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Indexation policy

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The main principles of Indexation policy
image indexation policy

Indexation is the periodical adjustment by a certain percentage of pensions that have entered into effect and/or are deferred (non-contributory pension entitlements). This page sets out the main principles of the Pension Fund’s Indexation policy.

 

You can find more details in the brochure 'Indexation of pensions' that can be downloaded under 'brochures'.

 

Unconditional indexation

Indexation is unconditional for certain pension elements. These elements are explicitely defined in the Regulations. They are adjusted automatically on 1st July of each year. Funds are received for this purpose.

 

These elements include:

- compensation for uninsured years accrued before 1st January 2006: this is adjusted in line with the evolution of AOW benefits;

 

- disability pensions in payment: these are recalculated annually on the basis

of the evolution of salary maximums in the Shell in The Netherlands remuneration system;


- partner’s and orphan’s pensions in payment in cases where the retirement date of the deceased participant has not yet been reached: these are adjusted in line with the evolution of salary group 15 in the Shell in The Netherlands remuneration system;

 

- supplementary partner's pension in payment: this is adjusted in line with the evolution of salary group 15 in the Shell in The Netherlands remuneration system.

 

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Conditional indexation

Indexation is conditional for all other pensions in payment and non-contributory pension entitlements.

 

Each year the Board decides whether such an adjustment will be made. It should be noted that the Pension Fund aims to adjust the pension rights and entitlements on 1st July of each year in line with (as a maximum) the rise of the 'derived consumer price index for all households', as determined by Statistics Netherlands (CBS) for the reference period from March of the previous year to March of the current year.

 

No capital 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.

 

Does your pension keep its value?

The adjoining picture, the Indexation label (Indexatielabel or Toeslagenlabel) over the period 2010-2024, is about the increase you can expect to receive, and is an average over fifteen years. The actual increase may differ from year to year.

January 2010

 

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Other factors

The Board may also decide, in view 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. Any decision to grant such a supplement is at the discretion of Board.

Five-yearly evaluation

The execution of the Indexation policy will be evaluated every five years.

 

 

 

 

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