Common use of Pensionable Earnings Clause in Contracts

Pensionable Earnings. The pensionable earnings are an important starting point in determining the contributions. The pensionable earnings are the pensionable salary minus the pension offset. Let’s assume the participant has a full-time annual salary of € 180,000.00 gross (this is his/her pensionable salary plus 8% holiday allowance). And the pension offset is (for example) € 130,000.00. We determine the pensionable earnings on 1 January of each year. Example calculation 1 If the pensionable salary becomes less, we will determine the pensionable earnings again. We do this on the date when the pensionable salary becomes less. If the pensionable earnings become (temporarily) zero or lower during participation? Then your employee remains a participant. The participant will then (temporarily) no longer pay contributions for Net Pension. This also applies to the net partner’s and orphan’s pension. As long as the pensionable earnings remain zero or lower, we do not charge any administration costs. If the pensionable earnings are greater than zero again, we will resume the contributions for the Net Pension. This also applies to the net partner’s and orphan’s pension. We base the resume on the last choice of the participant known to us.

Pensionable Earnings. The pensionable earnings are an important starting point in determining the contributions. The pensionable earnings are the pensionable salary minus the pension offset. We determine the pensionable earnings on 1 January of each year. Example calculation 1 Let’s assume the participant has a full-time annual salary of € 180,000.00 gross (this is his/her pensionable salary plus 8% holiday allowance). And the pension offset is (for example) € 130,000.00. We determine the pensionable earnings on 1 January of each year. Example calculation 1 If the pensionable salary becomes less, we will determine the pensionable earnings again. We do this on the date when the pensionable salary becomes less. If the pensionable earnings become (temporarily) zero or lower during participation? Then your employee remains a participant. The participant will then (temporarily) no longer pay contributions for Net Pension. This also applies to the net partner’s and orphan’s pension. As long as the pensionable earnings remain zero or lower, we do not charge any administration costs. If the pensionable earnings are greater than zero again, we will resume the contributions for the Net Pension. This also applies to the net partner’s and orphan’s pension. We base the resume on the last choice of the participant known to us.