sabic / spf pension · pdf fileintroduction a new pensioenfonds sabic (spf) pension scheme is...

New SABIC / SPF Pension Scheme

September 2011 edition

Contents

Introduction 3

1. General 41.1 Why do we need a new scheme? 41.2 Collective Defined Contribution scheme 41.3 The changes in brief 4

• From final salary to average salary 4 • Higher annual accrual 4 • From 65 to 66 4

1.4 There are still risks 5

2. Consequencesofthenewschemeforactivemembers(SABICemployees) 6

2.1 Average salary scheme 6 • Average salary - how does it work? 6

2.2 Annual pension accrual 62.3 So what does that mean? 8

• Final salary scheme 8 • Average salary scheme 8 • Examples of final salary versus average salary 9

2.4 Change in (normal) retirement age from 65 to 66 10

3. Consequencesofthenewschemeforactivemembers(employees)andinactivemembers(includingpensionersanddeferredpensioners) 12

3.1 Supplements (indexation) 12

4. Therearestillrisks 134.1 No supplement, or only a partial supplement 134.2 Reduced pension 134.3 Reduced pension accrual 13

5. Somethingshaven’tchanged 145.1 Partner’s pension / orphans’ pension 145.2 Disability pension 145.3 Voluntary Pension Saving (VPS) 145.4 Early Retirement Saving Scheme (PPS) 145.5 Pension contribution 14

6. 2011and2012UPS 15

2

Introduction

A new Pensioenfonds SABIC (SPF) pension scheme is now in force for the period 1 January 2011 - 1 January 2016.

The new scheme is a result of the agreements reached between SABIC and the unions (the social partners). These agreements, which are laid down in a pension agreement, are renewed for the next five years. SPF has ‘translated’ the new pension agreement, which the social partners entered into on 6 April 2011, into a new set of pension regulations. This brochure outlines the changes in the regulations as a result of the new pension agreement.

The changes agreed by the social partners mainly affect the accrual of pension by SABIC employees and, to a lesser extent, the pensions of inactive members, including pensioners and deferred pensioners.

This brochure, issued jointly by SABIC and SPF, begins with a general introduction and then looks at the consequences for active members of the fund (SABIC employees). A separate section then examines the consequences for both active and inactive members. Finally, the brochure explains the elements of the SABIC / SPF pension scheme that have not changed.

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4 New pension scheme SABIC / SPF

1.1Whydoweneedanewscheme?

The new scheme must of course comply with current legislation and regulations. This means that the pension contribution paid by the employer and employee together (currently 25.5% of the pensionable salary) must always cover the costs of pension accrual. It also forms the pension fund’s financial safety net for difficult times. The administration costs also have to be paid from it.

When making the pension agreements the social partners had to consider external (national) developments, and to take account of the following: • Life expectancy in the Netherlands has increased more

sharply over the past few years than had been allowed for until recently. This means a higher contribution is needed to allow pensions to be paid for longer in the future.

• The low market interest has increased the fund’s liabilities, so its assets also need to increase to allow it to pay these pensions in the future.

• Since the financial crisis of 2008/2009 the value of investments has fluctuated widely, showing the high risks to which pension funds are exposed. To compensate for this, funds have to have a larger safety net.

These factors have forced the pension scheme to make economies. If the scheme didn’t change, the pension contributions would have to rise to more than 30% of pensionable salary to cover the cost of pensions. Over the past few years it hasn’t always been possible to grant (full) supplements (indexation). The new scheme therefore has to ensure that pensions remain affordable and tenable and that there is more likelihood of supplements being granted. Over 90% of Dutch employees are members of an average salary scheme. The new scheme brings the fund into line with this.

1.2CollectiveDefinedContributionschemeMoney is needed to pay the pensions and that is why the pension fund receives contributions from SABIC and its employees. Together they pay a pension contribution of 25.5% of the pensionable salary. The social partners agreed in 2006 that, once SABIC has paid this contribution, it can’t be called on to make up any deficit in the pension fund. So SABIC pays the defined contribution, irrespective of whether the funds finances are good or bad. The technical term for this is a Collective Defined Contribution (CDC) scheme. The causes of deficits include low investment results, low interest or an unexpectedly sharp rise in life expectancy. SPF members are therefore exposed to the possible consequences of these risks, which are discussed in more detail later. On the other side of the coin, SABIC can’t claim any share in the pension fund’s assets and/or a reduction in its contribution

when good investment results, for example, have placed the fund in a good financial position.

