What will stay the same and what will change?

What will stay the same  

• You will continue to receive AOW benefits from the government when you reach your statutory retirement age.
• You will continue to accrue pension from the age of 18.
• Your employer, Avery Dennison, will continue to contribute money (contribution) to your pension with you. This contribution will continue to be invested for you by the Avery Dennison Pension Fund.
• The partner’s pension and orphan’s pension you have previously accrued will be retained.
• If you pass away while accruing a pension, your partner and children will retain their right to benefits.
• If you become disabled, you will continue to accrue a pension. In the case of full incapacity for work, you will not pay a contribution yourself. In the case of partial incapacity for work, you will only pay for the part you are still working.
• You will still have choices when you retire. For example, you will still be able to choose early retirement, defer your pension or exchange your partner’s pension for a retirement pension or vice versa.

What will change

• From pension entitlement to personal capital
  Under the new pension scheme, each participant will receive personal capital for their pension. This will replace the collective pension assets that currently exist. You will accrue personal capital for your pension with the contributions you and your employer make. The Avery Dennison Pension Fund will then invest this capital and your pension will be paid out from it in the future.

• The pension you have accrued will be converted into personal capital (expected to take place on 1 July 2027)
  Until the transition date, you will continue to accrue pension as you do now. The value of this accrued pension will be converted into personal capital for your pension. After all pensions have been converted to the new pension scheme, any remaining collective fund assets will be distributed by the Avery Dennison Pension Fund.

• Pension scheme to become a defined contribution scheme
  Under the new scheme, the contribution amount will be fixed rather than the pension amount. The contribution will be used as the basis for accrual.

• Your pension capital can grow if the investment results are positive and decrease if the results are disappointing. 
  o You choose your own investment profile. The Avery Dennison Pension Fund will then align its investments accordingly.
  o You can choose from three investment profiles with varying degrees of risk. The Avery Dennison Pension Fund automatically reduces the level of risk as you approach retirement.

• When you retire, you can choose between a variable pension or a fixed pension
  When you retire, you can choose between a variable pension from the Avery Dennison Pension Fund or a fixed pension from another pension provider. A variable pension can change annually. The risk-sharing reserve helps to limit any significant decreases.

• Different accrual method in the event of incapacity for work
  In the case of incapacity for work, it is no longer the pension entitlement that is exempt, but the contribution. The Avery Dennison Pension Fund pays the exempt contribution into the personal capital for your pension.

• The survivor’s pension is insured on a risk basis as long as you are employed
  In the event of your death, your partner will receive a partner’s pension and your children will receive an orphan’s pension until the age of 25. They will also receive the pension that you have already accrued in the current pension scheme. If you die after your retirement date, your partner will receive a partner’s pension if you so choose.
  
  Are you no longer going to be accruing pension at Avery Dennison because you have a new job, for example? In that case, the pension for your partner and children will continue for three months as standard. This three-month period may be shorter if you find a new job before that time.

• No more indexation
  The new pension scheme will no longer include indexation. From that point on, the value of your personal capital will follow the return on investments.