Glossary

The age chosen by the (former) participant at which the old-age pension will actually take effect. This will be before, on, or after the retirement date and no later than five years after the (former) participant has reached the AOW age.

General Old Age Pensions Act. The AOW is a basic state pension provided by the government. Everyone who has reached AOW age and lives or has lived in the Netherlands is entitled to this pension. The AOW pension is paid out by the Social Insurance Bank (Sociale Verzekeringsbank, SVB) You can find more information about the AOW on www.svb.nl.

See part-time percentage

The person who is entitled to the benefit from the pension insurance.

A Pension Agreement whereby the participants know the exact amount of the pension benefits to which they are entitled in advance. The amount of these pension benefits is guaranteed. The total amount of contributions needed in order to be able to pay the pension benefits cannot be indicated in advance.

The child with whom the participant has a family relationship before the retirement date, as described in Book 1 of the Dutch Civil Code; and/or the participant's stepchild or foster child, who is permanently supported and raised by the participant as if they were their own child until the participant's death. The maintenance and upbringing must have begun before the retirement date and the foster child must have been reported to the employer in writing by the participant; the child in question is under 21 years of age, or is studying under the Student Finance Act 2000 and under 27 years of age.

The day(s) in a calendar year on which (a part of) the annual contribution due and the costs of the pension insurance must be paid.

See part-time percentage

The customer profile consists of a number of questions that the (former) participant must answer. This allows the insurer to identify what the (former) participant’s objectives, financial situation, risk appetite, knowledge and experience are for this pension insurance. On the basis of the customer profile, the insurer can assess what is the right balance for the (former) participant between the probability of a good return and the investment risk.

The date on which the amount of the pension entitlements and the pension contributions for the participants is annually determined. This takes place based on the age of the participants, the pensionable earnings, the part-time percentage, the tariffs and the implementation costs for the scheme that are applicable at the time.

A year calculated from the cut-off date until the following cut-off date.

The contribution that the employer makes towards the accrual of the pension capital.

An agreement in which it is determined in advance how high the pension contributions paid by the employer for each participant will be. The (former) participants do not know in advance how high their pension will be. The pension contributions are invested in order to accrue pension capital, which participants will use to purchase pension benefits.

The termination of the marriage, legal separation and the termination of the registered partnership, for reasons other than death, because a person is missing or conversion to another form of marriage or joint household with the same partner.

A written agreement with the purpose of recording agreements regarding the termination of the marriage or registered partnership.

The person who under civil law has an employment contract with the employer, with the exception of the managing director/majority shareholder as referred to in Article 1 of the Pensions Act.

The age at which an employee may start participating in the pension scheme according to the Pension Regulations.

A man or woman who has accrued pension entitlements under the Pension Regulations but no longer participates in the pension scheme due to a reason other than death or having reached the actual retirement date.

The man or woman whose marriage with the (former) participant or pensioner has ended through divorce, or the man or woman whose joint household with the (former) participant or pensioner has ended for reasons other than death, because the partner was missing or due to entering into a marriage with the same partner through which a joint household was formed.

The part of the salary over which no contributions are calculated and no pension is accrued.

An investment option offered by the insurer.

The fund manager incurs costs for managing the funds. The fund costs are comprised of the management fee for the fund manager and other fund charges. Examples of other fund costs include costs for reporting and accountants as well as bank costs and marketing costs. All these expenses are settled within the fund itself. The costs are therefore incorporated into the price and as such into the realised return.

The investment return achieved by a fund, without taking into account the fund charges.

The historical return of a fund is the average of the fund’s actual return over the previous 20 years. If a fund has existed for less than four years, the Dutch Authority for the Financial Markets (AFM) will determine what return the fund may use as historical return. The historical return is a gross return.

The agreement between the employer and the insurer about the implementation and financing of the Pension Agreement.

For the question whether someone is (partially) incapacitated for work, the insurer will follow the assessment given by the UWV (Employee Insurance Agency), who will apply the Work and Income (Capacity for Work) Act (WIA). According to the WIA, a person is incapacitated for work if he is unable to perform normal work due to illness or disability. You can find more information about incapacity for work on www.uwv.nl.

Scildon N.V.

The ratio in which amounts are added to or withdrawn from the funds. This ratio is first established by the insurer when the participant registers via Scildon Online Pensions. The investment ratio is then equal to the strategic investment mix.

The account on which the number of units per fund are stored for the pension insurance.

A household held by the (former) participant for at least six consecutive months with one partner at the same address. The (former) participant and the partner must be able to demonstrate this via the Personal Records Database (Basisregistratie Personen, BRP). The partner may not be a blood relative or related to the (former) participant through the direct line or in the second degree.

