According to Dutch law, every person who is employed under a legal contract has compulsory pension and disability pension contributions deducted from their salary. In the country of the tulips, these are called Premie Volksverzekeringen. With this treatment, when the taxpayer reaches the age of 67, he or she becomes entitled to a pro rata Dutch pension known as the AOW benefit. Importantly, Premie Volksverzekeringen contributions cannot be recovered before the age of 67.
Instead, you can withdraw the contributions you have accumulated to the small STIPP and BPL pension fund – apply to us and we will recover the money for you!
Pension in the Netherlands – how does it work?
Every employee in the Netherlands has compulsory pension contributions deducted from their wages – the Premie Volksverzekeringen. As a result, when you reach the age of 67, you become entitled to a Dutch pension, the amount of which will depend on the current minimum wage in this country and the individual situation of the taxpayer.
The Dutch pension system consists of three basic pillars:
- AOW – basic pension (Algemene Ouderdomswet),
- employee pension schemes,
- individual pension schemes.
The main factor that influences the amount of the benefit paid is the time of residence and work in the Netherlands. For the calculation of the AOW, the last 50 years before reaching retirement age are taken into account – each year worked means an accrual of 2% of the benefit value. In the Netherlands, we will be entitled to a pension after only 5 years of work, but only 10% of the benefit value. In order to receive 100% of the basic pension in the Netherlands, it is therefore necessary to work the full 50 years.
In the Netherlands, the basic Volksverzekeringen premiums paid cannot be recovered or paid out before retirement age. However, some employees working in the Netherlands also have additional premiums paid by their employer for a small pension fund, the Pensioenfonds. Different rules apply to them – we have the option to redeem them.
Pensioenfonds – small pension fund
In the Netherlands, it is possible for an employer to contribute to a small pension fund, the Pensioenfonds. These types of funds are:
- StiPP – Stichting Pensioenfonds voor Personeelsdiensten,
- BPL – Bedrijfspensioenfonds voor Landbouw – pension fund for employees working in companies in the agricultural and organic sector.
- Flexsecurity pensioen,
- Nationale Nederlanden.
STiPP Netherlands – for whom is this pension plan designed?
The STiPP pension plan applies to any temporary or seconded employee employed in the Netherlands. This includes anyone employed in the Netherlands by an employment agency or payroll company.
STiPP offers employees two pension plan options: a basic plan and an enhanced plan. The basic plan is for temporary employees who are at least 21 years of age and have been employed for at least 8 weeks with one employer. (This does not have to be one continuous period). It is valid for a maximum of 52 weeks.
How to check STiPP contributions?
How do I check my pension contributions in the Netherlands? It is not difficult – accessing this type of information is very easy. We have the possibility to see the accumulated contributions in our individual account in two ways. Firstly, all the necessary information will be contained in the pension statement sent out once a year by the pension fund StiPP (Stichting Pensioenfonds voor Personeelsdiensten).
We can also consult the full pension statement on the website mijnpensioenoverzicht.nl. under ‘Mijn StiPP Pensioen’. The data available there is updated several times a year, so it is a good option for those who like to keep up to date.
Withdrawal of STiPP funds – when is it possible?
Monthly contributions to the supplementary pension fund in our individual account contribute to the accumulation of so-called pension capital in the StiPP. The money set aside from this is then invested – the contributions, together with the profit earned, produce a total pension capital that will transform into a lifetime pension when we reach the age of 67.
Early withdrawal of StiPP funds is possible if you meet two basic conditions:
- pension contributions do not exceed EUR 503.24 gross per year,
- 5 years have elapsed since the last employment contract with the Dutch employer.
How to recover pension contributions from the Netherlands?
The funds that will be accumulated in the Pensioenfonds can be recovered by redeeming the small pension fund from the Netherlands. Recovery is possible in two ways.
Single payment
You can do this provided that at least 2 years have passed since the date of your last employment in the Netherlands. At our law firm, you will get help with the procedure and with recovering your money.
Monthly allowance for life
If you want to receive extra money every month, you should wait until you reach the retirement age stipulated in the Netherlands, which is 67 as of today. However, you have to be aware that the amount of the supplement is usually very low and that it is not worth waiting for it to be paid out. You will find all the information you need about the projected amount of the supplement in a letter from the Dutch pension fund Pensioenfinds.
The procedure for recovering pension contributions from the Netherlands will vary depending on where you live. If you reside outside of this country, e.g. in Poland, you will have to submit an appropriate application for early payment of your pension capital. For those living in the Netherlands, STiPP will itself offer an early return of contributions.
How much does it cost to buy an annuity in the Netherlands?
We have already established that we can withdraw pension contributions in the Netherlands, now it is worth considering how much this will cost us. StiPP calculates a one-size-fits-all averaged contribution that is invested into your Capital – this amounts to 4.2%. No additional costs are deducted from the total amount.
If you decide to use the services of a tax office to recover your pension from the Netherlands, you will have to expect to pay for the service. However, these are not a lot of money considering the amount of refund you can receive.
Payment of pension contributions from the Netherlands – how to do it?
What is the easiest way to buy your pension from the Netherlands? Use the services of our tax office – by approaching us, you will receive comprehensive assistance in dealing with all the formalities. We will recover the contributions due to you as quickly as possible. We are at your disposal – we can handle all matters related to your tax return from the Netherlands and all other official matters. We have qualified and experienced staff who are well acquainted with the current regulations of the European Union countries – you can trust us!
Contact us and state your case in the form. We will be happy to help you recover your STIPP insurance premiums. We welcome you – borsukpodatki.pl
