With an i-Pensioen scheme, your employees accrue a guaranteed pension. They do not bear any investment risk.
We use Yield Correction to determine the contribution. For this, we look at the market interest rate and the average age of your employees. We use the average of the 15, 20, 25, 30, 35, 40 and 50 year Euro Swap mid yields as a proxy for the market interest rate. This results in a mark-up or discount on the contribution. You pay a higher or lower contribution by using Yield Correction.
Fixed or variable?
You decide how often we will determine the mark-up or discount to the contribution. You do this by choosing either Fixed or Variable Yield Correction.
We set the Fixed Yield Correction at the start of the administration agreement. The mark-up or discount to the contribution then applies for the entire term of your contract. The contribution is not affected by fluctuations in market interest rates. The advantage for you is that if the market interest rate falls, your contribution will not increase as a result. Fixed Yield Correction is suitable for you if you believe that market interest rates will fall during the term of your contract, and if fixed costs will benefit you financially.
N.B.: If market interest rates rise, you will not benefit from a reduction in the contributions for your pension scheme.
We can however adjust the Fixed Yield Correction if there are significant changes in the participant base. Or if the scheme is changed, for example to increase the standard retirement age.
We set the Variable Yield Correction monthly. The mark-up or discount for your contribution changes in line with decreases or increases in the market interest rate. The advantage for you is that if the market interest rate rises, your contribution will be lower.
But also: if the market interest rate falls, the contribution you pay will be higher.
This choice is suitable for you if you believe that market interest rates will rise during the term of your contract, And you can absorb an increase in the contribution when market interest rates fall.
Solvency and asset management fee
The solvency and asset management fees together amount to 0.25%. We need the solvency fee to enable us to guarantee the pensions if the insured persons live longer than expected. The management fee pays for the management of the pension assets. The solvency and asset management fee is part of Yield Correction, and is already included in the Yield Correction percentage shown in the figure.
Yield correction for Netto Pension
Do you have a defined contribution scheme for Nettopensioen for employees with a pensionable salary above the cap as well as i-Pensioen? Any partner's and orphan's pension insured in Nettopensioen are subject to the Yield Correction for the Zwitserleven Exclusief Pensioen product. Nettopensioen in addition to the i-Pensioen Middelloon or Eindloon scheme is possible with an annual i-Pensioen contribution of EUR 300,000 or more.
Need a quote or advice?
As a good employer, you want to choose a pension that is right for your business and for your employees. We have a wide range of options to suit every type of business. Such as an investment-based defined contribution pension scheme, possibly in conjunction with Nettopensioen. A complete overview of our products is available.
If you would like to know more about this or any of our other pension schemes, or would like to get specific advice on a pension scheme for your employees, contact an independent financial adviser. Zwitserleven has an excellent relationship with a large number of professional insurance advisers.