Financial stability and security

Survivors’ pensions
The Pension Fund pays temporary pensions to spouses or partners, divorced spouses and children provided the conditions set out in the rules are met. The spouse’s pension for active members amounts to 60% of the disability pension.
Partner’s pensions are only paid on application. The application must be submitted no later than three months after the death of the member, otherwise the entitlement lapses.

Further information is provided in the rules.

Death benefit
The minimum death benefit in the case of active and disabled members who die before retirement is 100% of the insured salary.

Depending on the case, a higher amount may be paid out. The relevant provisions are set out in the rules.

In the event of death before retirement, personal buy-ins into the Hitachi Group Pension Fund are paid to the surviving dependants as an additional death benefit, including interest and taking into account any early withdrawals for home ownership and divorce payments.

Irrespective of right of inheritance, the survivors are entitled to payments in the following order of precedence and amount:

1. the spouse and children entiteled toa a pension; in the full amount
2. partners or individuals who were supported to a substantial degree by the deceased member before his or her death; in the full amount
3. other children, parents or siblings; in the full amount
4. other legal heirs, excluding the state, in half the amount

You may determine which persons among the eligible group are entitled to the death benefit, and in what proportions, by submitting written instructions to the Pension Fund. The instructions must be submitted during your lifetime. If no such instructions are given, the death benefit is divided equally among the eligible group.

 * In the absence of the preceding level, the next level in the order of precedence becomes eligible.

Members with a recognised disability are entitled to a temporary disability pension from the Pension Fund. The disability pension will be paid out until regular retirement age from which point onwards a retirement pension will be paid. The amount of the disability pension depends on the degree of disability as defined by the disability insurance scheme (IV). The full disability pension amounts to 60% of the insured salary.

Retirement benefits can be drawn from age 58 to age 70, with the standard retirement age being 65. The notice period for retirement is two months.

Where members who are liable to pay contributions retire between the age of 63 and 65 until 2028, they are entitled to a monthly bridging pension, provided that they have contributed for at least five years. The bridging pension is equal to the maximum AHV retirement pension applicable at the time of retirement and is financed by the employer.

Retirement benefits can be drawn as a pension, as a one-off lump-sum capital payment or as a hybrid involving both capital and pension. Where members plan to draw the retirement benefit either fully or partially as a lump sum, they should carefully weigh up the pros and cons of capital versus lifelong pension. Personal circumstances, financial circumstances and personal plans for the time after retirement all play an important role in the decision.

The annual pension is calculated by means of the conversion rate. The amount depends on the retirement age and corresponds to a percentage of the accrued capital. The current conversion rates can be found in the appendix to the rules.

Where members draw part of their savings capital as a lump-sum, the retirement pension and the other insured benefits are reduced. Withdrawal of the entire savings capital as a lump-sum terminates all further claims against the Pension Fund.