YOUR SHELL NET PENSION if your pensionable salary per year exceeds the fiscal upper income limit

Welcome to the Shell net pension scheme. Government has set a fiscal limit on the amount of gross annual income that can be used to accrue a pension. Above this limit only net income (after income tax) can be saved towards a pension. Pension benefit is not taxed after retirement: a net pension. Read more about accruing pension capital towards the net pension and the advantages of the Shell net pension scheme in this brochure.

Shell Nederland wants to provide you with a good pension scheme where it remains possible for you to accrue an adequate pension, also over that part of your pensionable salary above the fiscal limit. A scheme in which dependants are well covered in the event of your death and which provides continued pension capital accrual above the fiscal limit in the event of full and permanent disability. Therefore Shell has set up a net pension scheme for employees on pensionable salaries that exceed the fiscal limit. The Shell net pension scheme makes optimum use of the possibilities provided by the tax legislation. Shell thereby ensures that you achieve the maximum permitted accrual. The entire contribution goes towards your pension, without any deduction of operating costs or profit margins. Who is it for?

Further on you can read what you need to do if you do not

The net pension scheme is intended for participants whose

wish to participate in the net pension scheme.

annual salary will exceed the permitted fiscal limit. Calculation of the accrual is different for the SSPF and SNPS pension

What is a net pension scheme?

schemes and therefore the fiscal limit is also different:

The net pension scheme is an individual defined contribution

1. You entered company service before July 1, 2013.

scheme. This means that contributions from the portion of

Then you are a participant in Stichting Shell Pensioen-

your salary that exceeds the fiscal limit of € 88,500 are

fonds (SSPF) and for you the permitted fiscal limit is

saved individually towards your pension capital. Monthly

€ 92,600 (level 2015).

contributions are invested, which always involves some in-

2. You entered company service after July 1, 2013. Then

vestment risk. Your accrued pension capital develops based

you are a participant in Shell Nederland Pensioenfonds

on the monthly contributions and the yield on investments.

Stichting (SNPS) and for you the permitted fiscal limit is

Your accrued pension capital is not subject to income tax

€ 88,500 (level 2015).

in box 3 (capital gains tax). When you reach retirement you use your accrued capital to purchase a lifelong retire-

The net pensionscheme is voluntary. You may choose not to participate. However, Shell assumes that you will want to participate in the Shell net pension scheme for your salary that exceeds the fiscal limit. If this is the case you do not need to take any action, you are automatically a participant.

ment pension and partner’s pension, if desired.

Your Shell net pension scheme from SNPS Shell Nederland Pensioenfonds Stichting was

net (not subject to tax). Your children will receive a net

established in 2013. Participants in an SNPS

orphan’s pension until their 18th birthday. Children who

pension scheme can log into their personal

are studying are entitled to an orphan’s pension while

area at mijnnettosnps.nl to, for instance, keep

they are studying (up to September after their 24th birthday).

their details up to date, follow developments in their accrued capital and indicate their in-

Disability

vestment preferences. In the Shell net pension

In the event of (partial) disability your net contribution pay-

scheme you accrue capital for your retirement

ments are continued, during which you are exempt from

pension. Furthermore, your dependants and

making contributions. Therefore SNPS continues to pay

the consequences of possible incapacity for

your pension contributions in the event of (partial) disability.

work are well covered. Who pays the contributions? Retirement pension

Net pension scheme contributions comprise an employer and

You accrue pension capital for a retirement pension. During

employee component. The maximum permitted contribution

the accrual period the sum of your pension capital is not

is age-related and determined by law. Contributions increase

subject to income tax in box 3 (capital gains tax), so you

as retirement draws nearer, this takes place in steps of five

don’t need to declare it when submitting your income tax

years. You contribute 2% from the portion of your salary

return. From your retirement date you will receive net pension

that exceeds the fiscal limit, regardless of your age. The

benefit payments (not subject to tax) from the pension insur-

rest of the permitted contributions are being paid for by

ance company of your choice. You will receive retirement

Shell. You receive a gross allowance for this on your salary

pension as long as you live.

above the fiscal limit. After the deduction of income tax the entire net contribution is being invested in the pension

Surviving dependant’s pension In the event of death in service your partner and/or children will receive a surviving dependant’s pension. Your partner will receive this partner’s pension for life and it will be paid

scheme as a net amount.

