The level of contributions and the way in which they are calculated were taken into consideration again. The 40% contribution was compared with the Dutch pension sector and given the minimum statutory requirements for contributions it is exceptionally high. Furthermore, the Board wanted to see confirmation that the calculation method is in line with requirements set by the new Financial Assessment Framework(nFTK).
The follow-up study was conducted based on assumptions from the 2015 ALM. A new mechanism for calculating contributions was developed on the basis of the results of this study. From July 1, 2016, pension contributions are no longer a percentage, instead they keep pace with salary developments at Shell in the Netherlands and the average age of active participants. A decision was also made to opt for contributions that will be appropriate and remain above the lower statutory limit in the future.
Consequences for participants and retirees
The adjustment to the funding policy has no consequences for participants or retirees. Participants continue to pay contributions of 2% and there is no impact on accrued pension or the level of future pension accrual. Retirees' and former employees' expectations for indexation remain at the same level.
As of July 1, 2016, total contributions are 18%. The Board revises contributions annually.