What's new for employees retiring in 2025 ?
As previously announced, the Transparency Act will come into effect in stages. As of 1 January 2025, the new provisions for the payout process will apply. For your convenience, we've provided a summary below.
To improve the transparency of supplementary pensions, identical rules have been set for all pension institutions. The objective is to provide plan participants with clear, easily digestible and relevant information so that they have a better understanding of their future supplementary pension proceeds and the payout process. Read on and we'll walk you through the highlights.
One of your staff members will be retiring
Your staff member can claim their state pension online via MyPension between 12 months prior to the expected retirement date (earliest possibility) and up to 1 month after this date at the latest. The government agency Sigedis, responsible for managing the Federal Pension Service's Supplementary Pensions Database, will notify us of the statutory retirement.
- New: Sigedis will provide us with the bank account number
Sigedis will notify us of the statutory retirement start date and will also provide us with the bank account number we can use to pay out the supplementary pension proceeds (if your staff member has pre-authorised the use of this account number for this purpose in MyPension). This is the account number that will be used to pay out the state pension benefits.
Once we receive this information, we'll start the process of paying out the supplementary pension.
We'll keep your staff member informed
At the latest 60 days before retirement, we'll inform your staff member about their supplementary pension (provided that we have received the statutory retirement date at least 90 days in advance).
We'll send out a letter containing all the practical details: an overview of the pension plan(s), the gross and net amounts, the likely payout period(s), tax information, the payment options and all the necessary steps to collect the proceeds.
- What's new in the letter?
As of 1 January, the letter will also include the following information:
- the account number we'll use to pay out the supplementary pension (unless we have received instructions to the contrary)
- the amount of the statutory minimum annuity (if the staff member has opted to convert the lump-sum benefits into an annuity)
MyAG Employee Benefits: a hassle-free payout process
Via the MyAG Employee Benefits platform, your staff members can quickly and easily send in and/or confirm all necessary information.
This is where they'll find a clear online overview of all of the supplementary pension plans you have taken out for them and the amount they will collect after retirement, both for dormant and active contracts.
You also have the option to provide us with all the information via e-mail or ordinary mail. The safest, quickest and easiest way, however, is via MyAG Employee Benefits.
With this highly efficient payout process, AG Employee Benefits complies with all of the relevant provisions of the Transparency Act.
Collecting the proceeds, a happy occasion for your staff member
We do our utmost to have all of the required information and attestations in our possession three weeks before the retirement date. This way, we have ample time to check everything and, if necessary, request additional information to complete the application on time. We'll release the payment to your staff member within 30 days of retirement (or within 30 days of receiving all of the required information). Interested in a behind-the-scenes look at the payout process? We covered all the details in a previous article.
- New: statutory late payment interest for non-compliance with certain deadlines
Exceptionally, your staff member may get their letter from us past the normal deadline or have to wait longer than 30 days for payment. In this case, we'll compensate your staff member by paying out additional interest at the statutory late payment interest rate.
Small amounts, simplified procedure
Sigedis will determine whether to apply the "small amount" (under €150 indexed) procedure to the payment of the supplementary pension proceeds.
- New: automatic payout for small amounts
For amounts below EUR 150 euro (indexed), payment will automatically be made to the account number we have on file for this purpose (provided that your staff member has given their consent to use this account number).
There will be no need for your staff member to provide any information. They will be notified by Sigedis via e-mail and will also get a message to this effect from AG.
What next?
As you can see, AG remains committed to providing you and your staff members with clear, transparent information. With MyAG Employee Benefits, your staff members will always have an easily digestible, up-to-date overview of their corporate-sponsored benefits, via their computer as well as via the app - an effective way to shine the spotlight on all the fringe benefits you so generously provide!
We'll keep you informed of all the adjustments we make in connection with the Transparency Act and will advise you if there are any changes for you and/or your plan participants.
Have questions about these changes or the payment of the supplementary pension benefits? Simply make an appointment with your regular contact person.