A - E

A

Accrual percentage

The percentage of the salary that you accrue each pension year in the form of pension entitlements.

Actual contribution

The contribution established to finance the costs of the pension scheme. These are annual costs required to finance pension entitlements accrued during the year in question.

Actuarial and Operating Memorandum (ABTN)

(Actuariële en BedrijfsTechnische Nota, ABTN). A document produced by the Board establishing the Funding, Indaxation and Investment policies of the Pension Fund.

AFM : Authority of Financial Markets (Autoriteit Financiële Markten).

One of AFM's tasks is supervising the provision of information by pension administrators. This supervision is laid down in the Pensions Act.

AOW : See: General Old Age Pensions Act

AOW age : The age at which you receive AOW for the first time. The maximum Statutory retirement age is 67 according to the General Old Age Pensions Act as is applicable to your retirement date.

Anw : See: Survivor's Benefits Act

Assets

The resources (the financial capital and the value of the investments) that the Pension Fund has available to meet its liabilities.

AvA (Algemene vergadering van Aandeelhouders)

The General Shareholders’ Meeting.

B

Benchmark

An objective criterion, e.g. a stock exchange index, that the Pension Fund can use to compare the performance of its investments.

Certificate of life

A certificate stating that you are alive.

Company pension fund

A pension fund associated with an individual company and not with a sector of trade and industry.

Consumer Price Index (CPI)

Also referred to as the price index for all households. Figure that represents the average price movement of a package of goods and services purchased by households for consumption. Expenditure relating to healthcare insurance, income tax or social security contributions does not form part of this package.

Conversion

On your retirement date you can exchange some or all of your partner’s pension for a higher retirement pension, or vice versa; this is known as exchange or conversion.

Corporate Governance

Sound management practice. In the Netherlands, rules have been laid down for this in the Netherlands Corporate Governance Code, also referred to as the ‘Code Tabaksblat’.

Currency hedging

By hedging against the risks associated with foreign-currency exchange rates, the Pension Fund ensures that fluctuations in the values of these currencies against the Euro have no effect on the value of the Pension Fund’s investments. 

Deferred entitlement holders : See: Former Participant.

Deferred pension 

A pension that is no longer accruing and for which you are not paying contributions, for example if you have left Shell service. You are eligible to receive the pension that you accrued until that time. The pension will not be paid until your retirement age.

See also: non-contributory entitlements  

Derived consumer price index

The Consumer Price Index (CPI) reflects the price development  of a package of goods and services, as they are generally purchased by households in The Netherlands. Not all cost components are included in the package, e.g. income tax, social security contributions and healthcare expenses. The Derived CPI reflects the regular CPI, without the developments indirect taxation (e.g. VAT and excise on alcohol and tobacco) and subsidies. Statistics Netherlands calculates and publishes the Derived CPI on a monthly basis.

Disability pension / Disability

The pension that you as a participant receive if you become disabled.

You are deemed to be disabled if, in the opinion of the Pension Fund, you are unable, due to sickness, deficiency, pregnancy or confinement, with little likelihood of recovery, to earn more than 20 per cent of the salary that healthy persons with similar qualifications and experience generally earn.

Disablement Benefits Act (WAO)

The Disablement Benefits Act (Wet op de ArbeidsOngeschiktheidsverzekering, WAO). Replaced by the Work and Income according to Labour Capacity Act (Wet Werk en Inkomen naar Arbeidsvermogen, WIA) with effect from 1st January 2006.

DNB : The Netherlands National Bank (De Nederlandsche Bank).

One of DNB’s tasks is supervising the operations of pension funds in line with the provisions as laid down in the Pensions Act. 

Employee

This is you if you are in the service of or associated with the organization of an employing company.

Employing Company

This is a company that has joined the Pension Fund.

Enrolled partner

The partner with whom you live together, and with whom you have concluded a cohabitation agreement before a civil-law notary and who you have enrolled in the Pension Fund as your partner’s pension beneficiary.

Exchange

On your retirement date you can exchange some or all of your partner’s pension for a higher retirement pension, this is known as exchange or conversion. 

F - O

Fixed-interest securities

Investments with a fixed yield, such as bonds.

Former Participant

You are a Former Participant when you, as a former employee, are no longer accruing any pension entitlements and have a right to non-contributory pension entitlements that are not yet in payment.

Full-time employment

Employment in which the employee works the standard number of hours designated for his position. This is usually a 40-hour working week during the daytime. Other standards apply to the 24-hour shift system.

Funding ratio

The ratio between the assets and the pension liabilities at a point in time.

