Payout

How payout happens

As a rule, your accrued funds will be paid out to you when you reach the standard retirement age for statutory pension insurance. This is usually at age 67. However, you can claim the benefits early from age 60 (if you joined JTI until 2011) or age 62.

However, benefits are also payable if you become incapacitated or die before retirement. Then, too, the retirement funds are paid out to you or your surviving dependents – plus an additional risk coverage.

Forms of payout

Installments:

As a rule, your retirement funds are paid out to you in 10 annual installments. For tax purposes, payouts begin in February of the year following retirement. Interest is paid on your balance until it is paid out. If your saved capital is no more than € 15,000, the entire money is paid to you as a lump sum.

Annuity:

With JTI's approval, you can also have your retirement funds paid out as a lifelong annuity. In this case, your balance will be converted into monthly pension payments. Your annuity will increase by 1% each year. In the event of death, your surviving dependents (spouse, registered partner, children entitled to child benefits) will receive a death benefit worth 60 % of the remaining pension entitlement. This can be paid out as a lump sum, in installments or as an annuity.

Lump sum:

Up to a balance of € 15.000, a lump sum is paid out. For tax reasons, the payment is made in February of the year following retirement. Unlike the annuity, lump sum and installments can be bequeathed freely after payout has begun.

Risk

Disability

Risk coverage is an extra plus for your protection should you become disabled or die before age 60. Up to age 40, protection is especially high because you have had little time to build up your retirement account.

If you become disabled before age 60, you will receive a supplemental risk benefit. Until you reach age 40, it is 1,5 times your current annual compensation. From the age of 40, we will deduct 5% from this amount for each year between age 40 and disability or death. In addition, of course, there is always the retirement funds in your accounts. The supplementary risk benefit is paid out in annual installments.

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Death

The same supplementary risk benefit as in the event of disability is paid to your surviving dependents in the event of death. This includes your spouse, registered partner, or children entitled to child benefits. Here, too, the retirement funds in your accounts are added. In this scenario, the supplementary account can also be distributed to a life companion.

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Early retirement

You can start drawing on your company pension from the age of 60 (if you joined JTI until 2011) or 62. Early retirement also pays out the existing account balance.

If you choose to take an annuity payment, it will be lower because it will be paid over a longer period of time.

What to do now

You must apply for the payout informally. The best way to do this is to simply send an email to People & Culture. HPK has an online form for the same purpose.

Taxes and social security contributions

Savings phase:

No taxes are due on JTI’s contributions during your working life. Nor for your own contributions – how saving taxes works is explained here.

Pension phase:

The payout is taxed regularly, just like your salary used to be at JTI. However, your income in retirement is usually lower – and so is your tax rate, so you generally pay less taxes than during your working life. There are no longer contributions to pension and unemployment insurance. However, full contributions to health and long-term care insurance are due. This means that the portion previously paid by the employer is now payable by you.