When establishing the amount of the contribution, the social partners made no allowance for supplements. Supplements must be paid entirely from the returns SPF makes on investing the pension capital, so if the return isn’t high enough, there are no supplements.

1.3ThechangesinbriefThe changes in the pension scheme are summarized below and examined in more detail later on in this brochure.

FromfinalsalarytoaveragesalaryIn a final salary scheme, your pension is based on the final salary you earn.

In an average salary scheme the pension is based on the average salary earned during your career. Every year pension is accrued on the basis of the (pensionable) salary you earned on 1 January that year, so the pension you accrue is a ‘weighted average’ over your working life.

HigherannualaccrualUnder the old scheme, pension was accrued at 2.0% a year. This has been increased to 2.1%.

From65to66From 1 January 2012 pension accrual will be calculated on the basis of a (normal) retirement age of 66. This is in line with the (expected) increase in the statutory retirement age. This doesn’t mean that the pensionable age for all pension rights will increase to 66. The pension rights accrued before 2012 will still be based on a retirement age of 65.

1. General

DeferredpensionersIf you left SABIC before your (early) retirement date, but left your pension with SPF, you are a deferred pensioner.

1.4TherearestillrisksThe pension scheme must be financially viable and the funding level plays an important part in this. This is the relationship between the fund’s capital and its liabilities (all pensions to be paid in the future). If the funding level falls too low, the fund may be unable to pay a supplement. In extreme situations the accrued rights and pensions in payment may have to be reduced. Active members (SABIC employees) also run an additional risk. If the pension contribution of 25.5% appears to be too low to sustain an annual pension accrual of 2.1% of pensionable earnings (your pensionable salary minus the franchise) the accrual can be reduced. The risks are discussed in more detail later in this brochure.

Questions?If you have any questions about your pension, visit the website (www.SPF-pensioenen.nl) or contact our Pension Desk: tel.: 045-5788100, e-mail: [email protected]

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The new pension agreements between the social partners mainly affect pension fund members who are still accruing pension. This is a result of the move from a final salary scheme to an average salary scheme, the increase in the percentage of pension accrual and the change to a normal retirement age of 66 from 1 January 2012. There are also changes to the conditional pension (the deferred pension rights) which affect members still accruing pension. All of these issues are discussed below.

2.1Averagesalaryscheme

Averagesalary-howdoesitwork?In an average salary scheme you accrue pension every year on the income you earned on 1 January that year. This means that the pension you accrue during your career with an employer isn’t calculated on the basis of the final salary you earned, as in a final salary scheme, but as a total of the pension accrued in the individual member years, in other words on the basis of the average salary you earned.

2.2AnnualpensionaccrualIn the SPF average salary scheme the pension accrued in a year is 2.1% of pensionable earnings. This is a higher percentage than the 2% in the final salary scheme that applied up to the end of 2010.

As your income increases slightly every year, the pension accrued in that year also increases.

Another difference between a final salary scheme and an average salary scheme is that the unconditional backservice (increase) in the final salary scheme is no longer paid. In the old scheme, an individual pay rise (for example a scale step or a promotion) always resulted in an increase in pension entitlements from the beginning of your career.

The end of unconditional backservice is counterbalanced by an increase in pension accrual from 2.0% to 2.1%, which applies only from 2011 onwards. If you no longer receive individual pay increases (scale step/promotion) this increase in the accrual percentage is the only difference between the final salary and the average salary schemes. This works in your favor.

2. Consequences of the new scheme for active members (SABIC employees)

In addition to the unconditional backservice (on individual scale steps or promotions) the final salary scheme also granted conditional backservice on general pay increases under the SABIC collective labor agreement. SPF’s financial situation has not been good enough to pay full backservice in the final salary scheme over the past few years.


FranchiseYou don’t accrue pension on your full salary. The pension you accrue takes account of the fact that you receive a state pension from the Dutch government. Pension isn’t accrued on your full pensionable salary, as the state pension already provides part of your pension. So the salary on which you accrue pension is reduced by a certain amount, the franchise, which is related to the amount of the state benefit. The amount of the franchise is set every year. On 1 January 2011 the franchise was set at €12,898, so this amount is deducted from the pensionable salary. A higher franchise (€18,369) applies for employees born before 1950.

PensionablesalaryThe pensionable salary is the gross salary, or the salary elements that count towards the accrual of pension. This includes fixed pay and fixed supplements, for example. Incidental payments, such as bonuses or profit sharing, are not part of the pensionable salary.

