Divorce - Stichting Pensioenfonds SABIC

Divorce
Version 10.05.2016
Version 10.05.2016
Divorce and pension
There are ten thousand divorces in the
Netherlands every year. Divorce leaves
(marriage) partners with a lot of loose
ends, including their pensions. The
question that arises here is: what about
the pension entitlements both partners
have accrued over the years? This
brochure outlines what needs to be done
and describes how to arrange pension
matters in a proper way in settling
divorces as from 1 May 1995.
Divorce
Upon divorce the marriage is dissolved
and any partner’s pension and retirement
pension must be distributed by law. For
notarial cohabitation contracts the above
applies only when included in a certified
termination contract.
Divorce agreement
A notary or a lawyer can draw up a
divorce agreement. In the agreement the
parties can consent to deviate from the
rules that the law stipulates for the
distribution of the pension entitlements
on divorce. Divorce agreement sample
texts are available upon your request
from our Pension Desk
+31 (0)45-5788100 or email:
[email protected].
After the divorce, a portion of your
retirement pension must be shared with
your former partner when you retire. The
retirement pension that your former
partner receives is called an ’equalized
pension’. If you should die, your former
partner is also entitled to a partner’s
pension - the ‘special partner’s pension’.
The same applies if you have accrued a
pre-pension entitlement (temporary
retirement pension and early retirement
pension).
Pre-nuptial agreement
You can draw up (or amend) a
pre-nuptial agreement before you get
married, but also during your marriage. In
the agreement you can make
arrangements on how to settle your
pension affairs if you should ever get
divorced.
The law stipulates how all these different
matters should be settled.
However, you can also deviate from the
statutory rules by having a divorce
agreement drawn up, or by including an
agreement on this in a pre-nuptial
agreement. If you do not want to follow
the statutory rules, you will always require
the help from a lawyer or notary.
Costs of arranging the distribution
of pension yourself
Whenever the word ‘marriage’ in this
brochure, it should be read to include a
registered partnership or (under certain
circumstances) a notarial cohabitation
contract recognized by SPF. When using
‘divorce’ it also means the termination of a
registered partnership or a notarial
partnership.
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If you arrange the division of retirement
pension and any pre-pension capital
yourself, SPF will need to make some
calculations for you. These calculations
entail costs that will be shared equally on
the first benefit between the former
marriage partners. Upon payment of the
benefit, the costs will be deducted.
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If you or your former partner have
accrued retirement pension with more
than one pension fund, you should also
send a completed form ‘Notification of
divorce for the purpose of distribution of
retirement pension entitlement’ to these
or that pension fund(s) respectively.
Retirement pension and divorce
A law passed on 1 May 1995 (Wet
verevening pensioenrechten bij (echt)
scheiding [Pension Rights Settlement
(Divorce) Act]) determines how the
retirement pension should be distributed
on divorce. This relates only to the
distribution of the retirement pension
accrued during the marriage and not to
other pension components such as the
general state pension (AOW), annuities or
partner’s pension.
After having sent the above form to SPF,
you will be notified within two months of
the amount of your share of the
retirement pension and the amount your
former partner will receive.
We will also inform your former partner
about his/her part.
What about your retirement pension when
you get divorced?
When you retire in the future, your former
partner is entitled to half of the retirement
pension that you accrued during the
marriage. This is called the ‘equalized
pension’. If your partner has accrued
retirement pension in his or her own right
during your marriage, you are also entitled
to half of that pension when your former
partner retires.
Once the distribution of the retirement
pension has been established, the
amount of the equalized pension may still
increase over time, if the pension fund
decides to grant supplements (index) to
maintain the purchasing power of the
pension. The equalized pension from your
former partner is going on when you
retire. If you decide to deviate from your
retirement date it will affect the height of
your retirement pension, as it will affect
the date and amount of the former
equalized pension that your former
partner will receive.
To ensure that SPF pays you the
retirement pension and your partner is
paid the equalized pension in future, you
must fill out and send in the form
‘Notification of divorce for the purpose of
distribution of retirement pension
entitlement’ [Mededeling van
echtscheiding in verband met verdeling
van ouderdomspensioen] .