The defined contribution is promised in the form of a level premium scale. This means that the defined contribution percentage is a fixed percentage, and will not change as the participant gets older and moves on to the next age group. The scale is divided into five-year age groups. If the insurer continues paying the defined contribution throughout a waiver of premium in the event of disability and the participant in question moves to the next age group, the contribution paid by the insurer will not be increased but will continue to be a fixed contribution percentage.

This is one of the insurer’s methods of investing. Investments are made for each participant or former participant according to an investment schedule. In this schedule the ratio between the different investment categories, such as shares and bonds (i.e. the strategic investment mix), is continually adjusted over time, taking into account the number of years that the defined contributions and pension capital already accrued are still able to yield returns (the investment horizon). This creates a responsible balance between the chances of a good return and the level of investment risk. If it will take a long time before the (former) participant reaches the retirement date (long-term investment horizon), then more risk will be taken with the strategic investment mix. This increases the chance of a higher return, and there will still be time to absorb and make up for any disappointing returns. The shorter the period before the retirement date (short-term investment horizon), the less investment risk will be taken in order to reduce the chances of a disappointing return. This means there will be a smaller chance of seeing higher investment returns. Scildon is responsible for compiling an investment scheme that contains a good balance between return and risk and for the implementation thereof. However, Scildon is not responsible for the final investment results. Disappointing investment results are borne by the participants, just as good investment results.

Fees charged by the insurer to the (former) participants for the administration, reallocation and rebalancing of the investments. The management fees are deducted from the pension capital and are expressed as a percentage of the fund value.

Marriage and registered partnership.

The maximum permitted defined contribution as described in Chapter IIB of the Salaries Tax Act 1964.

The number of units present per fund that are present in the investment trust, multiplied by the price of each fund. The monetary value is expressed in euros.

A reimbursement that the (former) participant receives from the insurer for risk that the pension capital will not become payable or fully payable. Negative risk contributions are converted into units and added to the investment trust.

This is the return that the (former) participants achieve through their investments in the funds. It is calculated by subtracting the insurer’s fund costs and management fees from the gross return achieved by the fund.

The ratio between the number of hours worked as agreed with the employer and the working hours. The actual part-time percentage is the part-time percentage of the year in question. The average part-time percentage is the part-time percentage from all years of service divided by the number of years of service.

The employee who obtains pension entitlements according to the Pension Regulations.

The date on which a participant starts obtaining pension entitlements according to the Pension Regulations.

The partner is the spouse or registered partner of the (former) participant; or the person with whom the (former) participant shares a joint household. Each participant can only have one partner.

The marriage, registered partnership or joint household.

The person who advises the employer on the pensions of his employees.

The agreements between the employer and the employee over the pension as part of the employment conditions.

Person who is the beneficiary of a pension that has not yet commenced.

The capital that is created by the defined contributions paid and any voluntary own contributions, as well as the (positive and negative) product return achieved on this. This capital is not paid out, but is only used to purchase an old-age and/or a partner’s pension for in the event of death after the retirement date. The amount of the pension capital is equal to the monetary value.

The contributions and the costs that are owed for the pension insurance.

The entitlement to a pension that has not yet commenced.

All rights and obligations of the insurer, employer and (former) participants arising from the Scildon Pension Insurance Terms and Conditions, the applicable Pension Agreement, the Pension Regulations, the Implementation Agreement and the relevant laws and regulations.

Right to a pension that has already commenced.

The pension scheme drawn up by the insurer in which the content of the Pension Agreement and the rights and obligations between the (former) participants and the insurer are detailed.

The pension scheme can consist of one of two types: defined contribution agreement and benefit agreement. The type of scheme determines who bears the financial risk if the pension expectations are not fulfilled: the employer, because he has to pay more contributions (in the case of a benefit agreement), or the employee, because he receives lower pension benefits (in the case of a defined contribution agreement).

Person for whom a pension has commenced based on a Pension Agreement.

The pensionable salary minus the franchise. If the participant works less than the full working hours, the pensionable earnings will be multiplied by a part-time percentage.

The part of the salary over which you accrue pension. The pensionable salary can never exceed the statutory maximum. No pension entitlements are obtained over the salary that is higher than this amount.

An estimate of the gross return to be achieved if the investment results are disappointing in the long term. The pessimistic return is determined by the AFM.

The net return plus negative risk premiums.

The projected capital is the estimated pension capital that will become available on the pension date if the participant participates until the pension date. This is based on stable pensionable earnings and defined contributions in correspondence with the premium scale. The weighted average product return must also be achieved every year throughout the entire term. Because these principles may deviate from the actual development of the pensionable earnings and the product return, the pension capital that becomes available on the retirement date may be higher or lower than the projected capital.