OldpensionentitlementsWhen we move over from the final salary scheme to the average salary scheme, you’ll retain the pension entitlements you’ve accrued in the past (before 2011).

TextofthenewregulationsYou can find the full text of the new SPF regulations on the website www.SPF-pensioenen.nl (Go to: Employee >> About SPF >> Regulations).

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2.3Sowhatdoesthatmean?The graphs below illustrate the characteristic difference between the fi nal salary and average salary schemes.The graphs don’t take account of collective labor agreement increases, but show the effect of individual pay increases (for example scale step or promotion) both in the fi nal salary and average salary situations.

FinalsalaryschemeIn the fi nal salary scheme all pensions accrued in past years are increased to the level of pension accrual in the fi nal year (backservice). The left-hand graph shows the effect of individual pay increases and the right-hand graph shows the situation when there are no (longer any) individual pay increases. In the left-hand graph the whole of the light green area represents backservice. If there are no individual pay increases (as in the right-hand graph) there is no backservice on these increases either.

AveragesalaryschemeIn the average salary scheme the pensions accrued in previous years are not increased to the level of pension accrual in the fi nal year. The left-hand graph shows the effect of individual pay increases and the right-hand graph shows the situation if there are no individual pay increases.

If there are individual pay increases the average salary scheme is expected to deliver less pension than the old fi nal salary scheme. If there are no, or hardly any, individual pay increases (as in the right-hand graph) the outcome of the average salary scheme is likely to be better, as pension is accrued at at the higher rate of 2.1%.

The SPF average salary scheme aims to increase the total pension accrual of employees by the same percentage as pay under the collective labor agreement. If pay under the collective labor agreement increases by 2%, the fund tries to index pensions by 2% as well, but these supplements are conditional. To simplify matters, they haven’t been taken into account in the graphs below.

Year 1 Year 2 Year 3 Year 4 Year 5AnnualPension accrualAnnualPension accrual

Annual backservice(supplement)Annual backservice

Employee X(individual pay increases)

Year 1 Year 2 Year 3 Year 4 Year 5AnnualPension accrualAnnualPension accrual

Increase by pension accrualof 2.1% (previously 2%)of 2.1% (previously 2%)

Employee X(individual pay increases)

Year 1 Year 2 Year 3 Year 4 Year 5

Annual Pension accrual

Employee Y(no individual pay increases)



AnnualPension accrual

Increase by pension accrualof 2.1% (previously 2%)



AnnualPension accrualAnnualPension accrual

Increase by pension accrualof 2.1% (previously 2%)Increase by pension accrualof 2.1% (previously 2%)


Annual Pension accrualAnnual Pension accrual



€ 0

€ 500

€1,000

€1,500

€2,000

€2,500

Up to and incl.2011

Up to and incl.2012

Up to and incl.2013

Up to and incl.2014

Up to and incl.2015

359

342

771

784

1,203

1,236

1,668

1,768

2,163

2,360

Average Salary

Final Salary

€ 0

€ 10,000

€ 20,000

€ 30,000

25,147

24,529

25,909

25,329

24,529

26,129

26,929

26,671

Up to and incl. 2010





27,730

27,433

Average Salary

Final Salary

ExamplesoffinalsalaryversusaveragesalaryWe’ll show you how pension is accrued on the basis of two fictional examples. The examples show two situations which could be described as the extremes.

Example 1Tara is 27. She joined the company on 1 January 2011, earns a gross salary of €30,000 a year and is at the beginning of her career. We’ll assume that Tara’s salary increases by €2,500 in 2012 as a result of a promotion. In 2013 it increases by €1,000 as a result of a scale step. Tara’s salary increases by €1,500 in 2014 as a result of a promotion. And in 2015 her salary increases with €1,500 as a result of a scale step. This example doesn’t take account of the annual increase under the collective labor agreement. The franchise is €12,898 and the accrual percentage is 2% in the final salary scheme and 2.1% in the average salary scheme.

The example shows that pension accrual up to the end of 2011 is somewhat higher in the average salary scheme than in the final salary scheme. This is the effect of the increase in the accrual percentage from 2% to 2.1%. In the pension situation up to the end of 2012 and up to the end of 2014 the pension accrued in the average salary scheme is lower than it would have been in the final salary scheme. In the situation up to the end of 2012 this is a result of the promotion and in the situation up to the end of 2014 it’s a result of the scale step. In the final salary scheme backservice would be granted on the individual pay increases resulting from the promotion and the scale step. In the average salary scheme this isn’t the case. As a person joined the company for a longer period and makes career steps, the difference with the final salary scheme is higher.

