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. This page explains how becoming unemployed affects your pension.

As soon as you leave your job, your pension accrual will stop.

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. If you want to adjust your investment risk, go to your personal pension page or the app. You will also see how much your pension is currently worth.

No longer insured

If your pension scheme covered the risk of passing away and/or occupational disability, these risks will no longer be covered when you leave your job. The same applies for any other risks you have insured through us. Make sure you carefully check which things you are and are not insured for once you leave your job.

Implications for your surviving dependants if you pass away

It’s not the nicest thing to think about, but you could pass away before your retirement date. In that case, your surviving dependants will receive 100% of your investment capital – even if you are unemployed at the time of your passing away. They can use that amount to purchase pension benefits. We call this the recovery clause.

Partner’s pension with unemployment benefit

If you receive unemployment benefit straight after you leave employment and you pass away while receiving that benefit, your surviving dependants may receive a surviving dependants’ pension from BeFrank. It depends on your pension scheme. 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.

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.