Proof of the insurance of the (former) participant’s pension entitlements. The (former) participant receives the proof of participation from the insurer.

The official opening rate or issue rate that applies to units of the fund on the value date.

Adjusting the strategic investment mix to the Managed Investing investment schedule.

Because the prices of units can change, the composition of the investment portfolio may deviate from the Managed Investing investment schedule’s strategic investment mix (skewed growth). The investment mix will then be brought back within the bandwidth of the strategic investment mix by the insurer.

The registered partnership is considered the same as marriage in these pension regulations.

The first day of the month in which the (former) participant reaches retirement age.

The defined contribution is promised in the form of an age-dependent, rising premium scale. This means that the defined contribution increases as the participant becomes older and moves on to the next age group. The scale is divided into five-year age groups. If the insurer continues paying the defined contribution throughout a waiver of premium in the event of disability and the participant in question moves to the next age group, the contribution paid by the insurer will also be increased.

In the pension scheme, risk insurance refers to: the partner's pension in the event of death before the retirement date; the orphan's pension in the event of death before the retirement date; the Anw shortfall pension; waiver of premiums in the event of disability. The risk insurance will pay out should the participant die or become disabled. The risk insurance will expire at the end of the participation (for reasons other than death or disability).

A shielded and secured part of the Scildon website, which contains information about the pension insurance. This website can be accessed by the employer, (former) participant and pension adviser with a pension scheme with the insurer using unique login details.

Information about the funds that the insurer draws up at the end of a calendar quarter. This includes the fund costs and the management fees per fund. The most recent version of the Scildon Pension Fund Information can be found on Scildon Online Pensions.

The general insurance conditions, investment conditions and conditions for insurance of waiver of premiums in the event of incapacity for work that apply for the pension insurance.

See Divorce

The ratio in which investments are made in the various investment categories, such as shares, bonds and the money market. The Pension Regulations determine whether the strategic investment mix is determined according to the Managed Investing investment scheme or whether the (former) participant himself selects the strategic investment mix.

A trading day is any day on which the insurer is open. This is every working day of the year, with the exception of the general public holidays in the Netherlands, including Ascension Day and Good Friday. Euronext Amsterdam and the banks in the Netherlands must also be open for carrying out or having carried out transactions in financial instruments. The manager of the investment institution involved in the transaction must also be present, and foreign stock exchanges and banks that are relevant to the investment institution must be open for carrying out or having carried out transactions in financial instruments.

The Uniform Pension Overview lists the pension entitlements of the (former) participant, his/her partners and his/her children as well as the estimated pension rights on the retirement date if the participant remains employed by the employer until that date. Participants receive an annual UPO from their current pension provider. Former participants receive a UPO from the pension administrator(s) of the former employer(s) every year. All pension administrators use the same pension statement with the same format, so that pension entitlements from different pension administrators can easily be added together. This allows (former) participants and their partners and children to have insight into the eventual amount of the pension benefits upon retirement, termination of employment, disability or death. A pension statement can also be consulted at www.mijnpensioenoverzicht.nl (in Dutch).

The number of units in a fund, accurately calculated to three decimal places.

The time at which the price of units is determined. This is the first trading day following the day on which an order to purchase or sell units is issued, allowing for the period of time needed for the fund to process the purchase or sale order. The latter period will be described in the respective funds’ trading systems. The funds’ trading systems are detailed in Scildon Pension Fund Information.

De Ruiter, Model 3: this is a numerical overview through which the participant is informed once a year about what has happened with his deposit. The participant sees how much was contributed in the previous year to his old-age pension and the partner's pension for after the retirement date, how much return he has achieved on his investments, what costs were deducted from this by the insurer, how many negative risk premiums he has received and how much the pension capital was at the end of the previous year. Since 2020, the value overview is part of the UPO, and Scildon no longer sends it separately.

The waiting period for the Work and Income (Capacity for Work) Act is 104 weeks.

When calculating the projected capital, the insurer takes into account the investment schedule in accordance with the 'Managed Investing' method. The weighted average product return shows an estimated return on investments in the funds. This takes into account the different ratios between the different returns of the funds in which a (former) participant invests until the planned retirement date.

The usual number of hours worked for the employer based on full-time employment.

The number of years and whole months between the last of the following dates: the date of employment/the pension entry date and the retirement date; or the number of years and whole months between the last of the following dates: the start date of the pension scheme/the date of employment/ the pension entry date and the retirement date or, upon early termination of employment, the date on which the employment contract is terminated; and the notional years of service due to incoming (collective) value transfer. If and so long as the participant is exempt from making contributions due to disability, the years between the date on which the employment contract is terminated and the planned retirement date will also count as years of service.