Separating from your partner brings about lots of issues. One of them is splitting your pension with your ex-partner. Dutch law currently provides rules for splitting pensions if ex-partners don't make their own agreement. The Dutch legislator is planning to enforce new rules to simplify pension splitting. This article sets out the latest developments and what you can do.

If you and your partner separate or get a divorce, your ex-partner will be entitled to half of the old-age pension you accrued while you were married or registered as partners. This is referred to as ‘pension equalisation’ and must be reported to ING CDC Pensioenfonds within two years after the divorce takes effect. If you miss that deadline, you and your partner will have to make your own agreement regarding your pension. This is why the Dutch legislator wants to simplify pension splitting by providing default rules, which should take effect in 2020.

Conversion by default
Aside from creating default rules for splitting pensions, the Dutch government also wants to change another issue regarding pension and divorce. Equalisation of pension is currently the default option. Under this rule, your pension accrual is not actually split with your ex-partner until the day you retire. This means that if you decide to retire early or you pass away before you retire, your ex-partner's pension benefits will be affected. 

The Dutch government wants to avoid this situation by making conversion the default option. Conversion means the pension accrual is split as at the day of the divorce, giving both ex-partners their own pension rights and the discretion to decide when and how to use those rights. After the divorce, both partners will receive pension overviews showing how much pension they can expect to receive in the future. 

Below is a summary of the differences between equalisation and conversion:

Pension split in five steps
Until the new rules take effect, we advise you to follow these steps if you get a divorce.

1. Check Dutch pension law
Make sure you delve into the Dutch rules for pension splitting. The government publishes FAQ here. 

2. Default option or your own agreement?
If you and your ex-partner don’t specifically agree otherwise, your old-age pension will be equalised by law. This means both of you will get half of the old-age pension. Check your prenuptial or partnership agreement to find out whether you and your partner made any provisions for splitting your pension. Or provide for this in your divorce settlement agreement.

3. Consult an advisor?
Dutch law provides default options in case you don’t make your own agreement. Nevertheless, you might want to consult a financial advisor to avoid legal complications. 

4. Your municipality
If you live in the Netherlands, you won’t need to report your divorce to ING CDC Pensioenfonds. Your municipality will do that on your behalf. However, if you live abroad, you will need to inform us. As soon as you have reported your divorce to us, we will send you a letter including a form to report how you and your ex-partner wish to split your pension. You must do this within two years after your divorce.

5. What if you don’t take any action?
If you don't report your divorce to us within two years, the provisions of the Dutch Pension Benefits Equalisation Act will apply to your pension. This means you will receive your old-age pension in full, and you and your ex-partner will have to make your own agreement with regard to pension.

More information
Our newsletters and website will keep you informed of the latest developments in terms of life events that have an impact on your pension, such as a divorce. If you have any other questions about this topic, please contact the Pension Desk.