You can request this form from the Dutch
Rijksoverheid (www.rijksoverheid.nl). The
phone number is 1400. If the form is sent
in within the statutory two-year period
after the date of divorce, the signature of
one of the partners suffices, provided the
standard division (50% / 50%) is opted
for. If the form is submitted later than two
years after the date of divorce it will be
processed by SPF only as long as both
former partners have signed it.
This holds only for divorces as from 1
January 2010. If you do not send this form
to SPF, the whole of your retirement
pension will be paid to you as of your
retirement date and you will then have to
transfer half of it to your former partner
each month.
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Example
Example
Peter and Marie get divorced. At that
time, Peter is 45 years old. Peter and
Marie have been married for 20 years.
Peter started working at SABIC when he
had been married for five years, so during
his marriage he accrued 15 years of
pension with SPF. The accrued
retirement pension for that period is, for
example 15,000 euros (gross). If Peter
retires, Marie will receive 7,500 euros
(gross) equalized pension a year. This
amount may be higher if SPF has granted
supplements in the intervening period.
Jan and Inge get divorced when Jan is
70. From the time of his marriage until his
retirement Jan accrued 35 years of
retirement pension.
His retirement pension is therefore
35,000 euros (gross) a year. After the
divorce, both Inge and Jan receive
17,500 euros (gross) retirement pension
from SPF.
Re-marriage after a divorce
If you re-marry after a divorce, your new
partner will be entitled to an equalized
pension accrued during the new period
your second marriage lasted.
Death Benefits
What happens if you or your former
partner die? If your former partner dies,
you will receive the full claim to the
retirement pension. The (special) partner’s
pension entitlements which have arisen
following the divorce will expire. If you die,
your former partner will not receive the
equalized pension, but will receive a
special partner’s pension (see chapter
partner’s pension and divorce).
End of cohabitation
When your cohabitation agreement is
terminated, your former partner is entitled
to the special partner’s pension. Your
former partner is also entitled to equalized
pension, if this has been incorporated in
the cohabitation agreement. If you end a
partner relationship, but there has not
been any cohabitation agreement, your
former partner is not entitled to any
special retirement pension or partner’s
pension from SPF.
Example
Peter from the previous example is now a
bit older. When he is 70 years old, Marie
dies after having received an equalized
pension from SPF for five years. For
Peter, this means that his retirement
pension is increased by 7,500 euros
(gross) a year.
Divorce after retirement
A couple may also divorce after retirement
and in this case the law also prescribes
that the retirement pension accrued with
SPF during the marriage is distributed
between the partners.
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Net pension scheme
(NPS)
Retirement pension
The pension you are entitled to as of
your retirement date. You can opt to
draw the retirement pension earlier or
later, which will affect the amount of the
retirement pension.
SPF’s Net Pension Scheme
(NPS) offers opportunities
to save for extra pension
for those employees
earning over €101,519 a year. The NPS
provides options for this purpose. The
scheme allows purchase of pension
entitlements with additional pension
capital. Any capital saved during the
marriage will be divided equally over you
and your partner. The same applies for
pension entitlements purchased under
the NPS scheme. The conditions and
detailed info can be found in the
dedicated brochure.
Equalized pension
The part of the retirement pension to
which the former partner is entitled.
Payments to the former partner start
after you retire.
Pre-pension capital
Partner’s pension and divorce
A lot of SABIC employees have in the
past been given the opportunity to make
additional savings in order to accrue a
higher pension or for early retirement.
This opportunity was offered under the
pre-retirement scheme.
In addition to a retirement pension, you
also accrue a partner’s pension.
If you get divorced, your former partner
has a legal entitlement to the partner’s
pension that you have accrued from the
moment of pension participation up to the
time of the divorce, which is 70% of the
retirement pension accrued up to that
date. This is what we use to call the
special partner’s pension.
The capital that you have saved during
marriage under the pre-retirement
scheme should also be distributed equally
between you and your former partner on
divorce.
The same applies if you have accrued a
pre-pension entitlement (temporary
retirement pension or early retirement
pension).
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After divorce, a former partner is no
longer entitled to receive a
supplementary partner’s pension. The
supplementary partner’s pension is
intended to compensate for the fact that
your partner will not receive a general
state benefit (AOW) until the state
pension age.
