Pension glossary

A Factor
The pension benefit accrual in a calendar year.

Accrual percentage
This is your annual pension accrual in percentage of the pension base.

Accrued pension
This is the amount of annual pension accrued by you until 1st January of this year. Suppose your participation terminated on 1st January of this year, this is the benefit you can expect when you retire. If your participation continues, you continue accruing pension in this pension plan. Your pension commences on the first day of the month in which you reach the retirement age.

Active participant
The participant who accrues pension in the pension plan.

Actuarial assumptions
Information that is used to determine how much money is required to be able to pay the pension promises. This is for example the actuarial interest rate, mortality rates, disability rates and costs.

A specialist who does actuarial risk analyses and calculates the reservations required for the determination of the pension commitments.

The Authority for the Financial Markets (AFM) supervises the financial markets in the Netherlands. This concerns providers of financial products and services and companies issuing stocks and shares.

Annual report
Each year, PCN publishes the annual report over the previous year. This annual report is to inform you about the financial position of PCN and about important developments that occurred in the previous year. The annual report (also of previous years) can be found under downloads.

As of the AOV retirement age you receive an AOV benefit from the government. Please go to for more information.

AWW (Widows and Orphans (Benefits) Act)
In the event of your death, your partner and/or children may be entitled to a state benefit. Please go to for more information.
Please visit the website of the SVB.

A benchmark is a basic rate to compare the investment result. For investment in shares the benchmark is often a share index, e.g. the AEX.

The person who receives the (future) benefit. Either the participant or his/her surviving dependant(s).

Benefit claimant
Someone who can claim a benefit.

The board of a pension fund consists of representatives of all participants, deferred participants and retirees in the pension plan.

The money reserved to pay out the accrued pension entitlements in the future.

Cash value
The amount required to make one or more payments in the future, taking into account any future interest. In the pension plan this amount is often used when referring to the future pension.

A child of the participant is understood to mean the own children or step or foster children who are provided for and raised as one’s own, and who are not married or have not been married. A child can be eligible for orphan’s pension until the age of 21 (or under conditions age 25). Payment starts after the participant passes away.

Citizen service number
Your registration number at the municipality where you are registered (previously social security number). Everybody has a unique number.

Commutation value (or commutation amount)
The commutation value is the value that is paid in one go. With this, PCN buys off the pension. It means that in the future you will not receive pensioen from PCN. There are rules for the commutation of pension.

Conversion of pension entitlements into other pension entitlements. Conversion can take place e.g. after deciding between partner pension and a higher or earlier retirement pension.

Corporate governance
Corporate governance refers to a structure of relationships between the various company organs such as the Board of Management, Supervisory Board, shareholders and other interested parties, in which accountability, transparency and supervision play an important part. Pension funds invest in companies listed on the stock exchange and are therefore also shareholders.

Deferred participant
No pension premium is paid for this person. Also referred to as early leaver.

Defined Benefit agreement
An agreement in which the pension benefit has been determined.

Dependant’s pension
Pension specifically aimed at the benefit to the partner and children in the event of death.

The dissolution of the marriage as a result of a divorce decree.

DNB (Dutch Central Bank)
DNB is responsible for the supervision of financial institutions. DNB supervises among others pension funds, insurers and pension plans that are directly placed with an insurer.

Equalization (equalize)
Distribution of the entitlements to retirement pension accrued during the marriage in accordance with the system of the Pension Benefits Equalization Act in the vent of divorce.

Equalized retirement pension
The part of the retirement pension (RP) that is allocated to the ex partner after dissolution of a marriage, registered partnership or cohabitation agreement. The equalized RP reaches payout when the participant retires. If the participant dies prior to the retirement date, the equalized RP will be lost and the Special partner pension (SNP) is paid out. If the ex partner dies, the equalized RP is paid to the participant.

Exchange of pension types, e.g. the possibility to use a part of the retirement pension for a partner pension, or the other way around, use the partner pension for a higher or earlier retirement pension.

Fixed-income securities
Collective name for bonds and private loans.

Flexible elements
The options offered by a pension plan with which participants can organize their pension package in accordance with their individual circumstances and insights.

Former participant
A person for whom no longer pension contribution is paid, but who is entitled to a pension upon reaching the retirement age. Also referred to as sleeper. You become a former participant when you start working for another employer and no longer accrue pension with PCN.

