1 / 15

Shell Pension Fund Netherlands

Shell Pension Fund Netherlands. 19 th May 2010. Relationship: Employer - Employees – Pension Fund. Employer / admitted companies. Pension agreement in (collective) employment contract. Execution agreement. Employee. Stichting Shell Pensioenfonds. Trust deed / Regulations.

stacie
Télécharger la présentation

Shell Pension Fund Netherlands

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Shell Pension Fund Netherlands 19th May 2010

  2. Stichting Shell Pensioenfonds Relationship: Employer - Employees – Pension Fund Employer / admitted companies Pension agreement in (collective) employment contract Execution agreement Employee StichtingShell Pensioenfonds Trust deed / Regulations

  3. Pension Fund organization Shell Pension Fund Foundation (SSPF) • Pension arrangements of Group companies in the Netherlands • Board of Administrators • Participants’ Council Shell Pension Fund Management (SPN) - 20 staff • SPN has been appointed as Director, administers the pension arrangements and advises the board of SSPF and the employer • Supervisory Board Shell Asset Management Company (SAMCo) - 120 staff • SAMCo has been appointed as the asset manager for SSPF • Supervisory Board

  4. SSPF Board of administrators (BoA) • Parity representation of employees and employers • Four representatives of the member companies • Four representatives of the employees • Members BoA appointed by SPNV (employee representatives on recommendation of the Central Staff Council) • The BoA shall address the interests of all Pension Fund members and all other interested parties and ensure that they can feel represented in a balanced manner.

  5. Participants Council (PC) • The PC advises the BoA on important matters with regard to the Fund, either on request or on their own initiative. • Twelve members, appointed by Shell Petroleum NV • Representatives of fund members in active service are nominated by the Central Staff Council of Shell in the Netherlands • Representatives of retired fund members (including fund members with an early deferred pension) are nominated by the Shell Pensioners Club (VOEKS) • Composition as per 1/5/2007: 4 active participants, 8 pensioners

  6. Additional governance requirements from 1st January 2008 • Based on principles of good Pension Fund Governance agreed between social partners and the pensions sector • Transparency and accountability key issues • 2 additional bodies were instituted: - Tripartite Accountability council: employees, employer and pensioners - Internal Supervisory committee: independent experts

  7. SSPF key data • Participantsactive 11.226 (15% outside Netherlands)deferred 7.010 (13% outside Netherlands)pensioners 19.300 ( 7% outside Netherlands) • Admitted companiesNetherlands 23Abroad 170 in 57 countries • Pension schemesShell 12Billiton 8 • Liabilities € 12,500 billionAssets € 15,400 billion Data ultimo 2009

  8. Funding principles and asset management • Based on Dutch Solvency regime • High commitment from Employer/sponsor • Sponsor provides high level Pension fund management guidelines and risk and funding targets • Guarantee from sponsor in case of insolvency • Advanced ALM model and strategic asset allocation • High equity ratio and international diversification in portfolio • In company professional asset management

  9. Pension as important benefit • Shell differentiates pay for performance, ‘benefits’ and so called ‘facilities’ • Shell focuses more and more on reward for achievement(performance based pay) • ‘Benefits’ are part of Employee Value Propostion: “to recruit and retain staff”. Retirement benefits are included in this EVP. • ‘Facilities’ provide the employee comfort, but are not included in the employee’s decision on joining, staying or leaving the company.

  10. The Shell scheme in brief • Target retirement age 65 • Actual retirement age: choice of any age between 55 and 65 and between 65 and 70 with employer consent • Old age pension based on final salary • Partner pension is 70% of old age pension • Orphan pension is 14% of total partner pension • Incapacity pension: percentage of salary • Flexibility in benefits • Benefit indexation ambition conditional on financial condition fund • Employee contribution: minimum 2% of salary, 8% on salary above € 75.000 • Employer contribution for 2007: 31,6 % of total salary bill

  11. Old age pension (OAP) • Pension formula: OAP = pension years x pension base x accrual percentage • Accrual percentage: 1.1 % of pension base up to € 28,506 2 .0 % of pension base between € 28,506 and € 63,659 1,75 % of pension base between € 63,659 and € 106,578 1,5 % of pension base above € 106,578

  12. Partner pension • Life long partner pension: 70% of old age pension • In case of death in service, projected years between death and age 65 are included in calculation • Applies to:- married partners- legally registered partners - cohabitating partners registered with the pension fund • Supplementary partner pension for partners under age 65 of 1.6% of € 28,506 for each pension accrual year: compensation for not qualifying for State widow benefit and not yet receiving State old age benefit:

  13. Orphan pension • Orphan pension: 14% of total partner pension • Children under age 18 qualify • If in full time education up to age 24 • If both parents have died: orphans pension is doubled

  14. Incapacity pension • Granted if earning capacity is less than 20% • Assessment is made by medical doctor appointed by the Board of Administrators • Benefit: 100% of salary up to € 63,659 70% of salary above € 63,659 • Benefit is paid until reaching age 65 • Pension accrual continues • At reaching age 65 old age pension is based on number of years in active service + number of years in receipt of incapacity pension

More Related