In 2023 your accrual percentage is 1.85%
At the end of 2021, our members were informed that the pension accrual would be reduced to 1.65% in 2022 and 2023. We are pleased to inform you that this decision has been revised for the year 2023 and that the accrual percentage for that year will be increased to the ambition level of 1.85%. The accrual rate will also be 1.85% in 2024, if legally possible. This increase in pension accrual is not an isolated decision. You can read more about this in the upcoming edition of our magazine Generaties. You will receive Generaties in the last week of December. You can find the magazine (in Dutch) then under Downloads.
How does pension accrual work?
You accrue part of your pension each year. Your total pension is the sum of all those pieces. Every year you accrue pension on part of your salary. You do not accrue pension over your entire salary. Philips Pensioenfonds takes into account the state pension (AOW) you will receive from the government when you retire. The part of your salary over which you do not accrue pension is called a 'franchise'.
Each year you accrue 1.85% retirement pension on the gross salary minus the franchise. The total pension that you accrue in this way is the sum of all those years plus any increase (indexation). From your retirement date you will receive this pension amount every month for as long as you live. This is called an average pay scheme.
The accrual percentage of 1.85% is not fixed. It can also be lower under certain circumstances. You then accrue less pension for a certain period. In 2022, you accrued 1.65% pension.