Example
Kees and Jolanda get divorced. At that
time Kees is 45 and has worked for
SABIC and accrued pension for 15
years. The pension accrued in 15 years
entitles him, for example, to an annual
retirement pension of 15,000 euros
(gross). If Kees and Jolanda live until
Kees retires, Jolanda will receive 7,500
euros (gross) equalized pension from
SPF each year. However, if Kees dies
before Jolanda does, Jolanda loses the
right to an equalized pension of 7,500
euros (gross).
However, she will then probably receive
a special partner’s pension entitlement of
70% of 15,000 euros (gross) or 10,500
euros (gross).
Do you live abroad?
If you get divorced while you are living
abroad, you must notify SPF of this. If
you were married, send a copy of the
divorce agreement to SPF. If you had a
registered partnership, then send a copy
of the dissolution contract. If you were
cohabiting and had notified SPF of this,
send a copy of the termination
agreement.
Example
What pension-related action must
you take if you get divorced?
If Kees from the previous example dies
before his retirement date, Jolanda will
therefore receive, in addition to the
special partner’s pension of 10,500 euros
(gross), a temporary special partner’s
pension of 2,100 euros (gross) (i.e. 20%
of EUR 10,500) until her general state
pension age. However, she will not
receive a supplementary partner’s
pension.
Pension-related actions are necessary
when you wish that the pension payment
to your former partner will be done by
SPF.
 You should notify SPF of the divorce
within two years after the date of
divorce using the form ‘Notification of
divorce for the purpose of distribution
of retirement pension entitlement’. This
form can be obtained from the Dutch
Rijksoverheid (www.rijksoverheid.nl).
The phone number is 1400.
Temporary and supplementary
partner’s pension
 You should send SPF a copy of the
A former partner who receives a special
partner’s pension may also receive a
‘special temporary partner’s pension’ until
he or she reaches the general state
pension age.
The special temporary partner’s pension
is intended to compensate for the higher
deductions until the former partner
reaches his or her pension age.
The special temporary partner’s pension
amounts to 20 percent of the special
partner’s pension.
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registration of the divorce decision in
the registers of civil status.
 If you and your partner are settling the
distribution of your pension
entitlements yourselves through a
notary or lawyer, you should send SPF
a copy of the agreements made,
together with the form ‘Notification of
divorce for the purpose of distribution
of retirement pension
entitlement’.
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That too was impossible with the
distribution option described in this
brochure. Once you and your former
partner have decided on conversion the
decision is final, and once carried out,
conversion cannot be reversed.
Partner’s pension
Pension payment to the partner upon
your death. The Partner’s pension
amounts to 70% of the retirement
pension that you would have accrued
with SPF if you would have worked until
your state pension age.
After conversion, you and your former
partner receive a retirement pension from
your own pensionable age. Your former
partner is no longer dependent on the
retirement date for your pension.
Special partner’s pension
Conversion is possible:
- on divorce,
- after dissolution of a marriage following
legal separation, so not on legal
separation only,
- at the end of a registered partnership,
- on termination of a notarial cohabitation
contract.
Pension payment to your former partner
upon your death The special partner’s
pension amounts to 70% of the
retirement pension that you accrued up to
the date of divorce.
Special partner’s pension will be
deducted from the partner’s pension.
In all cases the conversion agreement
should be included in the contract via a
notary or lawyer.
Conversion and divorce
Another condition for conversion is that
SPF gives its consent. SPF will give this
consent only if the following conditions
are met:
There is another option
besides the legal distribution
of the retirement pension,
partner’s pension or prepension capital described above: Pension
conversion. There is a significant
difference between conversion and the
distribution option referred to in this
brochure. With conversion, the part of the
retirement pension, special partner’s
pension and any pre-pension capital that
goes to your former partner becomes a
separate entitlement. The amounts you
and your former partner are entitled to
make up, as it were, two separate pension
pots. After conversion, you and your
former partner have no further dealings
with each other as far as pension is
concerned. In the non-application of
conversion and upon death of your former
partner, you get back your full retirement
pension. After conversion that is no longer
possible. Conversion offers your former
partner the chance to transfer the money
set aside for him or her on divorce to
another pension fund. He or she then has
nothing more to do with SPF.
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1) Both partners sign the form
‘Notification of divorce for the purpose
of distribution of retirement pension
entitlement’ and choose conversion
on the form. You can obtain the form
from the Dutch Rijksoverheid
(www.rijksoverheid.nl).