Legal entity with a certain private capital and a certain objective.

Funding ratio
The funding ratio is the most important indicator for the financial position of a pension fund. The funding ratio is expressed in a percentage and reflects the relation between the assets and the liabilities of a fund. If the funding ratio of a pension fund is 100%, it has exactly enough capital to pay the pensions of the participants now and in the future.

Incoming value transfer
Amount of money paid by a previous pension administrator/fund to purchase pension entitlements in the new pension plan.

Indexation (see also supplement)
Increase of a pension or pension entitlements, which is granted annually by virtue of a stipulation described in the pension plan regulations.

The conversion of capital or resources into securities or objects in order to maintain or increase the value.

Life certificate (Attestatie de Vita)
This life certificate is a statement that must be provided each year by the PCN retirees who are living outside the BES islands. With this statement, that has to be signed by a competent authority, PCN can determine whether the pensioner is still alive.

Loss of pension rights
A loss of pension rights occurs if someone has to move to another pension plan or temporarily leave the plan due to a change of employers or as a result of a changed situation with the current employer.

Maximum salary limit
A salary ceiling. No pension is accrued over the salary exceeding the limit.
Offset This is the part of the maximum pensionable salary over which you do not accrue pension. You do not accrue pension over this part because you already receive a state old age benefit (AOV).

Old age benefit shortfall
As of 1 January 2015 the AOW supplement will cease to exist for the partner younger than 65 years. For people who turn 65 years o nor after 1 January, 2015 the mutual income may temporarily become less. This is called the Old age benefit shortfall (AOW-gat).

Orphan’s pension
Dependant’s pension that is paid to the children of a participant of a pension plan – until a certain age – after his or her death.

Outgoing value transfer
An amount of money that is transferred to another pension administrator o purchase pension entitlements for a participant.

The difference between the performed return and the benchmark return (positive or negative).

Part-time pension
An employee is working part-time and partially retired. He continues accruing pension over the salary earned with employment (usually until 65 years).

Part-time percentage
The part-time percentage is the relation between the actual agreed working hours and the full-time working hours.

Person to whom pension entitlements have been allocated on the basis of participation in a pension plan.

Participant rights
Rights of participants by virtue of a pension plan or Legal stipulations, both in terms of capital as well as legal rights.

A married or unmarried relationship of a participant, officially laid down by a marriage, a registered partnership or (notarised) cohabitation contract.

Partner pension
Dependant’s pension for the partner. The benefit is paid out if the participant dies.

Collective term for periodical benefits (usually per month), which replace the former salary in the event of retirement, death or disability. Mutual characteristic is that payment of the pension is terminated when the beneficiary has died and that the accrual of it is connected to employment.

Pension accrual
The amount of the annual pension accrual, called the A factor, determines to what extent you can utilise the tax allowance for supplementing your pension with annuities. If you want to calculate your possibilities, please use the Tax Return Program of the Tax Authorities on the website. Your financial consultant can help you with this. The pension accrual is indicated on the annual Uniform Pension Statement. Please visit the website of the Tax Authorities.

Pension base                                                                                                                                                                    This is the part of your income that counts for your pension accrual. The pension regulations decide which parts of the income count for the pension accrual and are therefore pensionable.

Note: the pensionable salary is subject to a maximum. If you earn more than $ 47,500 (2022), you do not accrue pension over this extra part. This amount is established each year.

 Pensionable salary of earnings                                                                                                                          Pensionable earnings = (maximum) pensionable salary -/- offset

 The pensionable salary is your gross salary + allowances (for example holiday allowance, Christmas bonus or year-end bonus). If you earn more than the maximum pensionable salary,   -$ 47,500 (2022) , you do not accrue pension over that extra part of your income.

The offset is that part of your income over which you do not accrue pension, because you are also entitled to an AOV benefit from the government. The offset is redetermined each year when the AOV amounts of that year are disclosed.

Pension beneficiary
A person who can claim a benefit on account of a pension plan.

Pension benefit
Benefit on basis of pension entitlements.

Pension entitlement
Entitlement to future pension benefits, arising from participation in a pension plan.

Pension fund
Foundation that looks after a safe and sound arrangement of the pension entitlements arising from a pension plan and collects, administers and manages capital. A pension fund can outsource this and come to an administration agreement with a pension administrator.

