SSPF and Zwitserleven develop a unique partnership for choosing between fixed or variable pensions

Partnership combines collective arrangement and full freedom of choice for retirees

Zwitserleven and Stichting Shell Pensioenfonds (SSPF) have entered into a partnership to offer (future) retirees a solid alternative in the new pension system.

The partnership makes it easier for retirees to explore the option of a fixed pension with Zwitserleven, while retaining full freedom of choice to select from other providers as well. A fixed pension is also known as a guaranteed pension, as this type of pension cannot be reduced in the future, unlike a variable pension. However, a variable pension can increase when results are positive. This unique partnership addresses a new challenge faced by many pension funds: “How can we make it easier for participants who prefer a fixed pension income to choose from the many options available with insurers?”

Retirees are offered a new choice

With the transition to the Future Pensions Act, the Flexible Contribution Scheme (FPR) has become one of the pension formats chosen by Shell. Under the FPR, a fund does not offer a fixed pension but provides a variable pension where the amount is not predetermined. Retirees who prefer a fixed pension income can then turn to insurers. However, no matter how well-informed a retiree may be about this possibility, it is an entirely different matter to locate insurers, request offers, compare them, and make a suitable choice between a variable or fixed pension. SSPF believes it is important for retirees to be carefully guided in making their pension choice. This is why retirees are not only informed but also supported in understanding their possible options, allowing them to determine what best suits their needs.

Making the route to a fixed pension easier together

With this partnership, retirees who are interested in a fixed pension can receive an offer from Zwitserleven based on collective rates. As a result, SSPF retirees are expected to receive a better offer for a fixed pension than they would if they approached the market individually. Retirees retain full control: they first receive an indication and can then proceed to choose Zwitserleven's offer in the next step, but they are also always free to select another insurer. This approach combines the advantages of a collectively organized offer and a simplified process for participants with individual freedom of choice.

Guidance doesn't stop at informing

With this unique approach, SSPF and Zwitserleven respond to an issue faced by more pension funds transitioning to an FPR. By organizing guidance together with an insurer, SSPF makes the route to a fixed pension simpler and more transparent for retirees. Meanwhile, freedom of choice remains exactly where it belongs: with the retiree.