Shell offers all employees whose pensionable salary exceeds the permissible fiscal limit (amount for 2017: € 95.672) the opportunity to continue to maximise their savings towards their retirement pension. The pension contributions you pay into the net pension scheme are subject to tax. Conversely, pension benefits paid out under that scheme are untaxed after your retirement. In the (gross) SSPF pension scheme in which you are a participant it is the exact opposite.
The legislation stipulates that a net pension scheme must be a ‘defined contribution scheme’. In that type of scheme the employer makes contributions, which are paid by the employer and employees, to the pension fund. This is also the case for the current (gross) SSPF pension scheme in which you are a participant.
Furthermore, in a defined contribution scheme participants can themselves choose the level of risk in relation to the investment of pension contributions, within certain limits.
Advantages of participation in the net pension scheme
The scheme makes optimum use of the opportunities offered by the tax legislation in force from January 1, 2015:
- Possibility to continue accruing pension on salary that exceeds the fiscal limit
- Your entire contribution goes towards your pension, without any deduction of operating costs or profit margins
- Your partner will be guaranteed a pension based on your full salary if you die
- Pension capital accrual continues in the event of total and permanent disability
- Maximum exemption on saved pension capital in box 3 (no wealth tax)
If you decide not to participate in the net pension scheme, the net allowance will be paid to you by Shell with your salary each month. However, you are then less well covered and run the risk that your income (and that of your dependants) will fall sharply following your retirement.
This net pension scheme is administered by Shell Nederland Pensioenfonds Stichting (SNPS).