A
Actuarial and Operating Memorandum (ABTN).
This is a business plan describing the overall operation of the pension fund. The ABTN contains the policy on all related aspects of operations, funding policy and risks.
Redemption
With commutation, we pay out an accrued pension in one lump sum. This is possible for smaller pensions of several hundred euros per year. As soon as commutation is an issue for you, we or – in the case of a value transfer – your new pension fund will contact you.
General Survivors Act (ANW).
Government benefit for a widow or widower. Intended to supplement other income. More info at Social Insurance Bank (SVB).
General Old Age Security Act (AOW).
From your AOW age you will receive AOW from the government. When you receive AOW depends on your date of birth. How much you will receive also depends on your situation. Would you like to know more? Visit the website of the Social Insurance Bank (SVB).
Financial Markets Authority (AFM).
The AFM (www.afm.nl)) monitors how pension funds communicate and whether they comply with the rules.
Disability
When you are unable to work in whole or in part over an extended period of time because of physical or psychological symptoms.
B
Investment Guide
This will help you find out which investment profile suits you best. You can communicate your choice of profile directly online to SPIN. You can also switch investment profiles through the Investment Guide, formerly called Profile Guide, in My SPIN.
Policy funding ratio
The average of funding levels over the past 12 months. The SPIN Board uses these as a guide when granting the annual surcharge on DB pensions.
Benchmark
Comparison measure (e.g., the AEX index) against which investment returns are measured.
Defined contribution plan
Other word for DC plan. Defined Contribution plan in which you build up a pension capital. SPIN invests this capital for you. At retirement, you use this capital to buy a pension from an insurer. With this scheme, you know how much you and your employer pay for your pension, but not how high the benefit will be later.
Special partner’s pension
Death benefit for the ex-partner.
C
Pension Fund Code
The Code focuses on the three functions of “good pension fund governance”: managing, supervising and accounting for what the pension fund has planned and achieved.
Collective value transfer
Collective value transfer is the transfer of pension assets of a predetermined group of (former) employees to a new pension plan or fund at the request of the employer.
Consumer price index (CPI).
Central Statistical Office figure that indicates how much prices have risen over a given period. There are several variants; most common are the “normal” and “derived” CPI. SPIN uses the ‘normal’ CPI for calculating the annual indexation for Scheme 1 and the ‘derived’ for Schemes 2 and 3.
D
DB pension
DB stands for Defined Benefit. Each year you accrue a piece of pension based on your pensionable income.
DC capital
Pension capital you accrue in a DC plan. DC stands for Defined Contribution. SPIN invests this capital for you. At retirement, you buy a pension with your DC capital. With this plan, you know how much you are paying into your pension now, but not exactly how high the benefit will be later.
DC plan
DC stands for Defined Contribution. Scheme in which you build up a pension capital. SPIN invests this capital for you. At retirement you buy a pension with your DC capital. With this scheme you know how much you are paying into your pension now, but not exactly how high the benefit will be later on. A DC plan is also called a “defined contribution plan.
De Nederlandsche Bank (DNB).
Organization that supervises financial institutions such as banks, insurers and pension funds. Website: www.dnb.nl.
Participant
Employee who accrues his/her pension in one of IBM’s or Kyndryl’s pension plans. A former participant is a former employee who has left his/her pension with SPIN.
Defined Benefit (DB).
Type of pension plan. Each year you accrue a piece of pension based on your pensionable income.
Defined Contribution (DC).
Scheme in which you build up a pension capital. SPIN invests this capital for you. At retirement, you buy a pension with your DC capital. With this plan, you know how much you are paying into your pension now, but not exactly how high the benefit will be later. A DC plan is also calleda “defined contribution plan.
Coverage ratio
Indicates the extent to which a pension fund has enough money to pay current and future pensions.
E
Engagement
Engagement is addressing companies on agreed criteria on responsible investment. The criteria are based on recognized principles and conventions in the areas of human rights, environment, working conditions, anti-corruption and responsible investment and governance.
F
Factor A
Annual accrual of your pension. You can find this amount on your pension statement.
Franchise
Amount over which you do not accrue a pension. The deductible is derived from the amount of AOW benefits. The amount is also shown on your annual pension statement and on this website. See also pension base.
G
Joint housekeeping
You are officially living together if any of the following situations apply to you:
- You drew up a contract together at the notary.
- Before you died, you both signed a statement saying that you lived together and cared for each other.
- After your death, there is a statement signed by you and your (former) partner saying that he/she was the your partner. Also, your (ex-partner)) must be able to show that you lived together for at least 6 months at the time of death or before. This can be done by:
- You have had a child together or one of you has acknowledged the other’s child.
- You owned a house together.
- You had a lease in both names.
- In your (former) partner’s pension plan you were included as your partner.
I
Indexation
Same as supplement or surcharge.
