Income

Income

If you can no longer work due to disability, you are entitled to two additional benefits from the Philips Pension Fund in addition to statutory WIA benefits. First, you will receive an occupational disability pension if your employment is terminated due to disability. In addition, your future pension accrual will continue on a non-contributory basis for as long as you are entitled to WIA benefit. The WIA benefit and the disability pension are explained below. We also highlight the individual provisions you can make yourself.

The legal income component: WIA

If a disability renders you incapable of working, you are entitled to benefits from the government, called 'WIA benefits', under the Dutch Work and Income (Capacity for Labour) Act (Wet werk en inkomen naar arbeidsvermogen, or 'WIA'). You may claim these benefits if you meet the appropriate requirements; one of those requirements is that you must be declared more than 35% disabled. The WIA provides for various forms of benefits.

The various forms of benefits under the WIA are:

• 'IVA benefits' for disabilities that render you wholly and permanently (at least 80%) incapable of working. 'IVA' is short for Inkomensvoorziening Volledig Arbeidsongeschikten, i.e. 'income for wholly disabled persons';
• Benefits for disabilities that render you less than 80%, but at least 35%, incapable of working. These are called 'WGA benefits', under the Werkhervatting Gedeeltelijk Arbeidsgeschikten ('resumption of work by persons partially capable of working') rules. If you have confirmation that your disability renders you at least 35%, but less than 80%, incapable of working, the employee insurance agency UWV will determine your residual earning capacity. Your residual earning capacity reflects how much income you could still earn, allowing for your disability.

For example, if your disability percentage is 40%, you are still earning 60% of your income by working: that 60% is your residual earning capacity. If your disability is established at less than 35%, the government will not pay you any benefits under the WIA. To find out more about WIA benefits, visit the website of the employee insurance agency UWV .

Your disability pension under the flex pension plan

If you start receiving WIA benefits following a long period of sick leave, and your employment contract is terminated from two years after the first day of illness, you are entitled to an additional disability pension from Philips Pensioenfonds. All our members automatically have insurance for this disability pension, which serves to supplement the WIA benefits.

Please note: are you dismissed due to disability earlier than two years after the first day of illness? Then you will not receive the disability pension until two years after the first day of illness. And is your first day of illness before January 1, 2023? Then the rules apply as they applied before January 1, 2025. In that case, a waiting period for the disability pension of at least three years applies.

In what situations do you qualify for a disability pension?

To qualify for the full disability pension coverage, your disability must render you at least 80% incapable of working (based on the standards of the WIA). Partial disability carries other coverage percentages.

If the percentage of your disability changes, the UWV notifies us.

Individual arrangements

You also have the option of taking out insurance with an external party to cover the possibility of becoming disabled. For example, some or all of the risk of an income shortfall if disability renders you incapable of working can be covered via your mortgage.