Indexation is the periodical adjustment of pensions in payment and deferred pensions (non-contributory pension entitlements) by a certain percentage. There are two types of indexation:
- Indexation when you work and accrue pension
- Indexation when you receive pension or have left Shell employment
Indexation when you work and accrue pension
In case you are accruing pension at Shell, your pension is adjusted unconditionally each year. Unconditional indexation means that adjustment takes place automatically, the Board is not required to pass any resolution in respect of this.
Indexation when you receive pension or have left Shell employment
When you have accrued pension at Shell, your pension is adjusted conditionally each year. In the case of conditional indexation the Board decides whether will adjustment take place. The general principle is that the Pension Fund endeavours to align pension rights and pension entitlements with the rise or fall of the derived consumer price index for all households with effect from February 1 of each year, as determined by Statistics Netherlands (CBS), over the reference period of November of the preceding year to November of the current year.