Unconditional indexation Indexation is unconditional for certain pension elements. These are specified in the Regulations. They are adjusted automatically on 1st July of each year without the Board being required to pass any resolution in this respect. These elements include: - compensation for uninsured years accrued before 1st January 2006: this is adjusted on the basis of the development of AOW benefits; - disability pensions in payment: these are recalculated on the basis of the salary group maximums at Shell in The Netherlands; - partner’s and orphan’s pensions in payment for which the retirement date of the deceased participant has not yet been reached: these are adjusted on the basis of the development of salary group 15 of Shell. Conditional indexation Indexation is conditional for all other pensions in payment and non-contributory pension entitlements. |
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The Board decides each year whether an adjustment is to be implemented. The general principle is that the Pension Fund endeavours to align pension entitlements with the rise or fall of the derived consumer price index, as of 1st July of each yeart, as determined by Statistics Netherlands (CBS) over the reference period from March of the previous year to March of the current year. No specific reserves have been formed for this conditional adjustment and no contributions are paid to cover this. The granting of indexation is paid out of return on investment. Once indexation has been granted, it becomes unconditional. Other factors and Five-yearly evaluation The Board may decide, as a result of, among other things, developments in social security, healthcare or Shell salaries in the Netherlands, to grant a supplement in addition to the conditional indexation described above. Any decision to grant such a supplement is at the discretion of Board. The execution of the Indexation policy will be evaluated every five years. |
