Pensions
The pensions supplement statutory benefits such as the old age pension AOW, surviving dependents' pension, and incapacity benefits. If the participant stops working between the ages of 60 and 70, he/she will receive the ABP Multi-Option Pension. If the participant dies, his/her partner and children may receive an ABP Survivor’s Pension. If the participant becomes unfit for work, the government will pay incapacity benefits under the Work and Income (Ability to Work) Act (WIA); ABP can supplement these benefits with an incapacity pension.
Since 1 January 2004, ABP pensions are based on average salaries during the course of the pensioners’ careers. This is known as an average-salary scheme. As a transition measure, benefits accrued before 2004 are based on the salary on 1 January 2004. Only members of the armed forces now have pensions based on their final salaries
Both contributions and accrual of benefits are based on the salary minus a threshold (2008: € 10,100 per year). The reason for the threshold is the fact that the pension is a supplement to the AOW, etc.
Read more about this topic: Stichting Pensioenfonds ABP
Famous quotes containing the word pensions:
“Many old people receive pensions for no other reason, it seems to me, but as a compensation for having lived a long time ago.”
—Henry David Thoreau (1817–1862)