The phone number is 1400. You must
do this within two years of the divorce.
2) The agreement for conversion must
be established in the pre-nuptial
agreement, pre-partnership
agreement, the divorce agreement or
cohabitation agreement.
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3) One of the following documents must
be handed over to SPF:
-
More information
 You can ring the SPF Pension Desk to
a certified copy of the pre-nuptial or
partnership agreement,
a certified copy of an extract from the
pre-nuptial or partnership agreement,
a certified copy of the divorce
agreement,
a certified copy of a termination of a
cohabitation contract which includes
the choice of conversion,
a certified extract from the divorce
agreement.
discuss questions about divorce and
pensions at any time during office hours
(+31 (0)45 - 5788100) or email a
question to
[email protected].
 You can also find information on this
subject on www.rijksoverheid.nl. Search
for ‘Familie en gezin’ [family], then click
on ‘familie, jeugd en gezin’ en
‘scheiden’., The phone number is 1400.
The extract or copy must be certified by a
lawyer, a notary, or by a foreign authority
that signs and/or stamps the document.
 www.pensioenkijker.nl also provides a
lot of additional information.
 The Ministry of Justice provides
information on www.justitie.nl. Click on
‘Familie en gezin’ and then on
‘Scheiding en alimentatie’ [divorce and
maintenance].
 You can also visit the website
www.vfas.nl of the Vereniging van
Familierecht Advocaten en
scheidingsbemiddelaars (VFAS)
[association of family lawyers and
divorce mediators].
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Example
SABIC employee Martijn (45 years old) and his partner Natascha (42 years old) are going
to divorce. They have decided to share Martijn’s SPF pension entitlements by means of
conversion. During the time that he was married to Natascha, Martijn accrued a retirement
pension worth €25,000. He also accrued €17,500 for partner’s pension and €3,500 for
temporary partner’s pension.
After conversion, Martijn’s and Natascha’s pension entitlements will be as follows:
 From his retirement date to his death, Martijn will receive:
Retirement pension: €13,948.60
 From her retirement date to her death, Natascha will receive:
Retirement pension: €17,202.86
If Martijn and Natascha had chosen equalization instead of conversion, then their pension
entitlements would be as follows:
 From his retirement date to his death, Martijn will receive:
Retirement pension: €12,500
 From Martijn’s retirement date until he dies, Natascha will receive:
Special retirement pension: €12,500
This benefit will end on Martijn’s death
 If Martijn dies, Natascha will receive (until her death):
Special retirement pension: €17,500 and until her (target) retirement age
Temporary partner’s pension: €3,500
The differences in the entitlements after conversion or equalization are due to different
methods of calculating these entitlements. In the case of equalization, only Martijn’s life
(and death) is taken into account. With conversion, there is no longer any link to Martijn’s
life and Natascha receives her own rights.
(All gross amounts per annum).
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Overview
You get divorced and your
former partner is still living.
Your former partner receives half of the
retirement pension accrued during the
marriage.
The amount of equalized pension received by
your former partner is deducted from your
retirement pension.
Your former partner dies
before you do.
Your retirement pension is increased with the
amount your former partner was entitled to.
You die after retirement, your
former partner is still living.
Your former partner loses his or her share of
the equalized pension that was accrued during
your marriage.
Your former partner may still
receive a special partner’s
pension.
You die before retirement:
Your former partner may become eligible for a
special partner’s pension.
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Contact
If you have any questions about your pension visit the website:
www.spf-pensioenen.nl
or contact our Pension Desk:
tel. 045 - 5788100
or email: [email protected]
Regulations
Read more about divorce and pension in the pension regulations by
clicking on the icon.
Disclaimer
The information provided in this brochure by Stichting Pensioenfonds SABIC, based in Sittard (the pension fund) is general,
purely indicative and subject to change. It is intended only to provide members with a general view. The information provided
is assumed to be reliable, but is used entirely at the user’s risk. Neither the administrator (DSM Pension Services B.V.), nor
the pension fund accepts any liability for damage arising from errors or omissions in the information, or for damage arising in
connection with the use of, reliance on, or distribution of the information. Rights can be derived only from the pension
regulations applying to the member.
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