At BeFrank, you can take out pension insurance policies on behalf of your employees. That way, their pension (and that of their surviving dependants) is not jeopardised if they pass away or become occupationally disabled. Here’s how you can cover these risks.
Risk: passing away
1. Partner’s and orphan’s pension
When an employee passes away, the family loses part or all of its income. Employers can insure that risk for surviving dependants by opting for the partner’s and orphan’s pension.
If an employee passes away before they reach their retirement date, the partner and children will receive benefits:
- Partners receive a partner’s pension for as long as they live.
- Children receive an orphan’s pension up to a set age. This varies for every scheme. If your scheme falls under the Pensions Act, you as the employer determine whether this is 21, 27 or 30 years. If your scheme falls under the Future of Pensions Act, this is 25 years as standard.
Salary above €128,810
If an employee earns over €128,810 (2023) per year and accrues pension through a net pension scheme, the employee can opt for a partner’s and orphan’s pension for the salary portion above €128,810. This is a lifetime guaranteed amount. The premium for this insurance is paid by the employee.
2. Anw survivor benefit shortfall insurance
When an employee passes away, surviving dependants may receive statutory Anw benefits. That is a basic income from the government.
Anw benefits are not something you automatically receive – you have to meet strict requirements.
With Anw survivor’s benefit shortfall insurance, the partner of the deceased employee receives a monthly benefit until the partner reaches retirement age.
If you have a pension scheme under the Future of Pensions Act, you can also choose to let your employees decide for themselves whether they want an additional surviving dependants’ pension.
You can either take out Anw survivor benefit shortfall insurance for all your employees or only for employees who need it.
Your employees then specify through their personal pension page whether they want to add this cover to their pension. They will pay the premium themselves.
Risk: occupational disability
1. Waiver of contributions in the event of occupational disability
If an employee becomes occupationally disabled, they become entitled to benefits under the Work and Income (Capacity for Work) Act (WIA).
If you opt for the ‘waiver of contributions in the event of occupational disability’ cover, your employee will continue to accrue pension with us as usual. We will take over all or part of the premium from you when the participant receives state occupational disability benefit (WIA) and the obligation to continue to pay wages has expired.
The waiver of contributions takes effect when the employee is at least 35% occupationally disabled and receives government benefits. The waiver expires on their State Pension date, but no later than the first day of their (regulatory) retirement date.
2. Occupational disability pension
If your employee is entitled to WIA benefit, they will receive a benefit from the government.
If you opt for BeFrank’s occupational disability pension, your employee will receive a periodic benefit from us in addition to that.
You will take out an occupational disability pension for all your employees.
Good to know
Once an employee leaves their job, they are no longer insured against occupational disability or increased occupational disability following the end of their period of employment.