Losing your job: how does it affect your pension?
If you lose your job, your pension might not be the first thing on your mind. Nevertheless, it may be wise to think about it. As soon as you leave your job, your pension accrual will stop. This page explains how becoming unemployed affects your pension.
Leaving employment notice
If you leave your job and you have accrued pension with BeFrank, we will send you a leaving employment letter. You will receive an e-mail when the letter is ready for you to read on your personal pension page. The leaving employment letter will explain what is going to happen to your BeFrank pension. Read the letter carefully so that you know where you stand.
Your accrued pension will remain in tact
The pension that you have accrued will remain in your BeFrank pension account – even when you leave your old employer. We will continue to invest that pension capital for you.
Since we invest your pension, the value of your pension will change. How much the value will change depends on your risk profile. Want to adjust your risk profile? Go to your personal pension page or the app. You will also see how much your pension is currently worth.
Partner’s pension with unemployment benefit
If you receive unemployment benefit straight after you leave your job and you pass away while receiving that benefit, your surviving dependants may receive a surviving dependants’ pension from BeFrank. This depends on the pension scheme at your previous employer. For more information, take a look at the pension regulations on your personal pension page.
Long-term sick leave
If you have stopped working because you have a long-term illness and you are going to receive UWV benefit soon, you may be entitled to additional provisions through your BeFrank pension. This is specified in your pension regulations and in the leaving employment letter you receive from us.
The implications for your pension insurance
If you leave your job, this will have implications for your pension insurance. This all depends on whether your pension scheme at your previous employer complies with the old or new pension law.
Under the old pension law
If you leave your job, your pension insurance policies for occupational disability and death stop. Your surviving dependants may no longer be entitled to a partner’s and orphan’s pension if you pass away. However, if your pension scheme includes a ‘recovery clause’, this will continue to apply if you are no longer employed. A recovery clause means that your surviving dependants will receive the pension you have accrued with BeFrank if you pass away before your retirement date, even if you are no longer employed. An additional partner’s and orphan’s pension will be purchased using this pension.
Under the new pension law
With the new pension law, you remain insured for 3 or 6 months as standard when you leave your job. After this period, you decide for yourself whether you want to keep the insurance. Though, this may be subject to additional conditions. You can find more information about this on your personal pension page.
The new pension law changes the way we will distribute the pension if you pass away, even if you are no longer employed. Instead of the recovery clause, a ‘Life bonus’ applies. This means that your accrued pension is distributed to other participants at BeFrank with a similar pension scheme.
On your personal pension page, you can see the arrangements made for your surviving dependants if you pass away.
New job
Got a new job? Congratulations! You can transfer the pension you have accrued with us to your new employer. This is called a value transfer. Discuss with your financial advisor or pensions specialist whether this is a good idea in your situation. You can request a value transfer from your new pension administrator.
Small pension
If your accrued pension is between €2 and €520.35 (2022) per year, you have a small pension. BeFrank will automatically transfer this pension to your new pension administrator. You do not have to do anything for this.
Any accrued pensions worth less than €2 per year will be cancelled and the amount donated to charity.
> More information on how a new job affects your pension
Avoid a pension gap
Lost your job and haven’t found a new one yet? Or decided to work for yourself? Think carefully about your pension so that you still accrue enough pension later and avoid a pension gap.