Find out how to keep as many benefits as possible if you change jobs or retire.
What happens with your group insurance?
75% of employers provide their staff members with group insurance. This allows them to build up a sizeable nest egg that they can use when they retire. You can read all about group insurance in the key moment "I want to save for a comfortable retirement".
Many employees wonder what will happen to the savings they've accrued via their group insurance plan when they take on a new job elsewhere. Like a lot of people, you may be operating under the false assumption that you automatically forfeit your entitlements. But there's no need to worry: you get to keep the savings you've set aside over the years (= accrued reserves). It's only in rare cases that a group insurance plan doesn't allow you to keep your reserves. To find out about any exceptions, it's a good idea to check your pension plan regulations or ask your employer.
MyAG Employee Benefits
What exactly does your corporate-sponsored healthcare insurance cover? What costs are covered?
Go to MyAG Employee Benefits to find out more.
How do you register and log in to the MyAG Employee Benefits app?
Exit letter
When you leave your company, you'll get a letter. This letter explains what you can do with your accrued supplementary pension reserves:
- Option 1: you leave your reserves invested in your former employer's group insurance plan with AG Employee Benefits & Health Care (= "dormant" participant)
This is the default option. If, upon leaving your employer, you don't take any action to transfer your accrued reserves elsewhere, your contract will simply remain intact. While no new premiums will be contributed, your previously accrued reserves will continue to earn interest at the same attractive rate.
When you reach retirement age, the accrued savings will be paid out to you.
Note: in some cases, leaving your employer can lead to termination of the death benefit coverage included in your group insurance plan. If you don't clearly indicate your selected option or leave your reserves invested in your former employer's plan (option 1), your beneficiaries might not be entitled to collect any reserves if you die before you reach retirement age. Your exit letter will mention whether or not your death benefit coverage remains intact. Again, make sure you get all the information you need from your HR department (and also consider option 2).
- Option 2: you leave your reserves invested in your former employer's group insurance plan with AG Employee Benefits and opt for death benefit coverage guaranteeing payment of the accrued reserves ("dormant" participant with death benefit coverage)
This option is based on the same principle as option 1 but includes death benefit coverage. If you die before you reach retirement age, your accrued reserves will be paid out to your beneficiary(ies). This also means that the cost of this coverage will reduce the amount paid out to you when you reach retirement age.
If you choose this option, you'll need to comply with certain deadlines:
1: Once you get your letter, you'll have 30 days to select this option. If you don't select an option, your accrued reserves will remain invested as per option 1.
2: Once this 30-day period has expired, you'll still have another 11 months to select this option.
At the end of these 11 months, you can no longer select option 2. You'll also be given the option - before you retire - to transfer your accrued reserves to a hosting structure with AG Employee Benefits (option 3), to your new employer's pension plan (option 4) or to a pension plan that limits the costs and shares the profits with all plan participants (see option 5).
- Option 3: you transfer your accrued reserves to a hosting structure with AG Employee Benefits
Your supplementary pension savings will be transferred to a special purpose vehicle known as a "hosting structure". As this will be a new contract, it will no longer be managed according to your previous employer's pension plan regulations. You will, however, get to keep the same guaranteed interest rate.
Important: with this option, your death benefit coverage will continue to apply. If you pass away before you reach retirement age, your accrued reserves will be paid out to your beneficiary(ies).
- Option 4: you transfer your accrued reserves to your new employer's pension plan (for example, AG Employee Benefits & Health Care)
If your new employer also provides you with group insurance, you can decide to transfer the reserves you've accrued via your previous plan to your new employer's pension plan. From that moment on, the new terms and conditions with the new pension institution will apply, and your original guaranteed interest rate may no longer be valid.
- Option 5: you transfer your accrued rerserves to a pension institution that shares the profits among plan participants and limits the costs, in accordance with the Royal Decree of 14/11/2003
Once the accrued reserves are transferred to this type of pension institution, your contract with AG Employee Benefits & Health Care will be terminated and the terms and conditions with the new pension institution will apply. You might also lose the guaranteed interest rate that you had.
AG Employee Benefits & Health Care can also serve as this type of pension institution.
Need a Certificate of Insurance? You can easily request it via the MyAG Employee Benefits platform or the app.
How long do you have to select an option?
If you fail to select an option within 30 days of receiving your exit letter, your accrued reserves will remain invested according to the original insurance combination (option 1). As explained, your accrued savings might not be paid out to your beneficiary(ies) if you die before you retire. If you fail to specify an option, AG Employee Benefits & Health Care will always provide death benefit coverage equivalent to the accrued reserves for the first three months.
Remember: if you want to keep your death benefit coverage, you can select option 2 (explicit choice within the year) or option 3 (option available until you reach retirement age). What's more, other than the hosting structure, you still have the option to transfer your reserves to your new employer's pension plan (option 4) or to a pension plan that limits the costs and shares the profits (option 5).
Benefits statement
When you leave your employer, you'll not only get an exit letter but also a benefits statement containing a summary of the key figures, including the amount you've set aside for your pension.
Income protection insurance
If you are unable to work for an extended period of time (such as after an accident or the birth of a child), your income protection insurance will provide you with a supplementary income to top up your state benefits. This insurance is one of the most common types of covers and will be terminated when you leave the company.
Sole exception: if you're already on incapacity leave and your employer decides to make you redundant, you'll still collect your benefits until end of the period specified in your pension plan (generally age 65).
However, you do have the option of extending this income protection coverage on an individual basis, just as you can for hospitalisation insurance. The following paragraph provides additional information on individual continuation coverage.
Is your hospitalisation insurance still valid? And what about your family members?
If you leave your company (such as when you retire or if you resign), you might also forfeit your right to your corporate-sponsored hospital plan. Don't worry: it's highly likely that you'll also get hospitalisation insurance with your new employer. In any event, even if you do lose your hospitalisation insurance, you always have the option to continue your corporate-sponsored coverage on an individual basis .
Your (previous) employer will inform you of the option to sign up for individual continuation coverage within 30 days of losing your corporate plan. From then on, you'll have 30 days to apply for continuation coverage with your insurer. It's important to respect these deadlines if you want to keep the same covers.
Note: don't forget that your family members may also have their coverage via your employer. If so, the information on taking out individual continuation coverage also applies to them.
The premium for individual continuation coverage can be quite high. To neutralise the sting of such a high premium, you can take out a waiting policy while you're still enrolled in your employer's plan. This way, you can avoid any unpleasant surprises and get the security of knowing what your future covers and premium will be.