Costs

Pension choices

SNPS is non-profit making. The Shell net pension scheme

Your SNPS net pension scheme has many possibilities and

makes optimum use of the possibilities provided by the tax

you are fully in control. However, some personal events may

legislation. Your entire contribution goes towards your pension,

affect your pension. To find out what possibilities your net

without any deduction of operating costs or profit margins.

pension scheme offers and what kind of impact events can

You only pay the investment costs incurred in the investment

have, please visit mijnnettosnps.nl or contact the pension

of pension capital. These costs are deducted from the return

service desk.

on investment. SNPS is able to keep these costs as low as possible by making collective investments. For more infor-

Life cycle profiles

mation about costs visit mijnnettosnps.nl.

Contributions paid into the pension scheme are invested in a mix that includes equities and bonds. This investment mix

Risk contributions

is called a Life cycle profile and is geared based on age. At

The necessary risk contributions to insure against disability

a younger age there is relatively more investment in equities

(continued monthly net pension accrual if you become fully

and more in bonds at a later age. In this way, fluctuations

and permanently disabled) and death in service (partner’s

in the projected income for later due to increases or decreases

pension and orphan’s pension), are abstracted from the

in interest are reduced as you get older and therefore closer

contribution. Collectivity keeps these risk contributions low

to your retirement date.

for SNPS. SNPS has three types of Life cycle profiles: Offensive, Neutral Insight into pension capital

and Defensive. By default, your contributions are being

To gain an insight into your accrued pension capital and

invested based on the neutral Life cycle profile at SNPS.

expected pension income visit your personal area of the

You have the option to align your investments with your risk

participants’ portal mijnnettosnps.nl where you can see

profile or consciously deviate from this. You can find more

how your pension capital is growing on a monthly basis.

information about capital accrual within the Life cycle profiles

Furthermore, once a year you will receive a Uniform Pension

and the underlying Life cycle portfolios at mijnnettosnps.nl.

Statement regarding the net pension scheme. It shows the sum you have accrued for your net pension. You can also find this statement at mijnnettosnps.nl. Retirement

Your net pension, no defined final sum

On your retirement date you use your accrued pension

The sum of accrued pension capital and the pension benefit that you can

capital to purchase a retirement pension from the insurer of

purchase with it depends on several factors. The main risks that play a role are

your choice. This retirement pension is paid out net of tax

the following. Contributions are being invested so that they achieve a good

on a monthly basis; it is not subject to further taxation. You

yield. We refer to uncertainty about expected yields as investment risk. You are

may also decide to purchase a partner’s pension. Naturally

also dependant on the market rate of interest at the time that you purchase your

this reduces your retirement pension. This partner’s pension

pension: the interest-rate risk. Furthermore, the tariffs that pension insurance

is also paid out net of tax.

companies use can change over the course of time. Because of life expectancy increasing more than expected, for example. We call this the longevity risk.

You may retire between the ages of 55 and 67

Retirement age The target retirement age is 67. You may retire between

For more information

the ages of 55 and 67. With your manager’s consent you

If you have questions about the SNPS net pension scheme

may also choose to continue working and defer your pension

after reading this brochure you will find key information and

(up to a maximum age of 70). Three months before your

answers to Frequently Asked Questions at snps.nl.

retirement date you will receive a letter from SNPS explaining the pension commencement procedure. This will be accom-

We can be reached by e-mail: [email protected]

panied by a projection of how much pension capital will

and also by telephone on weekdays from 8:30 to 17:30

be available to purchase your pension at your retirement

on (070) 3199 388.

date. From April 2015 our new contact details will be: e-mail [email protected] and telephone 013 462 35 92.

