Reimbursement of pension contributions from the Netherlands - StiPPauthor:
Have you worked in the Netherlands on a temporary contract and are wondering if you will be entitled to a pension for this in the future? And if so, in what amount? If you are looking for answers to these questions, read our post today. Find out what the StiPP in the Netherlands is, what the return of pension contributions from the Netherlands looks like and who is entitled to them.
StiPP - the Netherlands
Before we get into the nitty-gritty of how to get your pension contributions back from the Netherlands, we need to answer what StiPP is. The Stichting Pensioenfonds voor Personeelsdiensten - for that is the full name - is a specially established pension fund that was created under the collective agreement that governs the conditions of temporary work in the Netherlands.
Put simply, it is a pension plan that applies to people employed through employment agencies. Such individuals include temporary workers.
For whom is the StiPP pension in the Netherlands?
Who can benefit from the StiPP pension fund? The Netherlands is a country that clearly defines the conditions for joining this plan. The requirements include:
- he age of the employee (at least 21 years old),
- number of weeks worked for one employer (at least 26).
Meeting these two conditions makes it necessary for your employer to enroll you in the basic plan. What does this look like in practice? When you work your 26th week, your data (such as the number of hours worked or earnings) goes to the StiPP. After that, the agency where you are employed is obliged to deduct contributions to the supplemental pension, making you eligible to collect the StiPP pension.
How do you join the extended plan? This happens automatically after you have worked 52 weeks for one employer.
Is it possible to withdraw pension contributions in the Netherlands?
Many people wonder if you can withdraw pension contributions in the Netherlands. We will answer right away: yes, it is possible. StiPP is one of the plans classified as Small Pension Funds (Pensioenfonds). Current regulations state that pension contributions in the Netherlands that are accumulated in these funds can be recovered in two ways:
- in the form of a one-time payment of the entire amount - provided that at least two years have passed since the last employment in the Netherlands,
- in the form of a monthly allowance (for life) - the condition is that you reach retirement age (67).
Redemption of pension in the Netherlands from SkiPP - on what basis?
You already know that buying out a pension from the Netherlands is possible. At this point, it is worth zooming in on what basis you can recover your claim. This happens through the so-called pension capital in the StiPP. This one is accumulated by making monthly contributions to the pension account. The funds thus set aside are then invested. Such capital, together with the profit, makes up the retirement capital. When you reach retirement age, you are entitled to a lifetime payout, as you learned in the previous paragraph. The amount of the pension depends on the amount invested, the profit and the cost of redeeming the pension rights.
StiPP withdrawal - how to recover pension contributions from the Netherlands?
What does the withdrawal of StiPP funds look like? Return of pension contributions from the Netherlands in this case is possible when two conditions are met:
- when pension contributions from the Netherlands (total pension capital) do not exceed €503.24 gross per year,
- 2 years have passed since the expiration of the employment contract.
What you should know: if you live outside the Netherlands, you should apply for early payment of your pension capital. Otherwise, it will not be possible to return your Dutch pension faster.
The situation is different for those living in the country, in which case the StiPP itself will offer an early payment of the claim.
How to check the StiPP contributions?
Is it possible to see the accumulated contributions in the pension account? Yes. How to check StiPP contributions? This can be done in two ways.
- By reviewing the so-called pension statement, which is sent out once a year by the StiPP.
- By visiting the website mijnpensioenoverzicht.nl. It is worth knowing that the data on the site is updated several times during the year.
Importantly: if you are no longer working as a temporary or seconded employee, you should receive a pension statement once every five years (either electronically or in the form of a letter to the address you provided in advance).
How much does it cost to buy a pension in the Netherlands from StiPP?
Many people also wonder how much it costs to buy a pension in the Netherlands. There is, of course, some way to pay for it - Dutch pension funds, after all, incur fixed administrative costs, as well as investment management costs.
What does this look like in practice? StiPP uses an averaged contribution, that is, one that is identical for everyone. These costs are shared by each pension fund participant from the premiums paid (employee and employer). So what are the costs? The premium that is invested for your pension capital is fixed - it is 4.2%. No additional costs are deducted from this amount.
BPL in the Netherlands - what is it?
When talking about StiPP, you will also often hear about BPL in the Netherlands. What is it? It is a Dutch pension fund for employees working for companies in the agricultural and organic sectors. Bedrijfspensioenfonds voor Landbouw is included in the so-called Small Pension Fund, which also includes:
- Flexsecurity pensioen,
BPL's pension fund is primarily involved in implementing various pension regulations, as well as managing pension funds. The fund includes more than 21,000 affiliated employers with a total of more than 90,000 participants.
After how many years can a pension be granted in the Netherlands?
After how many years can a pension from the Netherlands be granted? Current regulations do not specify a specific number of years that streamline for the granting of this benefit. Importantly, however, for each year worked, the employee receives 2% of the basic pension from the Netherlands. The full benefit is received after 50 years (if subject to all social insurance, of course).
Due to the fact that it is practically impossible for foreigners to work that many years, it is possible to redeem them. How to reclaim years of work from the Netherlands? You need to make the appropriate application to the pension fund (within 10 years from the date of starting work). The amount is calculated individually based on, among other things, age, the amount of pension contributions paid, as well as the length of the insurance period.