General Old Age Pensions Act (AOW)

(Algemene Ouderdomswet, AOW) The basic Dutch State pension. The General Old Age Pensions Act contains a supplement for younger partners who have only a low income or no income at all. This supplement will be discontinued as of 1st January 2015. The Social Insurance Bank (Sociale Verzekeringsbank, SVB) administers the General Old Age Pensions Act.

H

Healthcare insurance

The insurance for medical treatment that you are required to take out pursuant to the Healthcare Insurance Act if you are living or paying wage tax in the Netherlands.

Hedge funds

Investment funds holding long positions (buying securities in the expectation that they will rise in value) and short positions (the sale of borrowed securities with the expectation that they will fall in value) at the same time. The aim is to generate stable returns that are independent of the general trend on financial markets.

High/low

High/low pension is a variation in which the retiree opts for a higher retirement pension in the years following his retirement and for a lower retirement pension in the ensuing years. Under the tax legislation, the maximum permitted variation between the highest and lowest pension level is 100:75. 

Indexation

Adjustment of pensions entitlements (in payment) and deferred pension entitlements with a supplement. 

Life cycle savings scheme

A savings scheme under which you are entitled by law to save part of your gross salary for a period of unsalaried leave. The life cycle savings scheme is unrelated to the pension scheme.

Low / high

Low / high pension is a construction in which the retiree opts for a lower retirement pension in the years following his retirement and for a higher retirement pension in the ensuing years. Under the tax legislation, the maximum permitted variation between the highest and lowest pension level is 100:75. 

M

Market value

Value at the time of sale. In the case of investments: the value of an investment if it were to be sold. 

Net pension arrangement

Pension arrangement in which you can take part if your pensionable salary exceeds the fiscal upper limit. Above this limit you may only accrue pension from your net salary (after taxes)

Non-contributory entitlements

If, for example, you leave the Company's service prior to your retirement date, you are eligible to receive the pension entitlements that you accrued until that time. These are your non-contributory entitlements. The pension will not be paid until your retirement age. You are not required to pay any more contributions until that time.

Official retirement age

The retirement age as stated in the Regulations.

Orphan

A child of a deceased Participant, Former Participant or Retiree.

Orphan’s pension

The pension to which your children are entitled up to the age of 18 in the event of your predecease. In the case of orphans pursuing academic studies, the orphan’s pension shall remain in effect until no later than the month of August following the orphan’s 24th birthday. 

P

P

Pension Basis

Your salary (12 months plus lump-sum payment in April and/or December) plus any Pensionable Supplement(s) to which you are entitled at that time plus 3% till € 115,300 (level 2016). The pension contribution you are required to pay is calculated on this basis.

Pension contributions

You are required to make monthly pension contributions. This is calculated in relation to your Pension Contribution Basis and withheld from your monthly salary.

Pension entitlements / pension rights

Pension entitlements are being accrued or have not yet commenced. Pension rights are being paid. When a pension entitlement commences it becomes a  pension right, according to the Pensions Act.

Pension Fund Governance

Sound pension fund management.

Pension notification period

The number of months from the time that you announce that you plan to retire and your actual retirement date. The notification period is at least 6 months and no more than 12 months.

Pension Settlement (Divorce) Act

In the case of divorce, judicial separation or termination of a registered partnership, the former partner is also entitled to part of the retirement pension. This is realized pursuant to the Pension Settlement (Divorce) Act (Wet verevening pensioen bij scheiding). Under the Act, the former partner is eligible for half the retirement pension accrued during the period of the marriage. However, partners may agree a different distribution.

Pension statement

Summary of your pension entitlements sent to you annually as a participant.

Pension years

Your number of pension years is in principle equal to the number of years in which you were in full service (100%) of Shell. If you worked part-time for a certain period, those years will count proportionately toward this. You may have extra pension years deriving from tropical or fleet service, if you have credit years, or if you have transferred pension entitlements from a previous employer. 

Paid-up (pension) entitlements : See: Non-contributory entitlements

Parallel pension

A pension to which you are entitled in addition to your Shell pension.

Parental leave

Unpaid leave intended specifically for the care of children younger than 8 years of age.

Participant

You are a Participant if you are in the service of a Shell company and are accruing pension entitlements with the Pension Fund.

Partner

Your spouse, the person with whom you have concluded a legally registered partnership or your enrolled partner.

Partner’s pension

The pension to which your partner is entitled in the event of your predecease.

Part-time employment / Part-time percentage

Employment in which you work fewer hours than the standard number of hours designated for your position. Your part-time percentage is an indication of your working hours as a percentage of the standard number of hours per week.

Part-time retirement / Part-time pension

You can take out part-time retirement. In that case a part-time pension can be drawn while you remain in employment for 80%, 60% or 50% of your original working hours.

