Financial matters
In the light of the turmoil in the world of finance, the financial position of the Pension Fund may be considered as reasonable. There is currently no cause for concern. Shell Asset Management Co., the organisation responsible for managing the Pension Fund’s assets, gave an explanation of how the Pension Fund’s securities are maintained. Investigation into the rise in medical expenses
Further to the advice of the Members’ Council regarding the annual indexation of pensions in payment, the Board had asked the Pension Fund’s Manager to take a closer look at the development of medical expenses. The results of this investigation were presented at the meeting, revealing that people with higher incomes are paying between 5 and 15 per cent more in 2008 compared to 2005. Conversely, people with lower incomes, and married people in particular, have benefited, mainly as the result of an extra rise in state pension benefits (AOW) and the means-tested healthcare allowance (Zorgtoeslag). The Members’ Council will devote further study to the results of this investigation. Amendment of the Actuarial and Operating Memorandum (ABTN)
The new Pensions Act (Pensioenwet) and the recently published Pension Fund Plan 2008-2010 have necessitated the amendment of certain aspects of the Actuarial and Operating Memorandum (Actuariële en Bedrijfstechnische Nota, ABTN)*. These amendments relate to such matters as the requisite net assets, the Statement concerning investment principals and the survival tables. These tables indicate life expectancy and are used to calculate the Pension Fund’s liabilities. The Members’ Council has since received a Request for Advice in this regard. Indexation label
Pensions funds are required to use the Indexation label (Toeslagenlabel) with effect from January 1, 2009. This legal obligation involves the use of a pictographic representation to provide simple information to participants regarding the degree to which a pension fund realises its policy on supplements. The Shell pension scheme is based on the final pay system, which is why this label does not apply to the Shell Pension Fund’s active participants. The label will be used in the annual indexation letter, relating to the indexation of pension entitlements and pension rights of former participants and those entitled to pension benefits. Expertise
Agreement was reached with the Members’ Council regarding the requisite level of expertise. The next meeting between the Members’ Council and the Pension Fund’s manager will be held on November 12, 2008. ----------
* The Pension Act obliges the Pension Fund to establish an Actuarial and Operating Memorandum. De Nederlandsche Bank assesses the Memorandum to determine whether the Pension Fund is maintaining a sound financial structure.
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