Pension rights as flexible workers in the Netherlands
Know about your pension rights as flexible workers in temporary, seconded, or payroll work in the Netherlands. Who is deducting what from your salary? Just when you think everything is settled, your employer starts deducting things from your gross salary. What’s up with that? Let us assure you that you ought to pay attention to this – many people forget about the whole pension issue because it seems so far in the future, and they lose out later. Please don’t let that happen to you. Keep up.
The Netherlands has a highly rated pension system, frequently recognized as one of the world’s best by the Melbourne Mercer Global Pension Index, and it even applies to people who work in the flexible sector of the economy (temporary, seconded, or via a payroll company). Once you have worked through a temporary employment agency for 26 weeks, you start building up a pension, provided you’re 21 years or older. You can transfer your pension if you start working via another temporary employment agency.
If you are employed through Payingit International, the STiPP pension arrangement applies to your employment with us.
What does this mean?
StiPP is the pension authority that is connected with the different phases of the collective labor agreement NBBU.
During the first 26 weeks of your employment you are in Phase 1, during the 52 weeks after Phase 1 you are in Phase 2, and after 78 weeks of employment (Phase 1 and 2) you enter Phase 3.
During Phase 2, only the employer contributes a premium, called the Basic Premium. (There is no pension contribution for the first 26 weeks, Phase 1.) During Phase 3, both the employer and the employee (that would be you!) contribution will be withheld from your gross salary; this is the Plus Pension.
The percentages change every year. The current rates are on our website and the StiPP website.
Your pension with StiPP
If you are a temporary worker, payroller, or a seconded employee in the flexible employment sector, you may be accruing pension capital at StiPP. If you no longer work in the flexible employment sector, the pension capital you have accrued still belongs to you. Here are the basics you need to know.
When will you have pension capital at StiPP?
Everyone working in the flexible employment sector builds up pension capital. Money goes into your pension investment account every month. That money is invested. The money deposited and the investment proceeds together make up your pension capital. When you retire, you can use your pension capital to buy lifelong pension benefits. The amount of your pension therefore depends on the amount of money put in, the return on your investment, and the cost of buying pension benefits.
Can I cash in my pension?
If you cease to be a member, the pension capital already accrued still belongs to you. If this accrued pension works out to less than €419.35 a year, the money will be paid out as a lump sum after two years. This is referred to as commutation. If you are eligible for commutation, StiPP will send you a proposal if you live in the Netherlands. If you live abroad, you will have to apply for commutation yourself.
Note there are two conditions: your pension must be no higher than €474.11 a year (2018) and you must have left the company more than two years ago but no later than 1 January 2018.
If you stop accruing pension with StiPP after 1 January 2018, you can no longer cash in your pension capital. The cutoff is less than €474.11 a year (2018). Starting in 2019, StiPP is legally obliged to pass your accrued pension on to your next pension provider when you change jobs. This is called automatic transfer of value.
If you live abroad
Something it’s easy to overlook but should be handled regularly: put StiPP on your list to notify when you change addresses or move. They are obliged to keep you informed about your pension. Twenty or thirty years go by faster than you think, and you want to receive information from them.