Industry-Wide Pension Fund
For workers in Leiden, an industry-wide pension fund (BPF) is essential. This collective fund manages pension accrual for all employees and employers in a sector, such as construction or education in the Leiden region. Often mandatory under a collective agreement, it offers a standard scheme. This article covers BPFs, relevant laws, and your rights as a participant in Leiden.
What does a BPF mean for Leiden residents?
A BPF is an independent foundation that arranges pensions for an entire sector, such as the construction industry around Leiden or the education sector at Leiden University. Unlike a private insurance policy, it builds up pensions collectively, with contributions paid by both employer and employee. The fund invests and pays out later.
Key features:
- Sector-wide: Uniform across the entire sector in Leiden and surrounding areas.
- Mandatory: Usually required via collective agreement for local businesses.
- Governed: By representatives of employers and employees.
Well-known examples: Bpf Bouw for construction companies in Leiden, bpfMT for metalworking, and ABP for staff at Leiden University and government employees.
Legal framework for BPFs
BPF rules are set out in the Pension Act 2007 (PA). Key provisions:
- Art. 1(1) PA: BPF for enterprises in one industry.
- Art. 17-24 PA: Establishment and fund rules.
- Art. 66 PA: Mandatory affiliation via general binding order of a collective agreement by the Minister of SZW.
Supervision: DNB on finances, AFM on information. Violations lead to fines or administration by DNB. In Leiden, disputes can be brought before the District Court of Leiden.
Differences with other funds
The Netherlands has three types of pension funds. Comparison:
| Type | Application | Participation | Management |
|---|---|---|---|
| BPF | Entire sector, incl. Leiden | Often mandatory (AVV) | Social partners |
| OPF | Single company | Voluntary/CAO | Company & staff |
| PPI | Individual/small | Voluntary | Insurer |
BPF spreads risks across the sector, providing stability for Leiden's economy.
Practical examples from Leiden
As a carpenter at a local construction firm in Leiden, your collective agreement falls under AVV Construction & Infrastructure. Your employer pays contributions to Bpf Bouw (approx. 25% of salary in 2023, employer 60%). More on employer contributions.
In metalworking or at Leiden University: via bpfMT or ABP. In case of bankruptcy, your pension remains secure due to the fund's independence.
Rights and obligations as a Leiden participant
Rights
- Information: Annual overview via mijnpensioenoverzicht.nl.
- Access to regulations: Request and object (Art. 62 PA).
- Survivors: Partner's pension.
- Portability: Continues if you switch sectors in Leiden.
Obligations
- Salary deduction for contributions.
- Update personal details.
- Provide accurate information for payouts.
Employers must pay on time (Art. 68 PA). In case of non-payment: wage claim or via District Court of Leiden.
Frequently asked questions
Mandatory for BPF in Leiden?
Yes, if under AVV collective agreement. Check on Rijksoverheid.nl or via Municipality of Leiden.
Employer not paying?
DNB fines; you can summon them to court. Funds often cover risks.
Check your pension?
Log in with DigiD on mijnpensioenoverzicht.nl; UPO annually.
Pension Agreement 2023?
BPFs adapt to the Future Pensions Act; rights protected.
Tips for Leiden residents
Maximize your BPF:
- Check UPO against payslip.
- Extra savings: Alongside state pension with annuity.
- Stay in sector for continuity.
- Need help?: Call Legal Aid Office Leiden for free advice.
More: Employer contributions, CAO rights, Pension Act.
BPF promotes solidarity in Leiden's sectors.