You accrue pension benefits in an average-pay plan
Each year you accrue pension benefits on a portion of the gross salary that you earned in that year. You do not accrue pension on your whole gross salary, because Philips Pensioenfonds takes into account the state pension (AOW) that you receive from the government when you retire. The portion of your salary on which you do not accrue pension benefits is called the ‘franchise’.
Each year you accrue 1.85% pension on your 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 age you receive this amount of pension each month for as long as you live. This is called an average-pay pension plan.
The accrual rate of 1.85% is not fixed. Under certain circumstances it may even be lower. In that case you accrue less pension for a certain period.
Important!
The flex pension provides for the accrual of pension benefits on an income up to € 137,800. If you earn more than € 137,800, you can save for extra pension via the voluntary net pension plan with Centraal Beheer PPI. To find out more about this, contact Centraal Beheer PPI.