AOW (General Old Age Pensions Act)

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

Pension beneficiary

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

Current part-time percentage

See part-time percentage

Incapacity for work

For the question of 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 according to Labour Capacity 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


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

Managed Investing

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.

Management fees

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.

Investment trust

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

Investment ratio

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.

Occupation group A

Administrative professions are included in occupation group A; the insurer will assess whether the profession in question is administrative. On Scildon Online Pensions, the insurer has indicated which of the most common professions belong to occupation group A or occupation group B in ‘Scildon Pension’s Profession List’.

Occupation Group B

Occupation group B includes professions of light or heavy physical intensity. The insurer will assess whether the profession is considered to be physically intensive. On Scildon Online Pensions, the insurer has indicated which of the most common professions belong to occupation group A or occupation group B in ‘Scildon Pension’s Profession List’.

Defined contribution

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

Gross return

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

Proof of participation

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


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

Years of service

The number of years and whole months between the date of employment and the retirement date; or the number of years and whole months between either the start date of the pension scheme, the later date of employment 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.


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.

Divorce Covenant

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

Maximum permitted contribution for tax purposes

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


An investment option offered by the insurer.

Fund costs

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.

Scildon Pension Fund Information

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

Monetary value

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.

Joint household

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 Municipal Personal Records Database. The partner may not be a blood relative or related to the (former) participant through the direct line or in the second degree.

Average part-time percentage

See part-time percentage

Registered partnership

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

Former participant

De man of vrouw die pensioenaanspraken op grond van het Pensioenreglement heeft opgebouwd, maar niet meer deelneemt aan de pensioenregeling door een andere reden dan door overlijden of het bereiken van de werkelijke pensioendatum.

Former partner

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.

Weighted average product return

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.

Trading day

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.


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.

Historical return

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.


Marriage and registered partnership.

Pension scheme type

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 it of a benefit agreement), or the employee, because he receives lower pension benefits (in the case of a defined contribution agreement).

Customer profile

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

Value date

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.

Scildon Online Pensions

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.

Negative risk contributions

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.

Net return

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


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.

Partner relationship

The marriage, registered partnership or joint household.

Part-time percentage

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.

Cut-off date

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.

Cut-off year

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

Pension entitlement

The entitlement to a pension that has not yet commenced.

Pension adviser

The person who advises the employer over his employees’ the pensions.

Retirement date

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


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

Pensionable salary

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.

Pensionable earnings

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.

Pension capital

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.

Pension costs

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

Pension agreement

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

Pension rights

Right to a pension that has already commenced.

Pension scheme

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.

Pension insurance

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.

Pessimistic return

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.

Defined contribution agreement

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.

Contribution due date

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.

Product return

The net return plus negative risk premiums.

Risk insurance

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).


See Divorce

Rising premium scale

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.

Level premium scale

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.

Participation start date

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

Strategic investment mix

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.

Entry age

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

Implementation agreement

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

Benefit agreement

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.

Uniform Pension Overview (UPO)

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) at least once every five years. 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 (in Dutch).

Relative return

The relative return is a gross return of 4% as prescribed by the AFM. Every insurer that offers investment products must show projected capital on the basis of this return.


Scildon N.V.

Scildon Pension Insurance Terms and Conditions

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.

Projected capital

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.

Value overview

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.

Waiting period

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

Actual retirement date

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.


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.

Working hours

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