Pensionable Supplement

Any salary supplement that is taken into account when calculating your pension entitlements. A Pensionable Supplement is expressed as a percentage of your Pension Base Salary and is included in your pension basis according to the number of years (or: pro rata). The employer decides which supplements are pensionable.

Pensions Act

The Pensions Act (Pensioenwet). The objective of this Act is to safeguard pensions granted to employees.

Private equity

Investments in funds or enterprises not listed on the stock exchange.

Proportional supplement

The number of pension years that you were entitled to a pensionable supplement in relation to your total number of pension years, multiplied by the percentage of your supplement. In other words: if you were entitled to a pensionable supplement for a period of 15 years and you have accrued 30 pension years at the time you retire, your proportional supplement is 15/30 x your supplement percentage.

Provision for pension liabilities

Value of the accrued pension entitlements and pension rights.

Q - S

R

Registration number

The number under which the Pension Fund administers your pension entitlements.

Retiree

You are a Retiree when you are receiving a retirement pension from the Pension Fund.

Retirement age

The age at which you retire, in principle 67 years of age. You may opt for a different age however: between 55 and 67. In consultation with your employer, you may also opt for an age between 67 and 70.

Retirement date

The date on which you retire; this is the last day of the month in which you reach the retirement age.

Retirement pension

The pension that you receive from your retirement date.

Risk coverage

Insurance has been taken out in respect of the risk of your predecease or your becoming disabled during a period of leave and the employer pays the relevant contribution for this. This ‘risk coverage’ ensures that, in the event of your predecease during a period of leave (or your becoming disabled), the pension years that you would otherwise continue to accrue until your official retirement age will be factored into the calculation of the partner’s pension (or the disability pension). 

Salary

Twelve times your monthly salary plus the lump-sum payments in April and/or December (the 13th and 14th months).

SAMCo : Shell Asset Management Company B.V.

Responsible for implementing the investment policy of the Pension Fund and managing the invested capital. Advises the Board in respect of investment policy.

SVB: Social Insurance Bank (Sociale Verzekerings Bank) is responsible for administering various pension and insurance schemes, including benefits granted under the General Old Age Pensions Act for people from the AOW age as it applies on the retirement date.

Solvency

An indication of the Pension Fund’s capability to make payments.

Special partner’s pension

The partner’s pension accrued until the divorce date that your former partner receives in the event of your predecease. This is deducted from the partner’s pension that your new partner, if you have one, would otherwise be entitled to.

SPN : Shell Pensioenbureau Nederland B.V.

Shell Pensioenbureau Nederland B.V. (SPN) is the manager (management company) of the Pension Fund, administers the pension scheme and supports and advises the Board on governance, actuarial matters, asset- and risk management and pensions policy.

SSPF : Shell Pension Fund Foundation (Stichting Shell Pensioenfonds)

The official name of the Pension Fund.

Supplementary partner’s pension

Supplement to the pension to which your partner is entitled up to the first day of the month in which he/she reaches the AOW age as it applies on the retirement date, or at the latest on your pension date according to the regulations in the event of your predecease.

Survivor's Benefits Act (Anw)

Benefit received under the Dutch National Survivor's Benefits Act (Algemene nabestaandenwet, Nabestaandenuitkering Anw) is a government benefit that is granted following the predecease of a partner or parents. Eligibility for this benefit depends on a number of conditions. The Social Insurance Bank (Sociale Verzekeringsbank, SVB) administers the Survivor's Benefits Act on behalf of the government. 

T - Z

Temporary pension until AOW age 

The pension paid on top of your retirement pension. A temporary pension is discontinued from the first day of the month in which you reach your AOW age as it applies on the retirement date. Under the fiscal rules, a temporary pension may not exceed the benefit for a married couple as awarded under the General Old Age Pensions Act (AOW).

The Pension Fund

The Shell Pension Fund Foundation (Stichting Shell Pensioenfonds, SSPF).

U

Unpaid leave

A defined period during which, with your employer’s approval, you do not carry out any work and during which you do not receive any salary.

UWV : Uitvoeringsinstituut Werknemersverzekeringen.

Administration of, amongst others, unemployment benefits (WW) and disability benefits (WIA). 

Value transfer

Transfer of pension rights accrued with Shell to a pensions administrator of a new employer, with the aim of minimising pension discontinuity wherever possible. 

WAO : See: Disablement Benefits Act

WIA : Work and Income according to Labour Capacity Act

(Wet Werk en Inkomen naar Arbeidsvermogen, WIA). This Act replaced the Disablement Benefits Act (Wet op de ArbeidsOngeschiktheidsverzekering, WAO) with effect from 1 January 2006.