In a divorce, assets are divided between the ex-partners. Separate from the assets, the pension entitlements are divided, applying the Divorce Pension Equalisation Act (Wvps). Intended effective date of the new law is 1 January 2021.
New law
The intention is to replace this law with the Pension Sharing in Divorce Act (Wps). For this law, the internet consultation started. In this way, the legislature is giving everyone an opportunity to make comments and observations before the bill is submitted to parliament.
Main rule becomes: conversion
Under the current Wvps, the ex-partner is entitled to payment of his or her share of the pension entitlements. This leaves the ex-partner dependent on the pensioner for payment of pension benefits.
Under the bill, the ex-partner will get his own right to the pension benefits by default. This is referred to as conversion. Pension entitlements will be converted from entitlements in the name of the pensioner to entitlements in the name of the ex-partner. The ex-partner is then no longer financially dependent on the pensioner for the pension. The pension insurer will then pay the pension directly to the ex-partner.
Under the current Wvps, conversion of pension entitlements can be chosen upon divorce. But this usually does not happen in practice. Under the new Wps, partners can choose not to convert.
Special partner's pension
Under the current Wvps, the ex-partner is entitled to:
- 50% of the retirement pension accrued during the marriage;
- 100% of the partner's pension accrued until the divorce (this is also known as the special partner's pension).
The special partner's pension under the new Wps is still only 50% of the partner's pension accrued during the marriage.
Cohabitants
The Wps, like the current Wvps, will apply only in case of divorce. The ex-partner in a cohabitation relationship will not be entitled to 50% of the retirement pension accrued during cohabitation. However, the ex-partner is entitled to the special partner's pension (50% of the partner's pension accrued during cohabitation). But the partners must then request this from the pension scheme administrator.