Your former partner will choose between a fixed or a variable pension
The choice your former partner makes will also apply to the part of the pension that you receive.
In early 2027, your former partner will make an important choice:
- A variable pension with SSPF; or
- A fixed pension with an insurer of their choice.
This choice also applies to the part of the pension that you have been receiving since your former partner retired. You cannot make this choice yourself and therefore do not need to take any action. Of course, we will inform you once your former partner has made their choice.
How does this work?
On 1 January 2027, SSPF will switch to the new scheme. A fixed benefit with indexation, as currently offered by SSPF, can no longer be offered. Under the new scheme, your benefit will continue as a variable pension. The amount of the benefit you currently receive will be the starting point for the variable benefit under the new scheme.
In spring 2027, your former partner will choose between a variable pension with SSPF and a fixed pension through an insurer. If your former partner chooses a fixed pension, their pension capital will be transferred to an insurer of their choice. The part of the pension allocated to you will be transferred as well. If your former partner chooses a variable pension, you will remain with SSPF.
What is a variable pension?
If your former partner chooses a variable pension, you will continue to receive your pension from SSPF as usual. You will receive benefits from the Collective Variable Pension (CVP). This is a shared pension fund in which retirees share certain risks collectively. This shared pension fund is invested by SSPF with the aim of increasing benefits over time. SSPF determines the investment approach based on the preferences and characteristics of the overall group of retirees.
How does it work?
- The pension benefit you currently receive will be the starting point for your variable pension benefit under the new scheme.
- When SSPF moves to the new scheme, SSPF's current reserve will be distributed. As a result, your pension benefit will increase from July 2027. Read more about distribution of the buffer.
- Within the CVP, pensioners share certain risks with one another. The collective pension pool does not 'run out'.
- SSPF invests the collective pension pool with the aim of increasing pension benefits over time.
- Pension benefits are adjusted each year based on investment and other financial results. These adjustments are expected to be positive more often than not. However, if results are disappointing, an adjustment may also be negative. To help keep annual changes in pension benefits as stable as possible, results are spread over a number of years.
- In addition, we have established a risk-sharing reserve. This reserve is intended to help prevent unexpected reductions in pension benefits during the first 15 years after the move to the new pension arrangement.
- There is a strong likelihood that this reserve will still exist after those 15 years. As long as the reserve is available, your pension benefit will not be reduced. Your pension benefit can still increase when financial results are positive.
- If your former partner passes away, you will no longer receive the part of the pension that is linked to your former partner's retirement pension. You receive this part only while your former partner is alive. From that point onwards, you may be entitled to a variable partner's pension from SSPF. Whether this applies depends on the arrangements that were made when you and your former partner divorced.
What is a fixed pension?
Your former partner can also choose to convert the pension into a fixed pension benefit with an insurer of their choice. This provides certainty about the amount that will be paid.
How does it work?
- If your former partner chooses a fixed pension, their pension will be transferred to an insurer of their choice in July 2027. This includes the part of the pension allocated to you. As a result, both you and your former partner will leave SSPF and become a member of the insurer chosen by your former partner.
- Before the transfer to the insurer takes place, you will receive your share of the increase resulting from the distribution of SSPF's reserve. This amount will be added to the pension capital.
- Your former partner will use this pension capital to purchase a fixed pension benefit from the chosen insurer. This provides certainty about the amount you will receive for the rest of your life.
- A fixed pension benefit generally does not increase in line with rising prices (inflation). If inflation rises, the purchasing power of a fixed pension benefit may fall, unless your former partner makes other arrangements with the insurer.
- From the end of July 2027, you will receive your pension benefit from the insurer.
- The choice of a fixed pension with an insurer applies only to the part of the pension that you currently receive through your former partner. It does not apply to any partner's pension that you may become entitled to if your former partner passes away.