All about voluntary continuation
Are you leaving your employer? If so, this will affect your pension and the insurance cover for your surviving dependants. Since the introduction of the Future Pensions Act (Wtp), you can choose to continue this insurance cover yourself in certain situations. This is called voluntary continuation. Below, you can read all about it.
This is what happens to your pension when you leave your employer
When you leave your employer, your employer will deregister you from the BeFrank pension scheme. Here’s what happens:
- Your accrued retirement pension will remain with BeFrank and will continue to be invested for you.
- The insurance cover for your surviving dependants will continue for another 3 or 6 months. This is called extended cover. The types of insurance included depend on your pension scheme. These may include partner’s pension, orphan’s pension, additional partner’s and orphan’s pension and, where applicable, surviving dependants’ insurance. After that, this insurance cover will end automatically, unless you opt for voluntary continuation.
- You have up to 9 months after leaving your employer to opt for voluntary continuation of the insurance cover for your surviving dependants’ pension. Once the extended cover ends, you can only voluntarily continue the following insurance: partner’s pension and surviving dependants’ insurance.
Use the Survivor’s Pension Assistance on your personal pension page to check what has been arranged for you.
Good to know: do you only have risk cover with us? If so, you do not build up any pension capital with us, and no money is invested for your pension. This means you cannot voluntarily continue your insurance cover.
What is voluntary continuation?
Voluntary continuation means that after you leave your employer, you continue your partner’s pension and/or surviving dependants’ insurance yourself. You may want to consider this if, for example, you are temporarily out of work or move to an employer whose pension scheme does not provide a surviving dependants’ pension.
This means your surviving dependants remain financially protected if you pass away, even if you do not (temporarily) have an employer with a pension scheme. Important to know:
- You pay the contribution yourself.
- The contribution is automatically paid from your personal pension fund with BeFrank, so you do
not need to do anything yourself. As a result, your pension will be lower - You cannot voluntarily continue the orphan’s pension or the additional partner’s and orphan’s pension.
Is voluntary continuation right for you?
Everyone’s personal situation is different. Would you like to know what the right choice is for you? Discuss your situation with a financial adviser. You will have to pay for this advice. Here is some information to help you understand the different situations.
Voluntary continuation may be a good option in the following situations:
- Your partner could face financial difficulties without this cover.
For example, they may find it difficult to pay regular expenses such as rent or mortgage payments if your income is no longer available. - You don’t have any other insurance to cover this risk.
Without insurance, such as term life insurance, you won’t be covered if you pass away. - You are (temporarily) not in employment.
For example, because you have become self-employed or are temporarily unemployed. During this period, you will often not have automatic cover through a pension scheme if you pass away.
Voluntary continuation may not always be necessary or worthwhile. For example, in the following situations:
- You do not have any other insurance that covers this risk.
Without insurance such as term life insurance, you are not covered if you pass away. - You no longer have a partner.
There is no one who would receive a benefit from the insurance, so there is no need for this cover. - Your partner has sufficient income or assets of their own.
Your partner would be able to manage financially without your income. - You already have similar insurance.
If you already have other insurance that covers the same risk, such as term life insurance, voluntary continuation could mean that you are insured twice for the same risk. - You will soon start a new job with a new pension scheme.
The risk is only temporary and will soon be covered through your new employer. - You largely depend on your expected pension when you retire.
The contribution is deducted from your pension fund at regular intervals. This reduces your pension capital, resulting in a lower pension.
Making your choice
Want to know how to make a choice about voluntary continuation? When you need to make that choice? And how to apply for voluntary continuation?
Terms and conditions
Voluntary continuation is only available if you meet all the terms and conditions. Find out if you’re eligible to apply.
Frequently asked questions
See below for the most frequently asked questions about voluntary continuation.