You accrue pension in an average salary scheme
You accrue a piece of your pension each year. The pension you accrue is the sum of all these pieces. You receive this pension from your retirement date for as long as you live. This is known as an average salary scheme.
You do not accrue pension on your whole salary. Your pension fund takes account of the AOW you will receive from the government when you reach your AOW age. The part of your salary on which you do not accrue pension is known as the state pension offset. In 2024, the deductible is €22,917.
You accrue retirement pension at the annual rate of 1.875% of your salary less the state pension offset. The total pension you accrue is the sum of all years plus indexation if applicable.