What you need to do Participation

from immediate participation in the net pension scheme

Unlike your regular pension scheme up to the fiscal limit,

means that you cannot join for a one year period. Also,

participation in a net pension scheme is not mandatory.

if you stop participating and decide to participate in the

However, Shell assumes that you will want to participate

scheme again, the earliest that you can do so is one year

in the Shell net pension scheme for salary that exceeds the

after you stopped. Bear in mind that joining later or re-join-

fiscal limit. If this is the case you do not need to take any

ing may be subject to a medical examination.

action, you are automatically a participant. Participants can cancel at one month’s notice. In that case, the contri-

Important

butions already paid in will remain earmarked for the net

Are you cohabiting?

pension.

If you, as participant in the net pensionscheme, would die before your retirement date your partner will be eligible for

Opting out

a surviving dependant’s pension under certain conditions.

If you do not want to participate in the Shell net pension

If you are married the partner’s pension is automatically

scheme from the outset you can fill in a form. You can find

included in the insurance, but if you are cohabiting you

this form on the SNPS website. To download the form, you

must enrol your partner with SNPS for the net pension

have to be logged in on the Shell network. If you don’t have

scheme yourself.

access to the Shell network, you can request the form with HR services. In that case Shell pays the gross allowance

Are you working abroad?

to you, minus tax, with your salary each month. Then you

If you are working or living abroad, SNPS will not usually be informed about

will not accrue pension on the portion of your salary that

changes in your personal situation automatically. Therefore it is important that

exceeds the fiscal limit and you will not accrue a surviving

you inform SNPS of changes yourself. Also, as an expat you don’t pay Dutch

dependant’s pension on that portion of your salary. Further-

tax on your gross pension contributions. A hypothetical 52% tax is withheld on

more, pension capital will not continue to accrue above

gross contributions made by Shell to ensure that employees abroad have the

the fiscal limit if you would become fully and permanently

same net outcome as employees in the Netherlands. Therefore you receive the

disabled.

same amount of net contributions abroad as you would if you worked in the Netherlands. It is not possible to pay contributions into the net pension scheme

Participate later or re-joining?

prior to the deduction of the hypothetical taxation, regardless of whether a fiscal

You may also decide to participate when your pensionable

treaty applies.

salary is higher than the fiscal limit. Or later. Refraining

Shell net pensionscheme Participating in the Shell net pensionscheme

Considerations to waive participation in the

has the following advantages:

Shell net pensionscheme:

■ Accruing

■ You

capital in the Shell net pension scheme is

more advantageous than doing it yourself: a. S  NPS invests collectively and can therefore keep investment costs considerably lower than they would be if you if you were to invest by yourself. b. S  NPS is non-profit making and does not deduct operating costs. c. T ax exemption: your accrued net pension capital is not subject to income tax in box 3. ■ Dependants

receive a good surviving dependant’s

pension, also on the portion of pensionable salary above the fiscal limit. ■ You

continue to accrue pension capital on the portion

of salary above the fiscal limit, even if you are unable to work due to full and permanent disability. ■ Immediate

participation, no medical examination

necessary. ■ You

can cancel with one month’s notice.

■ SNPS

has a special helpdesk for the Shell net pension

scheme. This means that you can rest assured that any questions you may have will be addressed personally and professionally.

The Board has outsourced the administration and asset management of the pension scheme to Syntrus Achmea. However, the Board of SNPS remains ultimately responsible for the diligent and timely administration of the pension scheme. This brochure is a simplified explanation of the net pension scheme at SNPS. No rights may be derived from this brochure. The Pension Regulations contain the official legal wording of the net pension scheme and this prevails. The Pension Regulations can be downloaded at snps.nl. The companies in which Royal Dutch Shell plc has direct or indirect participating interests are separate legal entities with their own identity. In this brochure, the collective term ‘Shell’ is used to indicate the various Shell employers and joint ventures affiliated with Shell Nederland Pensioenfonds Stichting. March 2016

mijnnettosnps.nl

have other sources of income. You think it’s not

necessary to build a net pension, besides your gross pension. ■ Your

partner earns sufficiently and you don’t need

insurance for a partner’s pension. Maybe you don’t even have a partner. ■ Your

salary is close to the fiscal limit and you don’t

expect a significant salary increase. ■ If

you don’t deposit the net pension contribution in

your pension, but have it paid with your salary – you are free to use that money in any way.