New PME/PMT pension arrangement for 2015 Highlights The

New PME/PMT pension arrangement for 2015
Highlights
The ageing population trend has given rise to new government rules for Dutch pension funds.
Another objective of these rules is to make pension funds better able to cope with fluctuations on
financial markets. As a consequence, in short: people will have to work a little longer to get the same
pension.
Representatives of employers and employees (the ‘social partners’) in the mechanical & electrical
engineering and metalworking sectors have reached agreement on a uniform arrangement for
pension funds PME and PMT. This will make changing jobs within the two sectors easier.
The new scheme comes into effect on 1 January, 2015.
These are the highlights:
• The pensionable age goes up in stages to 67 (by approximately 2022), in line with the state
retirement pension (AOW). But early retirement will remain possible.
Accrual
• The yearly pension accrual rate will be 1.875% (1.90% in 2014) of pensionable salary.
• Your pension continues to accrue until you reach state pension (AOW) age.
• Your pension in the basic scheme can continue to accrue up to € 70,000 (€70,792 in 2014).
• There is no pension accrual above € 100,000. This applies to all pension funds. So if you
participate in the supplementary PME scheme, you accrue pension over your salary from
€ 70,000 up to a maximum of € 100,000.
• The earnings threshold (above which you start paying PME contributions) will be lowered
slightly. You will start to build up pension over a larger part of your salary.
• The accrual rate for dependants’ pension goes down to 50% (was 70%). If you leave the
PME/PMT sector the additional 20% insured portion expires.
• The value of your accrual up to 2015 remains unchanged; this applies to both retirement and
dependants’ pension entitlements.
Indexation
If the financial situation of PME allows, we raise pensions in line with the price inflation index. This
applies to both pensioners and active employees. Before 2015 we tracked the price index in wages
for employees. Due to the more stringent government rules indexation becomes much more
difficult.
Contributions
• Contribution levels have been agreed on for five years. There will be no increases and no cuts
during this period.
• Any surplus in contributions will be deposited in a separate account.
• When in any year contributions do not cover total accruals, the separate account will be used to
offset the shortfall.
• If in any year contributions do not cover total accruals and there is insufficient credit on the
separate account, the pension accrual rate for that year will be lowered.
• If there is a substantial surplus in the separate account for a period of years the pension fund
governing board may decide to grant (extra) indexation to employees.
Dependants’ pension
• 20% of dependants’ pension is insured. This insurance remains valid as long as you are still
employed in the PME/PMT sectors. If you leave the sector you only keep the accrued portion of
your dependants’ pension.
• Please note! The pension accrual limit of € 100,000 also applies to your dependants’ pension.
From January 2015 onwards the maximum dependants’ pension is 70% of your attainable
retirement pension. This could mean a serious setback in income for your dependants.
New financial rules
Two important points about the new government rules:
1. The probability of a sharp pension cut is reduced. If a cut becomes necessary, the reduction will
be spread over a longer period.
2. Tighter rules will apply to the conditions under which pension funds can raise pension levels.
That reduces the chance of your pension being adjusted for inflation.

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