You accrue pension

You accrue pension with PCN based on an average salary system. At the beginning of each year your employer submits your income of that year (pensionable salary) to PCN. The accrual of your pension is calculated over this salary. Once a year you receive a pension statement. Your pension statement shows what you have accrued and what you can accrue until your retirement date.

How do you accrue pension?

Each year you accrue a piece of your pension. That pension is based on your income of that year. All pieces of pension together will form your final pension. Each month that you work for your employer, you accrue a piece of pension over the pensionable earnings that apply to you in that month. Per year you accrue 1.71% of the pensionable earnings. This is 1/12th  (0.1425%) per month.

What is the pension base?

Pensionable earnings = Pensionable salary -/- offset.
The pensionable salary is your gross salary + allowances (for instance holiday allowance, Christmas or year-end bonus).
The offset is that part of the income over which you do not accrue pension as you are entitled to a state old age benefit as of the retirement age. Your PCN pension + AOV benefit should not exceed 70% of your income (upon 40 years of service).
The offset is determined each year, when the AOV amounts of that year are published.

Do you also accrue pension for your surviving dependents?

If you pass away, your partner will receive a survivor’s pension. This only applies to the partner you are married to or with whom you have a European registered partnership. If you have children, they can receive an orphan’s pension. Please read more at dependent’s and orphan’s pension.

Will my pension be increased?

The board of PCN aims to increase your accrued pension each year. This way your pension will increase with (the maximum of) the price inflation. The fund must have sufficient money available to achieve this. Please read more at indexation of your pension.