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    BeFrank’s graduated scales since 2020

    The graduated scale provision depends on the scheme chosen by the employer.
    NB: the updated graduated scales are available here.

    Under the Future of Pensions Act

    What are the basic principles for these graduated scales?

    • The flat 30% graduated scale, which is the same for every age. This percentage is adjusted once every 5 years.
    • The employer can also opt for a non-retroactive effect of the progressive scale. For employees, the age-dependent graduated scales will then continue to apply. This is subject to the condition, however, that the graduated scale percentages cannot be higher than the percentages specified in Article 38r of the Wages and Salaries Tax Act 1964.
    AgeFlat graduated scaleNon-retroactive effect (38r)
    15-2030%19%
    20-2530%19,8%
    25-3030%21%
    30-3530%22,6%
    35-4030%24,4%
    40-4530%26,4%
    45-5030%28,6%
    50-5530%31%
    55-6030%33,8%
    60-6530%37%
    65-6830%40%

    Under the Pensions Act

    Since 2020, BeFrank has used new graduated scales. These scales still apply today. We have listed them for you here. Good to know: we have based the graduated scales of 2% and 2.5% on average salary cost. Cost changes may result in new scales. 

    Scales for gross pension schemes

    Leeftijd        4%             3%               2,5%            2%           1,5% 
    15-20        3,9%           7%             10,6%      14,2%          20%
    20-25        4,4%           7,7%             11,5%          15,3%          21,1%
    25-30        5,4%           9%             13%          16,9%          22,8%
    30-35        6,6%          10,4%             14,8%          18,6%          24,5%
    35-40        8%          12,1%             16,7%          20,6%                   26,5%
    40-45        9,8%          14%             19%          22,8%          28,6%
    45-50        12%          16,3%             21,5%          25,2%          30,9%
    50-55        14,6%          19,1%             24,5%          28%          33,5%
    55-60        18%          22,4%                  28%          31,2%          36,4%
    60-65        22,4%          26,5%             32,2%          35,1%          39,9%
    65-68        26,9%          30,7%             36,3%          38,8%          43,2%

    Scale for net pension schemes*

    Age      3% net scale 
    15-20      4,0% 
    20-25      4,6% 
    25-30      5,4% 
    30-35      6,1% 
    35-40      7,0% 
    40-45      8,1% 
    45-50      9,3% 
    50-55      10,8% 
    55-60      12,4% 
    60-65      14,2% 
    65-68      15,8% 

    *Meaning: the total maximum contributions of the pension base. BeFrank applies a maximum defined contributions of 90% of these graduated scales. We add the remaining 10% to the reserves for partner’s and orphan’s pensions.

    What are the basic principles behind these scales? 

    • We based the maximum scale on a 2% notional interest rate. 
    • We may further increase the graduated scale with a market interest surcharge. This increase varies and depends on the current price for an average salary pension. It allows your customer to put their tax allowance to good use.
    • The 1.5% scale is increased or decreased by a factor so that the 1.5% scale is never higher than the 2% scale with market interest increase. 
    • Your customer can apply a percentage of the graduated scale or an equal percentage of defined contribution.
    • We have based these graduated scales on a retirement age of 68.

    You can check the graduated scales for 2019 here.

    Questions about these scales?

    Please contact your BeFrank pension consultant.