Boarding
Converting existing rights and entitlements to the new pension plan under the Future Pensions Act (Wtp). This means that the new rules will also apply to existing rights and entitlements.
L
Annuity
You buy an annuity from an insurer. You pay a certain amount now, and you receive an agreed-upon monthly payment from an agreed-upon date in the future (e.g., your retirement date). Annuity payments are normally not compensated for inflation. If you prove a pension gap to the tax authorities, your annuity premiums are tax deductible. See also factor A.
M
Average Pay Plan
Pension plan in which the amount of the pension depends on the average salary earned. Each year you accrue a piece of pension based on that year’s pensionable income.
O
One tier model
Governance model where policy-making and supervisory directors sit together with executive board members on one board.
P
Partner
The participant’s spouse or registered partner, or the person with whom the participant has entered into a cohabitation agreement and who is registered with us as a partner. Or the person with whom you maintain a joint household.
Partner’s pension
Pension your partner may be entitled to when you die. Check MySPIN for the amounts.
Pension Gap
Also called pension gap. The difference between the pension rights you have accrued and what you are allowed to accrue tax-deductibly. The latter is based on a certain standard of what constitutes a “good pension. In the Netherlands, that standard is approximately 1.875% of pensionable earnings per year of service, based on 40 years.
Retirement
Someone who receives a pension.
Pensionable income
Your pensionable income is the starting point for accruing your pension. It consists of your salary, half-year benefits, shift bonuses and sometimes bonuses. You accrue pension (capital) over your pensionable income minus the deductible: this is your pension base.
Pension base
That part of your salary on which you actually accrue pension (capital). It consists of your annual pensionable income minus the so-called deductible. The deductible is reset every year. DB and DC pension plans each have their own pension base. You can find your basis on your annual pension statement and in MySPIN.
Pension capital
Same as DC capital, capital you accumulate in a DC plan. DC stands for Defined Contribution. SPIN invests this capital for you. At retirement, you buy a pension with your DC capital. With this plan, you know how much you are paying into your pension now, but not exactly how high the benefit will be later.
Pension Agreement
Contingency agreements between employers and employees regarding pensions. Depending on the type of plan, at SPIN this is a: – benefit agreement (for DB plans)or a contribution agreement (for DC plans).
Pension Planner
Do you want to know how much pension you will receive later from SPIN? And whether this is enough to make ends meet? With the Pension Planner in My SPIN you can easily check this. You can also calculate what pension choices will affect the amount of your pension. For example, if you retire early.
Pension liabilities
The amount of money a pension fund must have at its disposal to ensure that all pensions can be paid now and in the future.
Pension provision
The amount of money a pension fund must have at its disposal to ensure that all pensions can be paid now and in the future.
Pension Act
This law applies to all pension funds in the Netherlands. Its purpose is to safeguard pension agreements. Furthermore, the Pension Act regulates the supervision of pension funds and pension insurers by DNB and AFM.
R
Yield
The positive or negative result on investments. On average, stocks provide higher returns but also carry more risk. Bonds have less risk but are also expected to deliver lower returns.
S
Scenario set
A scenario set contains possible futures (also called paths), modeling financial-economic developments in interest rates, equities and inflation in conjunction.
T
Surcharge
Also called indexation. With pensions held constant, less can be bought over time as prices rise. To grant a supplement is to adjust from time to time the already accrued DB pension to the general rise in prices. Indexation is conditional. SPIN must have sufficient financial resources to grant the supplement. This does not apply to Surcharge Scheme 3, which is unconditional.
U
Implementation Agreement
Agreement between employer(s) and pension administrator on execution and financing of pension agreement.
UN Global Compact
The United Nations Global Compact consists of ten principles around human rights, labor rights, environment and anti-corruption for international companies that wish to operate in a socially responsible manner. These principles are an important guide in SPIN’s investment policy.
Uniform Pension Statement (UPO).
An overview of the accrued pension (capital). In the Netherlands pension providers all send the same UPO’s. You can add the different UPOs together for a total picture of your pension. See also mijnpensioenoverzicht.nl.
V
Asset Manager
A professional asset manager for organizations such as pension funds, insurance companies and/or high net worth individuals. Wealth managers are often part of a bank or financial institution, but can also be an independent organization.
W
Value Transfer
Transferring individual pensions from one pension administrator to another.
Work and Income according to Labour Capacity Act(WIA)
Benefit from the government that you can apply for when you have been disabled for more than two years.
Future Pensions Act (Wtp).
The aim of the Future Pensions Act (Wtp) is to make the system more balanced, flexible, personal and transparent. In the new system, everything revolves around the value of the premium paid in on the retirement date, rather than a pre-committed benefit.
Z
Duty of Care
Duty of care in pension funds refers to the obligation to act in the interest of the participant. And on providing timely and accurate information. The purpose of pension legislation is to ensure that participants in a pension plan can be assured that it will be implemented properly and that they can count on a certain degree of financial security.