You may have a preference for commencing part of your deferred pension instead of retiring from one day to the next. In the pension arrangement, which is laid down in Regulations VI, it is possible to have part of a deferred pension commence payment from the age of 55.
How does this work?
If you have a deferred pension, there are two options:
- If you did not transfer: you are still in Company service and have a deferred pension under Regulations V.
- You have left Company service and have a deferred pension.
You want to have part of this deferred pension commence payment; in that case you take part-time retirement. This is possible from your 55th birthday at the earliest. The condition is, however, that payment of 20% or 40% or 50% of the deferred pension is commenced.
If you have taken part-time retirement you can no longer work for Shell. You can, however, increase your part-time percentage to a maximum of 50%. You then take full retirement on your official Retirement Date.
Impact on your pension
If you retire before the age of 67, your annual pension income will be lower. This also applies in the case of part-time pension. So if you opt for part-time retirement, your retirement pension from the age of 67 will be lower. Part-time retirement also has consequences for the level of any partner's pension.
Fiscal consequences of part-time pensions and working
If you take part-time retirement five years before your AOW-age and you plan to start working again, the combination of pension benefit payments and income from employment or other sources may have consequences for your fiscal situation. In cases like the Belastingdienst (Dutch Tax Authority) can declare the pension arrangement "non-compliant" and levy tax on the "economic value" of your total pension entitlement, plus potential interest of 20%. The Pension Fund recommends that you seek advice about this from the Dutch Tax Authority or a tax advisor.
Please read the Dutch Tax Authority point of view here (available in Dutch only).
Requesting early commencement of part of a deferred pension
You are required to notify the Pension Fund of this no later than two months before the date on which you wish to have the pension commence (at an earlier date). For this you use the form "Early payment of part of a deferred pension". Here you indicate when you would like part of your deferred pension to commence.