Passing away: how will it affect your pension?

If you pass away before your retirement date, this will have a big financial impact on your surviving dependants. Usually, surviving dependants receive a monthly benefit through your pension scheme when you pass away. This page explains how it works.

Watch the video to find out what happens to your pension after you pass away (under the old Pensions Act):

Partner’s and orphan’s pension

Most employers take out insurance to cover the financial consequences in case of passing away. As a result, your surviving dependants will receive a surviving dependants’ pension if you pass away before your retirement date. A surviving dependants’ pension consists of a partner’s and orphan’s pension. Your partner and/or children are automatically insured for this. Should you pass away, we will contact your surviving dependants. This is called the ‘undetermined partner system’.

Supplementary insurance in case of passing away

Your employer may also give you the option in the pension scheme to take out supplementary insurances in case of passing away. Here, we distinguish between two insurance policies.

Anw survivor benefit shortfall insurance – temporary additional income in case of passing away
With an Anw survivor benefit shortfall insurance, your partner will receive an additional benefit if you pass away during your current employment. Your partner will receive this benefit until his or her State Pension Age.

Extra partner’s pension – lifelong higher partner’s pension in case of passing away
Does your pension scheme comply with the new pension law? Then your employer may also offer you the option of insuring for extra partner’s pension. This ensures that your partner receives a higher pension income if you pass away during your current employment. This partner’s pension continues after your partner reaches the State Pension Age.

You must apply for both supplementary insurance policies within three months of starting to accrue pension with BeFrank. Or within three months of a significant life event, such as buying a house, getting married or having a baby. After that three-month period, you will first need to complete a health declaration. Our medical department will then approve your request.

What happens when you leave your job?

You leaving your job will affect your pension insurance. With the new pension law, different rules apply compared to the old pension law.

Under the old Pensions Act
If you leave your job, you will no longer accrue pension with BeFrank. This means your pension policy will also stop. Under this Act, your surviving dependants might no longer be entitled to a partner’s and orphan’s pension if you pass away. If there is a so-called ‘restitution clause’ in your pension scheme, it does continue to apply when you leave your job. A restitution clause means that your surviving dependants will receive your pension accrued at BeFrank if you pass away before your retirement date. From this pension, an additional partner’s and orphan’s pension is purchased.

Under the new Pensions Act
With the new pension law, you remain insured for 3 or 6 months by default. After this period, you decide for yourself whether you want to keep the insurance. That may be subject to additional conditions. For more information, take a look at your personal pension page.  

From restitution to Life Bonus

The new pension law changes the way we distribute pensions in case of passing away. Instead of the restitution clause, a ‘Life Bonus’ applies. This means that if you pass away, your accrued pension will be divided among the other participants at BeFrank with a similar pension scheme. Please note that the pension you accrued under the old Pensions Act will continue to be subject to restitution. The extra surviving dependants’ pension has replaced this as insurance to still assure your dependents of extra income when you pass away.

Check your surviving dependants’ pension

If you are accruing pension through BeFrank, and you want to know how your surviving dependants’ pension has been set up, then take a look at the Survivor’s Pension Assistance via your personal pension page.