letter and a notification of payment

Once we have processed your form, you will receive a letter from us telling you the amount of your pension. Shortly before you receive the commutation amount, you will receive a payment breakdown of this amount. On it you will see the final gross and net commutation amount and also all the statutory deductions. This breakdown will also show you in which bank account you will receive the amount. You will receive your commutation amount within two months of sending in the form.

Want to see how much pension you have accrued now?

Level of the commutation threshold

The commutation threshold is determined annually by the government. For you the commutation threshold of the year in which you turned 67 applies: