The payout period of the supplementary pension at AG - AG Employee Benefits
Group insurance payout, a key event

Published on 19/03/2024


Are your employees waiting for their supplementary pension to be paid out?

This probably sounds familiar: you have an employee nearing retirement and eagerly awaiting a group insurance payout. But how exactly does all this happen? And what is the exact payout period? Take a look behind the scenes at AG!

The payout of a supplementary pension is a happy occasion for your employees. They know the amount they can expect thanks to the gross-net simulator and have already made plenty of plans for a major project, or picked up information about a profitable investment. 

But when will the amount of their supplementary pension actually be paid out? Within 30 working days of retirement? Reports of long waiting times are currently circulating in the media. But what exactly is the situation at AG? We would like to give you an insight into the different steps in the payout procedure for pension plans taken out by the employer. For plans set up by an industry as organiser, there is a completely different procedure, with different payout periods. We explain the differences! 

Paymen​t of a pension plan through the employer

Step 1 - Your employee's retirement date is set

Your employee can submit the application for statutory retirement through MyPension at the earliest 12 months and at the latest 1 month before the desire​d effective retirement date. As an employer, you do not need to inform AG when your employee retires. The government agency Sigedis, responsible for managing the Federal Pension Service's Supplementary Pensions Database, notifies us of statutory retirement through MyPension. ​

Step 2 - We contact your employee

We will write to your employee 2.5 months before retirement date. The letter (with quite a few attachments) will provide a clear overview of the details that should be provided to us as soon as possible. We start by collecting all the necessary information to make the payout, such as the bank account number where we can deposit the supplementary pension, certain certificates etc.​

Step 3 - Your employee provides us with the necessary information

The quickest way for your employees to provide us with all the data is through the MyAG Employee Benefits digital tool. Here, they will find a clear online overview of all the supplementary insurance policies you took out for them, and the amount they will receive after retirement, both for dormant and active contracts.

71% of employees retiring prefer the digital approach, which allows for quick processing of the application!
​It is also possible to provide us with all the data via e-mail or on paper. In the latter case, the employee has to fill in a lot of forms and send everything by post, which takes more time. The quickest and simplest way is to apply through the MyAG Employee Benefits​ digital tool. ​

Step 4 - The payout

Once we receive the requested data and certificates, we check everything. If necessary, we will ask for additional information to complete the file. 

We aim to have all necessary data in our possession three weeks before the retirement date so that we can pay the supplementary pension within 30 days of retirement. 

Nonetheless, there may be two reasons why payout cannot occur within this period:

  • The insured did not provide us on time with the necessary documents for payment.
  • MyPension notified us of the retirement date too late - this can range from less than a month before the retirement date to even months after it. 

However, there are not a great deal of delays. We have requested a recent summary of payout periods for you:
    • ​75% of applications are paid out within the month.
    • ​90% of all applications are paid out within three months.
    • ​Only 3% are paid out after 6 months (in 70% of cases because we were told about the retirement date too late).

The payout period for sector plans

For a group insurance policy that the employee benefits from through an industry as organiser, it is a very different story. 

The way we receive the information needed for the payment of the supplementary pension is totally different for sector plans, which has a big impact on the payout period. 

For sector plans, the last quarterly premium must be allocated to the employee's contract before they receive their supplementary pension capital payout. Sector organizations receive the necessary data to calculate these premiums from the National Social Security, with a delay that can exceed 6 months. This information is passed on to AG, and only then can we process the data and payout the capital. 

Payment can only be made once we have received all the necessary information and documents. This affects the disbursement deadlines of the sector plans:

    • ​19% are paid out within a month,
    • 32% are paid out within three months,
    • ​41% are paid out within six months,
    • 59% are paid out after six months.

What does the future hold?

Good news, as from next year we will definitely be able to shorten payout periods even more thanks to the various measures the Pensions Minister set out in the renowned Transparency Act. We will receive the data through MyPension faster. 

An improvement is also in sight for the sectors, but this will not be immediate as they are subject to a transitional arrangement: until 1 January 2027, the anticipated 1-month payment period can be extended by 6 months if necessary for the correct calculation of entitlements.

Useful info for your employees

Do your employees ask questions about the amount and payout of their supplementary pension? Tell them to sign up to MyAG Employee Benefits​, where they will find plenty of answers to frequently asked questions and a clear and up-to-date overview of the benefits you provide them with as an employer. This information is available either on their PC or via the app, bringing extra clarity to supplementary pension benefits.  

Moreover, through the MyAG Employee Benefits platform, they can request the payment of their supplementary pension online.

You can also direct them to the detailed information on our website: 'I’m retiring (soon)'. AG remains committed to providing clear and transparent information at key moments.