What is purchase of pension upon decease?
You accrue a pension capital in your pension scheme at Zwitserleven. If you are employed with an employer who has the pension scheme administered by Zwitserleven and you have the Zwitserleven Pensioen, a partner’s and orphan’s pension are usually also insured for you. You can see whether this is the case on your participant portal on the My covers page. The insurance policies for the partner’s and orphan’s pension are administered by our risk insurer (elipsLife).
If you pass away before your retirement date, elipsLife will pay the insured partner’s and/or orphan’s pension to your partner* and/or child(ren). We use the capital you have accrued to supplement the partner’s and/or orphan’s pension. The government has determined through tax rules how much money your partner and/or child(ren) may receive as a pension at the moment of your decease. If the insured partner’s and/or orphan’s pension is lower than this maximum, we may use the accrued capital to increase these insured pensions.
How we use the accrued capital depends on the situation and we will explain below.
Is your pension capital less than € 10,000?
A. Were you employed by an employer who has the pension scheme administered by Zwitserleven at the time of your decease Zwitserleven and did you have the Zwitserleven Pensioen? Then your pension capital will be used to increase the pensions to be paid by elipsLife. Your partner and/or children then have no choice.
B. At the time of your decease, were you no longer employed by an employer who has the pension scheme administered by Zwitserleven? Then we pay out the capital in once. We take into account the tax that must be paid on this. Your partner and/or children then have no choice.
Is your pension capital more than or equal to € 10,000?
Then your partner or children do have a choice.
As a standard we make an offer for your partner and/or children. If your relatives agree to the offer, Zwitserleven will use your capital for a supplementary partner’s and/or orphan’s pension. The amount depends on your accrued capital and the rates (including interest) of Zwitserleven at the time of decease.
Your partner and/or child(ren) may also choose a different insurer. If they wish this, they must request an offer from the insurer of their choice. And compare this offer with Zwitserleven’s offer.
Your relatives also have the option of using the capital to purchase an extra partner’s pension, an extra temporary partner’s pension or an extra orphan’s pension.
For whom is purchase of pension upon decease intended?
Purchasing a pension upon decease is intended for your partner and/or child(ren) if you pass away before your retirement date.
- If your accrued pension capital with Zwitserleven is less than € 10,000, your partner and/or children cannot make choices when purchasing a pension.
- If your accrued pension capital with Zwitserleven is more than or equal to € 10,000, your partner and/or children can make choices when purchasing a pension.
In your pension regulations you can see who is considered a partner according to your pension scheme. You will also find who is considered a child there. You can find the pension regulations on your participant portal under My documents.
Why purchase pension upon decease?
Pros
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Your partner and/or child(ren) receive an additional benefit on top of the insured partner’s and orphan’s pension. They can use this benefit to pay household expenses, rent or mortgage, study, healthcare costs and so on.
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If the choice is a temporary partner’s pension, your partner will have more money available for a temporary period after your decease. As a result, your partner will have a higher income in the first years after your decease. Later on, your partner’s income will decrease.
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After your decease your accrued capital will not go to Zwitserleven if you have a partner and/or child(ren).
Cons
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Benefits and allowances from the government that your partner and/or child(ren) receive may be reduced. Due to the fact that your partner and/or children receive (temporary) extra income.
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If, according to the tax rules, there is insufficient room to increase the insured partner’s and orphan’s pension, the part of the accrued capital that cannot be used remains at Zwitserleven. In that case, we may not distribute this capital to your relatives or other heirs. We distribute this capital among all other participants within the Zwitserleven Pensioen.
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If you do not have a partner and child(ren), the accrued capital remains at Zwitserleven. In that case, we may not distribute it to heirs. We distribute your capital among all other participants within the Zwitserleven Pensioen.
When is purchasing a pension upon decease suitable?
If you have a partner and/or children at the moment of your decease before your retirement date, purchasing a pension upon decease is suitable. However, according to the tax rules, there must be room for purchasing extra partner’s and/or orphan’s pension.
When is purchasing a pension upon decease suitable?
If you have a partner and/or children at the moment of your decease before your retirement date, purchasing a pension upon decease is suitable. However, according to the tax rules, there must be room for purchasing extra partner’s and/or orphan’s pension.
What alternatives are there?
If your accrued capital is more than € 10,000, Zwitserleven will make an offer for extra partner’s and/or orphan’s pension. Your partner and/or child(ren) can choose to request an offer from another insurer.
Note: When purchasing from another insurer, the rates and conditions of the other insurer apply. If you live abroad, it is sometimes difficult to purchase your pension from another insurer.
How do you arrange purchase of pension upon decease?
On your participant portal you can see in the My details section whether your partner’s details are known to us. If not, you can pass on your partner’s details to us via your participant portal in the My changes section. You do not have to provide the details of your child(ren).
If we do not have any details about your partner, we will send a letter to your home address after your decease. In this letter we ask any partner or child(ren) to report to us. So that we can then inform them about the partner’s and/or orphan’s pension. And we can send you an offer for a survivor’s pension if your pension capital is more than or equal to € 10,000.
If we do have your partner’s details, we will inform your partner about the partner’s and orphan’s pension. We will then send your partner and/or children an offer for the purchase of a pension. We then also point out the possibility of requesting offers from other insurers. If you do not make use of the option to purchase the survivor’s pension from another insurer, the pension will be purchased from Zwitserleven.
When does the purchase of pension upon decease stop?
The option to purchase a pension upon decease ends if:
- You retire from Zwitserleven; or
- Your capital has been transferred to another organization that arranges your pension for you.
*Your partner is the person whom you:
- are married to; or
- have a registered partnership with; or
- have a long-term joint household (cohabiting).
You may have a maximum of one Partner.
A long-term joint household (cohabiting) qualifies as such if the following conditions are fulfilled: you and your partner are both not married and are not in a registered partnership with any third persons; and your partner is not related to you in the first degree; and you and your partner are registered at the same address for at least six months in the BRP (Municipal Personal Records Database). Or you and your partner can provide a notarised domestic partnership agreement.
Need advice?
We are pleased to assist you with your retirement choices. Those choices can have major financial implications. Our guidance is only about your Zwitserleven Pensioen. Whether a choice is right for you naturally depends on your entire personal situation. Now and in the future. Have you thought about asking an advisor? They can give you an overview of all your financial affairs. And help you make the most appropriate choices.