Of course, you hope it’s never going to happen, but it can: you become occupationally disabled or you pass away. Your employer can take out pension insurance for those situations. Below, we explain the most important ones.
You may be forced to stop work due to an accident or illness. This will have a big impact on yourself and potentially your family as well. Your employer may choose to cover the risk that you become occupationally disabled. That means you will continue to accrue pension even if you can no longer work.
How does that work? We explain in this video.
Partner’s and orphan’s pension
Most employers also take out insurance to cover the financial consequences in case of passing away. As a result, your 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. You do not need to register your partner or children for this. We look up the information ourselves if necessary. We call this the ‘undetermined partner system’.
If you are accruing pension through BeFrank, go to your personal pension page to find out which arrangements your employer has put in place for you.
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 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. You pay the contribution for this insurance yourself. You can find the amount of the contribution at BeFrank on your personal pension page.
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. You can do this through the Survivor’s Pension Assistance on your personal pension page. You will then also fill in a health certificate. Our medical department will then approve your request.
Want more information? This video explains what will happen to your pension when you pass away.
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.