How will the complementary pension be managed?
Your employer is under obligation to remit the contributions to a pension institution that manages the saved capital and pays it out to you on your retirement. Management of your complementary pension by a pension institution guarantees that your carefully accrued savings will not be lost if your employer is taken over, finds itself in financial problems or goes bankrupt.
How will a complementary pension be paid out?
The complementary pension will be paid out to you when you retire from work. Depending on your pension plan, you will receive the accrued amount after retirement either as a lump sum (the capital will be paid out) or as an annuity.
You can read here everything about the pay out of your complementary pension and the pros and cons of a lump sum or annuity.
Two important documents: the benefits statement and the pension regulations
- Each year you will receive a benefits statement that shows you information like the total amount accrued to date (i.e. your accrued benefits), the amount you will receive when you retire, and also what your beneficiaries will receive if you die before retirement age.
A benefits statement is not always easy to read, so you will find some useful explanatory notes here.
- Your pension regulations contain the rules applicable to your complementary pension. They include who is eligible to join the plan, who pays the contributions and when you will receive your complementary pension. You can obtain a copy of the pension regulations from your present or previous employer and from your pension institution. It is definitely a document worth reading, if only to get a better picture of what you can expect after your retirement.
My Global Benefits: your personal pension information
Want more clarity about your personal situation? Log on to My Global Benefits. This gives you a complete overview of your complementary pension, how much you have accrued to date, what you will receive on retirement and the entitlements of your beneficiaries should you pass away before you retire. My Global Benefits also allows you to consult your benefits statement digitally.