At maturity on 1 Feb 2025
Vested benefits: this is the gross amount that you will be entitled to collect on your expected retirement date if you are no longer working as of the status date (see date on benefits statement). This also assumes that you have kept your reserves invested in your AG Employee Benefits.
Simulated lump sum: this is the amount – less taxes and social security deductions – that you will be entitled to collect if you are still alive on the expected retirement date stipulated in the regulations. It may be taken as a single lump sum payment on the retirement date.
This is the projected value of your benefits. Your simulated lump sum are calculated based on a set of assumptions. In other words, the value may vary if there has been an amendment to the pension plan or a change in the variables used to make the calculations (e.g. your salary or working time percentage). As a general rule, your benefits should increase every year to keep up with salary increases (due to indexation, pay raises, etc.). However, your benefits could also decrease, for example if you reduce your working time percentage or leave the company.
Moreover, any revision in the interest rate formally guaranteed by the insurer may also impact the value of your benefits. In any event, reserves that have vested through previous premium payments will continue to be invested at the current interest rate until you reach the retirement date stipulated in pension plan regulations. Reserves that accrue with new (higher) premiums as of the rate adjustment will be invested at the new interest rate. The impact of this measure will be reflected in your benefits statement.
This is your gross benefit amount. It does not include any withholding tax, Illness-Disability (INAMI/RIZIV) contribution or solidarity contribution that will be deducted when you retire and cash out of the plan. Under the current legislation, these deductions represent roughly 20% of the gross amount.
Your final payout will be determined according to the applicable tax legislation at the time you claim your benefits. Sample case with figures and more information about filing your tax return.