On leaving your employer you receive a letter. This tells you exactly what you can do with your accrued pension reserves:
- Option 1: you leave the built-up reserves in your previous employer's group insurance with AG Employee Benefits (= 'sleeper')
This is the default choice. If, on leaving your employer, you do not take specific steps to transfer your acquired reserves elsewhere, your contract simply remains. No new premiums are paid in, but you retain the advantageous interest rate on the already accrued reserves.
When you reach pension age, this accrued amount will be paid out to you.
Careful, on leaving your employer, in some cases the death in service coverage of the life insurance stops. If you do not make an express choice or leave your reserves in your former employer's scheme (option 1), there is a danger that your beneficiaries will have no reserves paid out to them if you die before pension age. Your letter will mention whether or not the death in service cover remains. Again, check carefully with your personnel department (and also examine option 2).
- Option 2: you keep the accrued reserves in your former employer's group insurance with AG Employee Benefits, and you choose a death in service cover whereby the acquired reserves are paid out in the event of early death (= 'sleeper' with death in service cover)
This option follows the principle of option 1, but with death in service now included. If you die before you reach retirement age, the amount of the acquired reserves will be paid to your beneficiary(-ies). This also means that the cost of this coverage will reduce the amount paid out at retirement age.
If you choose this option, there are certain limits to be respected.
- After receiving your letter, you have 30 days to choose this option. If you make no choice, your accrued reserves remain insured in option 1.
- After these 30 days, you have a further period of 11 months in which to choose this option.
Once the period of 11 months has expired, you can no longer select option 2. After this you can also choose, up to pension age, to transfer your accrued reserves to a hosting structure at AG Employee Benefits (option 3), your new employer's pension institution (option 4) or a pension institution that limits the costs and distributes the total profits among affiliates (option 5).
- Option 3: you transfer the accrued reserves to a hosting structure at AG Employee Benefits
The amount of your complementary pension is moved to a 'hosting structure', which means that it is no longer managed according to the rules of your previous employer's pension scheme. You do, however, retain your interest guarantee.
Important: the 'death in service' guarantee continues to apply. If you die before your retirement age, the accrued reserves will be paid to your beneficiary(-ies).
- Option 4: you transfer the accrued reserves to your new employer's pension institution (e.g. AG Employee Benefits)
If your new employer also offers group insurance, you can choose to transfer your accrued reserves from the old contract you had via your former employer to your new employer's pension institution. From then on naturally the terms and conditions of the new pension institution apply, and it is possible that your original interest rate guarantees may no longer apply.
- Option 5: you transfer the accrued reserves to a pension institution which distributes its total profits among its affiliates and limits the costs, as determined by Royal Decree of 14/11/2003
Once the acquired reserves are transferred to such a pension institution, your contract with AG Employee Benefits ends and the terms and conditions of the new pension institution apply. It is possible that you will no longer enjoy the same interest guarantees.
AG Employee Benefits may also act as such a pension institution.
Within which deadline must you make your choice?
If you make no express choice within 30 days of receipt of the end of employment letter, the accrued reserves remain insured in the original insurance combination (option 1). As mentioned, it is possible that your accumulated savings may not be paid out if you die before retirement. If you make no choice, AG Employee Benefits always guarantees a death in service benefit equal to the accrued reserves for the first three months.
To remind you: if you want to keep your death in service coverage, you can choose option 2 (explicit choice within the year) or option 3 (selection possible until your retirement age). You also have the possibility, in addition to the hosting structure, of transferring your reserves to your new employer's pension institution (option 4) or a pension institution that limits the costs and distributes the profits (option 5).
Pension benefit statement
If you leave your employer, you will receive, as well as your end of employment letter, a pension benefit statement containing a summary of the key figures, such as your accrued pension amount.