Available Premium Scheme in Den Haag
The available premium scheme (BPR) is a popular pension option where employers in Den Haag contribute a fixed premium to employees' personal pension accounts. The final pension amount depends on the premiums paid and investment returns. Unlike older systems, the employee in the Den Haag area bears the investment risk, which aligns with the dynamic job market here, featuring many SMEs and government positions.
What does an available premium scheme mean for residents of Den Haag?
Under a BPR in Den Haag, the employer deposits a fixed percentage of salary each year into an individual account managed and invested by a pension insurer or fund. The pension is not guaranteed but tracks market performance, making it ideal under the Future of Pensions Act rolling out from 2023. In Den Haag, with its thriving tech and services sector, many smaller businesses opt for this due to its predictability.
Employees may benefit from higher returns but face risks during market downturns – relevant for commuters and locals in a city like Den Haag.
Legal Framework for the BPR
The scheme falls under the Pensions Act (Pw), Articles 1 et seq., with specific rules such as:
- Article 70 Pw: Employer must contribute the premium.
- Article 119 Pw: Transparency on risks is mandatory.
- Future of Pensions Act (2023): Transition to premium-based schemes with lifecycle investments from 2026/2028, with risk decreasing by age.
For collective bargaining obligations, the Mandatory Participation in a Pension Scheme Act (Wvp) applies. Self-employed individuals in Den Haag can set up a BPR via annuity under the Income Tax Act 2001. For questions: contact the Legal Aid Office Den Haag for free advice.
Comparison with Other Schemes
The BPR differs from average salary or final salary variants. Overview:
| Scheme | Build-up | Risk | Example in Den Haag |
|---|---|---|---|
| Available premium scheme (BPR) | Fixed premium, flexible pension | Employee (market fluctuations) | 5% of €55,000 salary (Den Haag IT job) = €2,750/year, grows to €320,000 |
| Average salary scheme | Based on average salary | Employer/fund (protected) | 1.875% per year, fixed pension |
| Final salary scheme (legacy) | Based on final salary | Employer (intensive) | 2% of final salary |
More info: our article on pension build-up for Den Haag employees.
Pros and Cons for Den Haag
Advantages:
- Transparency: Track your pot via annual reports, handy for mobile careers in Den Haag.
- Customizable: Choose investment style (aggressive or conservative).
- Growth potential: Strong returns in favorable periods.
Disadvantages:
- Market risk: Drops during crashes, like in 2022.
- Uncertainty: No fixed amount.
- Administration: More paperwork per account.
Example 1: Young Professional in Den Haag
Mark (35, IT specialist at a Den Haag startup) builds via BPR with 6% premium on €60,000 (€3,600/year). Aggressive profile yields €52,000 after 10 years at 7% return. At 65, he expects €420,000.
Example 2: Den Haag Entrepreneur
Sara runs an SME in the Binckhorst and offers BPR. During a dip, the pot shrinks 10% but recovers. This builds awareness while keeping costs manageable.
Rights and Obligations under BPR
Employee rights:
- Annual pension overview (Pw art. 114).
- Investment choice, e.g., lifecycle.
- Value transfer on job change (art. 67 Pw).
Employer obligations:
- Actuarial premium (often 70/30 split).
- Risk information via documents.
- Final contribution upon termination.
For disputes: District Court of Den Haag or Legal Aid Office Den Haag. Employers may adjust premiums via collective agreements.
FAQs for Den Haag
Difference between BPR and average salary scheme?
BPR: fixed premium, variable pension (employee risk). Average salary: guaranteed based on salary (fund risk). BPR aligns with the new Act.
How do I check my BPR?
Check payslip (% premium) or mijnpensioenoverzicht.nl. Regulations refer to 'available premium'. Get help from Legal Aid Office Den Haag.
Can I invest myself in BPR?
Yes, via profiles (risky when young, safe when older). Review policy; customization possible.
Pension pot too low?
Falls back on state pension. Top up with annual allowance (tax-deductible). Check Municipality of Den Haag for local initiatives.