A BeFrank pension scheme: essential information for employers

If you have more than 25 employees, you need to ensure their pension is organised. So make sure you take out a pension scheme with BeFrank. This page tells you everything you – as an employer – need to know.

A pension for your employees

At BeFrank, we offer a pension scheme for your employees. It is a collective pension based on a defined contribution scheme. We offer pension schemes under the Pension Act and under the Future of Pensions Act.

Defined contribution scheme

In a defined contribution scheme, the amount of the pension depends on the amount of contribution being paid and the investment returns on that contribution.

The amount of contribution you and your employees pay is set in advance, but the amount of pension benefits is not. This is set on an employee’s retirement date.

We invest 100%

At BeFrank, we invest 100% of pension contributions in our lifecycles. This means we do not deduct any hidden costs. Clear, right?

Moreover, your employees make their own choices about how we invest their contributions. As an employer, you can allow your employees to opt for Do It Yourself investing or make additional pensions contributions. You decide how much investment freedom they have and therefore which options are available to them.

Risk reduction

The closer your employees come to their retirement age, the less investment risk we take. It allows us to ensure more certainty about their pension. Employees can tailor their risk reduction to their personal situation.

When your employees are approaching the State Pension Age, they will buy their own pension from an insurer of their choice.

Net pension scheme

In the Netherlands, you get tax benefits on your pension capital. This applies to salaries of up to
€ 137,800 (2024) per year. If an employee earns more than that, a net pension scheme could be an option. In that case, the employee voluntarily accrues a net pension on the salary portion above
€ 137,800 per year. This salary limit is adjusted annually.

Tax benefit

As an employer, you pay the contribution for the net pension scheme on behalf of your employees. You offset this contribution against their net salaries. This allows your employees to accrue net assets in the second pension pillar: the employer pension.

Pension accrual then falls under Box 1 for tax purposes. Employees therefore do not have to pay tax on the value of their net pension in Box 3. And good to know: employees buy their own pension benefits using their pension capital. They no longer pay tax on that benefit.

Insurance for partner’s pension

If your employee opts for a net pension scheme, they can also take out insurance for the partner’s pension above this salary limit. That way, an employee’s surviving dependants have good insurance cover if the employee passes away unexpectedly before they reach their retirement date.