2016 was a year of keeping on track and making progress on the Board’s strategic agenda. Despite the positive return on investment, the impact of falling interest rates on balance put constant pressure on the funding ratio, which moved further away from the required level. Nevertheless, there was still room to grant indexation of pensions in payment, which certainly cannot be taken for granted in this day and age. The Board is committed to realising its goal of maintaining a well indexed pension.

An extensive study into the amount of the contribution and how this is determined resulted in a new, future-proof contribution methodology. The actual contribution decreased as a result, but from now on will move with the wage trend at Shell in the Netherlands and with the average age of the active participants.

The multi-annual project to simplify pension administration is complete. This is a prerequisite for outsourcing pension administration and communication activities in a controlled manner from 2018. After a thorough study of the market and an extensive process, Syntrus Achmea Pension Management was selected. It is already the external service provider for Shell Nederland Pensioenfonds Stichting (SNPS). This enables us to create a “one-stop-shop” for participants, with an overview of gross and net pension entitlements. This contributes to the Board’s goal of putting participants first and helping them to plan for retirement.