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A small pension

Have you not accrued a pension with BeFrank for very long and are you changing jobs or retiring? If so, you may have a small pension. This page tells you what a small pension is and what choices you have.

What is a small pension?

You have a small pension if your pension benefit is between € 2 and € 632.63 (in 2026) gross per year. Is your pension benefit less than € 2 per year? In that case, your pension is legally voided. BeFrank chooses to transfer these pensions to a charity.

Do you have a new job?

If you have a new employer, we will automatically transfer your small pension to your new Dutch pension administrator. Does this not succeed within 5 years, for example because you do not have a new pension administrator? If so, you will be able to commute your small pension. This means that you will receive your pension capital as a one-off net payment into your account. You can read more about how to arrange this under ‘Commutation of small pensions’.

Have you accrued a small pension in a net pension scheme with BeFrank? You can have your small pension commuted as soon as you leave employment.

Is your expected pension benefit higher than € 632.63 (in 2026) gross per year? Your pension will remain with BeFrank until you retire. Unless you opt for a value transfer. You will not be able to commute your pension.

Are you retiring?

You will receive a letter 7 months before your retirement date explaining the options if you have a small pension. You can only commute your small pension from your State Pension Age up to 5 years after it. If you want to retire earlier than your State Pension Age, you cannot yet commute your pension.

Have you accrued any other pension pots? You can also choose to combine your small pension with these other pots and use them to purchase a pension. Both options are explained in more detail below. Each option has advantages and disadvantages. It can be useful to get advice on this.

Note: as we will be investing your pension until your retirement date, we will be able to definitively determine whether you have a small pension one month before your retirement date. Has your pension in the meantime increased to a pension benefit of more than € 632.63 (in 2026) gross per year? If so, the law provides that you must purchase a pension from a pension administrator of your choice. You cannot purchase a pension from BeFrank. 

Commutation of small pensions

If you commute a small pension, you will receive your pension capital from BeFrank as a one-off net payment into your account. The advantage is that you receive an amount at once which, for example, allows you to take a nice trip or renovate your house or garden. However, commutation can also have consequences for your financial situation. 

Please note the following if you commute a small pension:

  • Wage tax: We are legally obliged to withhold wage tax from the pension amount paid out to you. As a result, the amount you receive is lower. 
  • Housing or healthcare benefit: if your income increases as a result of the commutation of a small pension, you may have to (partially) repay housing or healthcare benefits.
  • Income tax: the Tax and Customs Administration views the one-off pension amount you receive as income. Because your income increases that year, you may fall into a higher tax rate, which means you pay more income tax. Have you accrued a small pension under a net pension scheme? You will not pay any tax upon commutation of your small pension.
  • No right to a surviving dependants’ pension: if you commute your pension, your partner and/or children will no longer be entitled to a surviving dependants’ pension in the event of your death.

How do you arrange a commutation?

Step 1. Send a request for commutation

E-mail klantenservice@befrank.nl for a request for commutation of your small pension. Include the following information:

  • Your reference number. You can find this under Pension details on your personal pension page.
  • The date on which you wish to commute. On this date, we will start selling your investments.
  • A copy of your bank card or a recent bank statement that clearly shows your name and IBAN (account number). This copy must not be older than 3 months.
  • A copy of your ID. This copy must not be older than 3 months. And redact your Citizen Service Number (BSN) and photo to send a secure copy. Tip: with the government’s KopieID app, you can easily make a secure copy of your ID.

Please note: if you retire, send this e-mail one month before your retirement date.

Step 2. We will sell your investments

We will start the sale of your investments on the desired date. As soon as we start, you will receive an e-mail from us. The sale takes 10 business days.

Good to know: Are you retiring? BeFrank cannot sell your investments until the termination date of your employment is known. Your employer will inform us of this. This date will then be entered under Pension details. You do not need to take any action.

Step 3. We will transfer your pension capital to you

After the sale of your investments, we will determine the final amount and transfer it to you. This process takes about 10 business days.

Step 4. You will receive a payment specification

You will receive a payment specification by post. You will need it for your tax return. Keep it carefully, because we will only send it once.

Combining pension pots

Are you about to retire and do you have any other pension pots? You can combine your BeFrank pension with the pension capital you have accrued with another pension administrator. You can purchase a pension with this total capital. Good to know: you cannot purchase a pension from BeFrank. On www.mijnpensioenoverzicht.nl you can see where you have accrued pension.

The advantage of combining pension pots is that you have everything clearly in one place. And that more pension capital allows you to purchase a (slightly) higher pension which you will receive for life.  

How do you combine your pension pots?

Step 1. Check your expected pension

Go to your personal pension page and check your expected pension. And see which pension options you would like to choose.

Step 2. Request quotes

Request quotes from one or more pension administrators for the purchase of your pension 6 to 8 weeks before your retirement date. Indicate which pension pots you want to combine. Here you can find more information on how to request quotations. 

Step 3. Inform BeFrank of your pension choice

Have you chosen a pension administrator to purchase your pension? You or your advisor can send an e-mail one month before your retirement date to klantenservice@befrank.nl with:

  • your reference number, which can be found under Pension details on your personal pension page.
  • the transfer document or the signed quotation. This document contains your chosen pension administrator and the date on which your pension starts. We need this to transfer your pension capital to your chosen pension administrator.

Step 4. We will sell your investments

We will start selling your investments on your desired retirement date. You will receive an e-mail from us about this.
Good to know: BeFrank cannot sell your investments until the termination date of your employment is known. Your employer will inform us of this. This date will then be shown under Pension details. You do not need to take any action.

Step 5. We will transfer the pension capital to your chosen pension administrator

As soon as your investments have been sold, we will send you an e-mail indicating the final amount of your pension capital. We will transfer this amount to your chosen pension administrator.

Step 6. You will receive a lifelong pension

You will receive a monthly pension from your chosen pension administrator.