Pension exchange is working out well
By exchanging part of her pension for a survivor's pension, Charlotte leaves her partner well cared for when she dies.
Picture: Type tank
Charlotte became incapacitated for work on 5 August 2017. Despite the best efforts of both her employer and Charlotte herself, things are not going well for her. Charlotte is therefore called up for an examination by the UWV after about two years of sick leave. The UWV is of the opinion that she is permanently and permanently incapacitated for work. That is why she receives an IVA benefit. The abbreviation IVA stands for Income Provision for Completely Disabled Persons and is part of the WIA Act.
Termination
A benefit on the basis of the WIA Act does not automatically lead to dismissal. Charlotte can only be fired if the employer applies for a permit at the UWV. Another option that often occurs is the settlement agreement, termination of employment in joint consultation.
Because Charlotte is only two years before her state pension date, she asks the legal service of the AOb whether she can start her ABP pension before she is fired. In view of her health situation, Charlotte is considering exchanging part of her retirement pension for a higher partner's pension (survivor's pension), so that her husband will in any case not have financial worries if she dies.
That is possible, the legal service replies, even now that she has been awarded an IVA benefit. In order to make the exchange possible, the pension must start no later than the date of dismissal. After all, it is not possible to retire from the IVA benefit alone, which means that there is no option to exchange.
Powered
As mentioned, Charlotte wants to leave her husband well cared for in the event of death. She wonders exactly how much pension she should take out in order to be able to exchange the highest possible amount for the survivor's pension. After all, she already has an IVA benefit and does not now have to claim her full pension. The legal service of the AOb let her know that she normally achieves the highest possible trade-off when she takes full retirement. In the event of partial withdrawal of the pension, only a partial exchange can take place. However, her situation is different. Since she has already reached the age of 65, a partial withdrawal of her pension will suffice. If she then opts for an exchange, everything is automatically exchanged.
Proposals
Charlotte is advised to request quotations from ABP. She requests a quote for a 10 percent pension. This shows that if she chooses to exchange for the survivor's pension, her retirement pension from her state pension age will be 4000 euros lower per year. On the other hand, in the event of her death, the survivor's pension for her partner will be 16000 euros higher per year. Charlotte chooses to use the ABP quotation because it allows her to leave her partner well cared for.
Because the outcomes can differ per person, the legal department advises AOb to always request quotes from ABP, so that a well-considered choice can be made.
