Defined contribution scheme

The amount of the pension depends on the contributions paid and the return on investment. With a defined contribution scheme, employees accrue pension capital. They buy a pension with this capital.

We invest the pension capital for employees, using lifecycles. This means that the older the employee, the lower the risk of the investments that we make for them.

The employees can also make their own choices regarding how we invest for them.

Choice between a stable and a variable pension

Choice for a stable pension

Employees with a defined contribution scheme can buy pensions from 10 years prior to their retirement date in 10 annual steps. They then buy a stable pension from Pensioenfonds PGB. This is a pension with the ambition to increase it (indexation), but with a risk of reduction (cuts). Increases are possible in a favourable financial situation, while cuts are necessary if the financial situation is very poor.

Choice for a variable pension

Ten years before their retirement date, employees can also opt to continue investment of their entire capital in order to be able to buy a variable pension from a different pension provider on their retirement date. They then buy a pension the level of which fluctuates in line with the investment results. It may be higher or lower every year. It is possible to still buy a stable pension from Pensioenfonds PGB in the meantime, or shortly before the retirement date.

Please note: this option only applies for employees who reached the age of 58 from 2020 or who became participants in our pension fund in or after 2019.

Choice of an investment profile

In this scheme, the employee can choose their own investment profile. They can choose to invest defensively, neutrally or offensively. The choice that the employee makes determines the amount of risk that they take. It also determines their chances of a higher pension.

We help employees to make a choice that is suitable for them. We have developed a choice advice tool for this purpose. We will provide employees with information on this. If the employee does not make a choice, we invest in accordance with a ‘neutral’ investment profile. If the employee does make a choice, we ask them to check this choice again every year, as it is possible that something may have changed in their personal situation, as a result of which a different profile may be more suitable for the employee.

The ultimate amount of the pension depends on:

  • The pension contributions paid;
  • The investment return that we realise;
  • The investment choice that your employee makes;
  • The purchase rates that apply when the pension is purchased.
This is also included in the scheme
​partner pension ​: a maximum of 70% of the retirement pension
​orphan's pension ​: 20% of the retirements pension
​non-contributory building up ​: with invalidity
​lifecycle ​: the older the employee, the lower the investment risk