Conversion of Pension Rights in Leiden
Conversion of pension rights offers a solution in the event of divorce in Leiden to convert your partner's pension into an independent benefit. This ensures financial independence and prevents risks arising from reliance on your ex-partner. It builds on pension division upon divorce and falls under the Act on Equalisation of Pension Rights upon Divorce (Wet VPS), which is relevant for Leiden residents.
What does conversion of pension rights mean for Leiden residents?
Conversion means 'conversion': your claim on your ex-partner's pension becomes a direct, personal pension benefit from the pension fund administrator. Instead of payments via your ex (as in equalisation), you receive an independent accrual. This is ideal for Leiden residents who want to avoid risks, such as if your ex stops working early or enters a new partnership.
The option applies to accrued old-age pensions from the second pillar (occupational pensions) and sometimes partner's pensions. It is optional and requires a clear application. Without conversion, standard pension equalisation applies, with equal sharing until retirement.
Legal basis for conversion
The foundation lies in the Act on Equalisation of Pension Rights upon Divorce (Wet VPS). Key provisions:
- Article 1 Wet VPS: Pension equalisation as the default.
- Article 5 Wet VPS: Enables conversion; the participant (with pension) and co-participant (without) may convert (part of) the equalisation share.
- Article 5a Wet VPS: Conversion at least 50% of the share, unless otherwise agreed.
Article 119 of Book 1 of the Dutch Civil Code governs the settlement of divorce. Pension funds such as ABP must execute conversion following a ruling from the District Court of Leiden or a notary.
Conversion in Leiden practice
The step-by-step process for Leiden:
- Reach agreement: Record conversion in the settlement agreement or via the family division of the District Court of Leiden, before the pension date.
- Submit application: Send notification and conversion request to the pension administrator, via notary or District Court of Leiden.
- Execute conversion: The administrator converts the share actuarially into your own policy.
- Start payments: You receive your own lifelong pension from the pension date, with indexation.
Leiden example: Leiden residents Pieter and Laura divorce after 20 years. Pieter accrued €50,000/year at ABP. Through equalisation, Laura gets €25,000. With 100% conversion, ABP creates a separate pension for Laura. Even if Pieter dies early, her entitlement remains intact.
Differences between conversion and equalisation
Conversion provides greater certainty. Comparison:
| Aspect | Equalisation | Conversion |
|---|---|---|
| Dependency | Via ex-partner | Own benefit |
| Indexation | Same as ex | Follows original |
| Ex's death | Often lapses | Remains in place |
| Minimum % | 50% standard | 50% min, up to 100% |
| Costs | Low | Higher due to conversion |
Rights and obligations in conversion in Leiden
Rights:
- Independent lifelong benefit.
- Indexation and value protection.
- Protection against ex-partner's choices (e.g., early retirement).
Obligations:
- Apply within 2 months after divorce.
- Share or bear costs.
- Provide data to the fund.
If the administrator refuses (amount too small), involve the District Court of Leiden.
Frequently asked questions about conversion
Can conversion be requested after retirement in Leiden?
No, apply before the pension date. After that, only periodic payments via ex.
Ex-partner refuses to cooperate?
The family division of the District Court of Leiden may decide unilaterally in cases of compelling interest (Article 5(3) Wet VPS).
Does it apply to partner's pension?
Yes, survivor's pension can be converted to own old-age pension; partner's pension is often split.
Notary required?
Yes, a notarial deed or court order from the District Court of Leiden is required.
Tips for Leiden residents
For successful conversion:
- Seek advice: Contact Het Juridisch Loket Leiden or a local family law attorney. Also see pension upon divorce.
- Document early: Start during divorce proceedings at the District Court of Leiden.
- Check funds: For Leiden Municipality employees, often ABP.