Cover in the event of the death of the participant: No limitations and/or exclusions
The pension providers have indicated that there are no restrictions and/or exclusions. This means that if a participant dies as a result of the Covid 19 virus, the partner’s pension, orphan’s pension and ANW gap pension will be paid out to the surviving relatives in accordance with the contents of the pension regulations.
The waiver of premium at disability: No restrictions and/or exclusions
Should the participant become disabled due to the Covid 19 virus, no restrictions and/or exclusions apply to the insurance coverage. If the participant becomes (partially) disabled due to the Covid 19 virus after 2 years of sickness, the pension provider will grant (partial) waiver of premium.
At this moment there are no differences in policy conditions between the pension providers.
Pension accrual & part-time unemployment benefit
You may be forced to apply for part-time unemployment benefit for your employees. The tax authorities have indicated what consequences this may have for pension accrual.
Hereby 3 situations are described which are summarized below:
1. Reduction of working hours where the employment contract is fully respected.
Insofar as there is a customary reduction in salary, the pension accrual can be continued over the salary received prior to the reduction in working hours.
2. Working hours reduction whereby the employment relationship is (partially) temporarily terminated in connection with the Covid 19 virus
If the employee receives an income-replacement, wage-related benefit (e.g. a (part-time) unemployment benefit), pension accrual may be continued on the basis of the pensionable salary received prior to the reduction in working hours.
3. Working time reduction not involving involuntary dismissal or no income-replacement, wage-related benefit is received
Pension accrual is only possible insofar as the member voluntarily continues the pension scheme.
Important points for attention:
The content of the pension scheme is important. It may be that the pension regulations need to be adjusted in order to make use of the above possibilities;
The pension administrator must agree to any amendment of the pension scheme regulations;
There is no obligation to continue the pension accrual in case of a part-time unemployment benefit;
inform the workers council or employee representation.
The payment of the pension contribution to the pension provider
It is of course possible that liquidity problems may lead to delay in the payment of pension contributions. What are the regulations.
The Pensions Act stipulates that pension contributions must be paid within 3 months of the due date. Additional agreements may have been made in the administration agreement with the pension administrator. Below we briefly outline the broad lines that apply to insurers and premium pension institutions (PPI).
– The pension administrator informs the participants directly if pension accrual is stopped due to payment delay.
– Pension accrual can actually be stopped 3 months after the participants have been informed.
Call us if there’s a payment delay. We will then consult the pension administrator and discuss the possibilities. Take action. The directors may be held liable.
The above shows the status as of 23 March 2020. Please contact us for the latest news.