Your pension will become variable
We expect to move to the new pension plan on January 1, 2028. Under the new pension plan, your pension will move with developments in the financial markets. As a result, your pension benefit may increase or decrease in the future. This is called a variable pension. But what exactly does this mean, and what will you notice?
Why will your pension become variable?
The new pension plan is a solidarity defined contribution plan (solidaire premieregeling, or SPR). The basic principle of this type of plan is that we invest together and share risks. This means we can benefit from good investment results and absorb setbacks together as much as possible. As part of this, your pension is no longer fixed in advance. If investments perform well, your pension will increase. If investment results are disappointing, your pension will decrease. Changes in interest rates and life expectancy also affect the amount of your pension. That is why it is called a variable pension.
One shared buffer: the solidarity reserve
When we move to the new pension plan, a shared buffer will be created from the pension assets: the solidarity reserve. This reserve is intended to protect pension benefits against financial setbacks. If there is an insufficient or negative result and pension benefits need to decrease, the solidarity reserve can be used to limit the impact on pension benefits. In years with good investment results, the solidarity reserve will be replenished. This means there will also be a buffer in less favorable years to absorb setbacks and keep variable pension benefits as stable as possible.
What does this mean to you?
- Are you retired? Your investment results and the interest rate will be reflected in your pension benefit. As a result, your pension may increase or decrease each year.
- Are you still building up your pension? Your contributions, Mars contributions, and investment results will be reflected in your personal pension assets.
- Have you left Mars but are not yet receiving a pension? Your accrued Mars pension will be converted into personal pension assets. Investment results will also affect your pension assets.
If you are an active member
If you are still building up your pension with Mars Pension Fund, you will have personal pension assets under the new pension plan. These assets will include your contributions, your employer contributions, and investment results. Your pension assets may therefore increase, but they may also decrease.
Investment risk based on age
Under the new pension plan, we will not invest in the same way for all participants.
Investment risk will be adjusted to your age and reduced as you get older. When you are younger, we can take more risk with your pension assets because you have more time to absorb potential setbacks. As you get older, we take less risks. This means the chance of achieving a higher return is smaller, but the chance of major setbacks is also smaller.
The pension fund distributes investment results each month among the personal pension assets of each age group. When you retire, your personal pension assets will be used to purchase a lifelong variable pension from Mars Pension Fund. The amount of pension you receive from that point onward will depend, among other things, on the amount of your pension assets, the interest rate, and changes in life expectancy.
If you are already retired
Much will remain the same. You will continue to receive a pension every month for as long as you live. What will change is that your pension will become a variable pension under the new pension plan. This means your pension may increase or decrease somewhat each year.
The amount of your pension will depend, among other things, on investment results, the interest rate, and changes in life expectancy. These will be reflected in your pension benefit once a year. If investment results are good, your pension may increase. If results are disappointing, your pension may decrease.
Under the current pension plan, the Board decides each year whether and by how much your pension can be increased. The Board looks at the financial position of the pension fund, inflation, and the funding ratio as of the end of September. Under the new pension plan, there will no longer be a separate decision to increase your pension. Your pension may change each year based on investment results, the interest rate, and changes in life expectancy.
The solidarity reserve may be used in certain situations to limit the impact of financial setbacks on your pension benefit.
If you have left Mars and are not yet receiving a pension
Have you left Mars but are not yet receiving a pension? Under the new pension plan, your accrued Mars pension will be converted into personal pension assets. You will no longer make pension contributions from that point onward. Your pension assets will change based on investment results and may therefore increase or decrease. We will continue to invest your pension assets. Investment risk will be adjusted to your age and reduced as you get older. When you retire, your personal pension assets will be used to purchase a lifelong variable pension from Mars Pension Fund.
Frequently asked questions
No. Your pension will be adjusted once a year. Within a given year, you will therefore receive the same gross monthly amount.
Yes. Under the new pension plan, your pension may increase, but it may also decrease. Your pension will be more closely linked to the financial results of the pension fund. The solidarity reserve may help limit the impact of financial setbacks.
The solidarity reserve is a shared buffer. It can help absorb financial setbacks and make pension benefits more stable.
When we move to the new pension plan, the solidarity reserve will be created from the total pension assets of Mars Pension Fund. At the start, 1% of the total assets will be used as initial capital. If sufficient assets are available, the reserve can be increased to a maximum of 5%.
No. The solidarity reserve is a shared reserve and is not part of your personal pension assets.
When we move to the new pension plan, the solidarity reserve will be created from the total pension assets of Mars Pension Fund. The amount that can actually be allocated to the reserve will depend on the funding ratio at the time of the transition. To give you an idea:
When we move to the new pension plan on January 1, 2028, 1% of the total pension assets will be used as initial capital for the solidarity reserve. If sufficient assets are available after that, the reserve will be increased to a maximum of 5% of the total pension assets according to the agreed allocation order. If the solidarity reserve is used, it can be replenished with assets that are available for this purpose under the agreed rules. This ensures that there remains a buffer to absorb setbacks.
When we move to the new pension plan, the solidarity reserve will be created from the total pension assets of Mars Pension Fund. The amount that can actually be allocated to the reserve will depend on the funding ratio at the time of the transition. To give you an idea:
When we move to the new pension plan on January 1, 2028, 1% of the total pension assets will be used as initial capital for the solidarity reserve. If sufficient assets are available after that, the reserve will be increased to a maximum of 5% of the total pension assets according to the agreed allocation order. If the solidarity reserve is used, it can be replenished with assets that are available for this purpose under the agreed rules. This ensures that there remains a buffer to absorb setbacks.
No. You will continue to receive a pension for as long as you live.
The new pension plan of Mars Pension Fund is expected to take effect on January 1, 2028. Until then, your current pension plan will remain in effect.
Mars Pension Fund expects to be able to provide preliminary personal amounts by the end of 2027. Once the financial position of the pension fund as of January 1, 2028, has been established, the final amounts can be calculated. These are expected to be available around the middle of 2028.