Pension Fund Governance (PFG)
Principles for good pension fund management. ‘Good pension fund management’ is a translation of the term Pension Fund Governance. It refers mainly to the way in which the board has been organized, the way the board renders account to the parties involved and the way in which the internal supervision has been organized.

Pension gap
A pension gap, also referred to as pension deficit, is the result of a pension that is not fully accrued. For example due to insufficient years of service, changing employer (without pension plan) or a divorce. Those can be reasons why later on you may not be able to live as you are used to.

Pension plan
A plan for which a participant pays premiums and which guarantee the participant with an income after retirement. Also referred to as pension agreement.

Pension plan regulations
General description of the pension plan applicable in the company, professional group or industry involved. In the plan it has been laid down who participate in the plan, how the level of the pensions is determined, which entitlements there are, what are the consequences in the event of dismissal, marriage, divorce, occupational disability, retirement and death. The pension plan regulations are the legal basis from which the people involved claim their entitlements and benefits.

Pension rights
Rights of participants on account of a pension plan.

Pensionable salary
This is the part of your income to be pensioned. In the pension plan regulations it has been determined which elements of pay are pensioned or pensionable.

The total return on investments.

This is the amount that you pay for the pension accrual including any voluntary additional premium.

Projected pension
This is the amount of annual pension that you receive as of the retirement age on the pension statement. You receive this amount if you continue your employment until that date and if you continue accruing pension in a pension plan. Your pension starts on the First day of the month in which you reach the retirement age.

A person whose retirement benefit has commenced.

Retirement date
The age at which the retirement pension commences by virtue of the pension plan.

Retirement pension
Pension reserved for the participant. It is paid out when the participant reaches the retirement date and payment is continued until he or she dies.

Salary data
Specification of the employment relationship between employee and employer, especially data about remuneration.

Salary increase
Development of the salaries over a certain period.
Social Affairs department of the Dutch Caribbean government department
Government body responsible for the administration of, among others, the AOV and the AWW.

Special partner pension
A dependant’s pension or partner pension that is allocated to the ex partner in the event of a divorce. The benefit is paid out if the participant dies.

Statement of contingency
It is mandatory for pension funds to inform you about the supplements (indexation) granted by them, including expected supplements for the next few years. This is done with the statement of contingency.

Independent and impartial organization appointed by the government that supervises the compliance of laws and regulations by pension funds. See De Nederlandsche Bank (DNB).

Supplement (see also indexation)
Increase of a pension or pension entitlement, which is granted on an ad hoc basis or is annually granted by virtue of a regulation laid down in the pension plan regulations.

Surviving dependant(s)
The partner of the participant who was married to the participant on the day of death. A registered partnership which was entered in the Netherlands holds the same status as a marriage.

Survivor tables
Survivor tables are based on mortality tables that indicate the number of people who are still alive after x years from a standard number of 0 years old. The name of the table indicates over which time observation period the data have been retrieved (e.g.: Entire Population 2000-2010).

SVB (Social Insurance Bank)
Official body that is in charge of the administration of among others the Old Age Pensions Act and the Surviving Dependants (Benefits) Act.

UPO (Uniform Pension Statement)
Standardised statement used by pension funds and insurance companies to provide employees with individual information about the benefit upon retirement, death and occupational disability.

UWV (Employee Insurance Administration Agency)
UWV is the administrator of the social insurances for employees and employers, such as the Unemployment (benefits) Act, Work and Income (Fitness for Work) Act and the Incapacity for Work Insurance Act.

Value transfer
The transfer of the cash value of pension entitlements to prevent pension loss if an employee becomes a participant in another pension plan.

Bonaire office

Kaya General Carlos Manuel Piar #5, Bonaire
T +599 717 09 84

8.30 AM until 12.00 AM
13.00 PM until 16.00 PM


Sint Eustatius

Mazinga Square, Oranjestad, Sint Eustatius
T +599 318 32 18
M +599 416 68 60

8.30 AM until 12.00 AM



Kaya General Carlos Manuel Piar #5, Bonaire
T +599 416 68 60



Fequently asked questions

Do I have to register myself with the pension fund?

How do I get information about my pension?

Am I automatically insured for partner pension for my partner?