Asettlement agreement (VSO)not only concerns the end of your employment, but can also have consequences for yourpension accrual. Many employees do not think about this, but this topic can have a major financial impact in the long term.
In this article we explain what happens to your pension with a VSO, what agreements you can make and what you should pay attention to before you sign.
What happens to your pension with a VSO?
When your employment ends through a VSO, in principle your pension accrual with the employer also stops. This means:
No further premium payment by employer and employee.
Your accrued pension continues to exist, but does not grow further.
Any additional pension provisions may end.
Important points of interest
1. Stopping pension accrual
After dismissal, you no longer pay contributions yourself, unless you start working elsewhere with a pension scheme.
2. Partner and survivor's pension
Some schemes have a survivor's pension that expires as soon as you leave employment. This can be a big risk.
3. Voluntary continuation
Many pension funds offer the option to voluntarily continue your pension accrualat your own expense. This can be useful, but is often expensive.4. Preventing a pension gap
If you are fired just before your retirement age, this can result in a significant pension gap. Negotiating compensation is then extra important.
Practical examples
Example 1:
A 61-year-old employee received a VSO without agreements about pension. Due to the loss of 4 years of pension accrual, he missed out on thousands of euros.Example 2:
Through negotiations, an employee received an additional contribution from the employer for his pension accrual in addition to the transition payment.Example 3:
An employee with a survivor's pension voluntarily continued this after termination to protect his family.Negotiation options
Additional severance payment
as compensation for missed pension.Contribution to pension premium
for voluntary continuation.Continuation of insurance
for survivor's pension.Checklist: pension at VSO
📄 Check what is in your pension scheme at the end of employment.
💶 Calculate the pension gap caused by earlier dismissal.
📝 Negotiate compensation in the VSO.
🔒 Pay attention to partner and survivor's pension.
⚖️ Have your VSO checked by an employment lawyer.
Common mistakes
Not thinking at all about pension upon dismissal.
Thinking that pension accrual continues automatically.
Do not ask for compensation for missed years.
Overlooking survivor's pension.
Frequently asked questions (FAQ)
1. Will my pension automatically stop if I am dismissed via VSO?
Yes, unless you continue it voluntarily or find a new job with a pension scheme.
2. Can I receive compensation for missed pension?
Yes, this is negotiable in the VSO.
3. What happens to my accrued pension?
That remains safe with your pension fund.
4. What about survivor's pension?
This may disappear unless you continue it voluntarily.
5. Does a lawyer help with this?
Yes, a lawyer can calculate what you are missing out on and negotiate compensation.
Why Arslan Advocaten?
Specialized in
employment law and dismissal arrangementsCarefully calculate the financial impact on your pension
Negotiate for
extra compensation or premium contributionProvide guidance in agreements about survivor's pension
Conclusion
Conclusie
A settlement agreement can have major consequences for your pension. Do not leave this topic undiscussed, especially if you are older or have additional pension benefits. With the right agreements you can prevent a large pension gap.