Who is entitled to a senior’s pension?
You are entitled to senior’s pension once you were paying premiums into the former APNA fund before joining APS as a participant. The maximum in pension benefits consists of 70% of the employee’s “pensionable salary”. Currently a complete pension is built up over a period of 35 employment years.
When do I receive a senior’s pension?
The senior’s pension allows you a monthly income once you have the reached the pensionable age (currently at 60). Participants are entitled to senior’s pension benefits for life. As a participant in the APS fund, you can request your senior’s pension benefits even if you continue working or return to work.
How is my pension calculated (what amount can I expect)?
Pension benefits accrual
The amount of pension benefits that a participant is entitled to is dependent on the number of years he /she worked for an organization, through which pension benefit rights were acquired. The basis for calculating pension is the average of the last two salaries the year before you request pension. This is known as the “pensionable salary”. Depending on when you started working, an allowance is made for the so-called AOV-franchise.
Persons who started working before January 1, 1998
For the first twenty (20) years of the participant’s service, 2.5% of his /her pension benefits are accumulated for every year. After that, for years 21 through 30, each year of service contributes 1.67% towards the participant’s pension benefits. A minimum of thirty years (30) of service is required in order to contribute towards the maximum in accrued pension benefits.
Persons who started working on or after January 1, 1998
For each year in service, 2% of the participant’s pension benefits are accumulated for each year. A minimum of thirty-five (35) years of service is required in order to contribute towards the maximum in accrued pension benefits.
Examples of senior’s pension benefits calculations
Example 1: Entry into the fund before January 1, 1998
Mr. X is retiring in 2012. Because he entered the fund before January 1998, his pension consists of two (2) components:
(1) APS pension and
With his 30+ years of service, Mr. X is entitled to the maximum in pension benefit, which is 70% of the pensionable salary.
The pensionable salary is calculated by averaging his annual salaries from 2010 and 2011 – the two years prior to his scheduled retirement – and subtracting the “franchise” for his retirement year.
For each of the first 20 years of service, Mr. X has accrued 2.5% of his pension benefits:
20 years x 2.5% = 50% of the pensionable salary.
Each of the following 10 years contributes 1.67% in pension benefits accrual:
10 years x 1.667% = 16.67% of the pensionable salary.
The “duurtetoeslag” makes up for the remaining 3.33% to achieve the maximum pension benefit.
How do I apply for pension?
A request for senior’s pension should be submitted three (3) months prior to reaching the pensionable age of 60, to allow for sufficient time to deal with the administrative process. A request must include the following documents:
- request form provided by APS and filled out and signed by the applicant;
- dismissal decree or letter from your employer stating that you are going on retirement;
- “uitgebreid uittreksel” issued by the census office;
- overview of salaries of the last three years;
- copy of ID.
What happens after my pension request is submitted?
After you file a request for pension benefits with APS, we will subsequently inform you of the progress of your application.
The process is completed with a confirmation notice signed by the board or management of APS. This decree document stipulates that pension has been allotted to your person. It also mentions the amount you will be receiving in pension.
You can also expect a pension slip, which is issued once a month by APS.
Once you are collecting pension, you must inform APS if you have moved to another address, if you have entered marriage or became divorced etc.
You must also provide APS with a “Attestatie de Vita” (proof of life), which can be obtained at the Census office. For persons living in St. Maarten this is required twice a year and for persons living abroad this is required four times a year.
How is payment of my pension made?
To receive your pension payment, it is important that you keep a bank account. All pensions are transferred to a bank account of your choice. The account must be one held at a local bank and in your name. If you reside in the Netherlands, you will require an ING bank account.