Example 2 Jules is 55. He now (in 2011) earns a gross salary of €51,000 a year. This example doesn’t take account of the annual collective labor agreement increase. There are no individual pay increases for Jules because he has reached the top of his salary scale.

Up to 2011 Jules accrued an annual pension of €24,529 over 32 years’ service. The franchise is €12,898 and the accrual percentage is 2% in the final salary scheme and 2.1% in the average salary scheme.

This example shows that the pension accrual in the average salary scheme is slightly higher than in the final salary scheme. This is the effect of the increase in the accrual percentage from 2% to 2.1%.

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2.4(Normal)retirementageincreasedfrom65to66

The pension entitlements you accrue before 2012 will start at the retirement age of 65. The pension entitlements you accrue from 2012 onwards are based on a (normal) retirement age of 66. This is in line with the (expected) increase in the statutory retirement age. If no national agreement is reached on changing the statutory retirement age from 65 to 66, the agreements on this between the social partners can be amended.

Does this mean that everyone who retires after 2011 will have to work until the age of 66?No, even in the new pension scheme there are options for retiring earlier.

What are the consequences of the increase in the (normal) retirement age to 66?For members who have worked at SABIC for a long time, the effect isn’t as great as for members who joined the company more recently, as members with a long period of service accrued a lot of pension entitlements before 2012 and these are based on a retirement age of 65.

The table below gives an overall view of the effect of raising the retirement age to 66. It’s based on the situation of someone who works until the age of 65 and whose full pension starts on their 65th birthday. Depending on your own situation, you can use this to estimate the consequences for yourself.

N.B.: although the new pension agreements came into effect on 1 January 2011, the new (normal) retirement age doesn’t take effect until 1 January 2012. So pension accrual in 2011 is still based on a retirement age of 65.

If your old age pension is accrued as follows at your retirement date: The percentage by which your pension in the new

pension scheme is lower,if you still retire at 65 is:before 2012 from 2012

100% 0% 0%

75% 25% 1.82%

50% 50% 3.65%

25% 75% 5.47%

0% 100% 7.3%

Example 3An example of an employee who accrued 50% before and 50% after 1 January 2012:

Let’s assume that someone has accrued €15,000 in pension before 2012 and is going to accrue another €15,000 from 2012 until his/her 65th birthday. When the new scheme starts, this means that although he/she accrues €15,000 from 2012, he/she will only receive €13,905 of this if he/she retires at 65. The amount is lower because it has to be paid out a year earlier (from the age of 65 instead of 66). The reduction is calculated on the basis of a fixed (actuarial) factor of 7.3% (for 2011). In this example: 7.3% of €15,000 = €1,095 (€15,000 - €1,095 = €13,905). This means that the (gross annual) pension from the age of 65 will be €28,905 (€15,000 + €13,905). In other words, it will be 3.65% (see table) of €30,000 = €1,095 lower. To receive the same pension (€30,000) this employee will have to work for about another 5 months until he/she is 65.

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HowdoesthisaffectpeoplewhohavealreadyleftSABIC?The change in the (normal) retirement age to 66 and the higher annual accrual of 2.1% don’t affect people who no longer accrue pension with SPF, in other words the pensioners, deferred pensioners and those who have taken early retirement.

Disabled employees who no longer work for SABIC, but are still accruing pension, are still covered by the old scheme. The average salary scheme and the (normal) retirement age of 66 doesn’t apply to them, although it does apply to those disabled after 2010.

Some former active members for whom employment-related agreements were made (directly linked to their employment at SABIC) are still accruing pension. The new scheme applies to this group. As the period of accrual under the new scheme is limited, its effect will also be limited.

If you have any questions about these and other specific pension situations, please contact our Pension Desk: tel.: 045-5788100, e-mail: [email protected]

Conditionalpension(deferredrights)In 2005 agreements were made which mean that employees born after 1949 and working for the company on 31 December 2005 are eligible for additional old age pension and partner’s pension entitlements under certain conditions. To be able to pay these additional entitlements, any fiscal scope not yet fully utilized was used for the individual calculations produced in 2005. If this scope was available, additional pension entitlements, called conditional pension (or deferred rights), were

granted to these employees. This pension is paid in up to 15 annual installments, which must all have been paid by the time the employee reaches the age of 60. For employees who will reach the age of 60 within 15 years (from 2006), the total amount is therefore divided into fewer installments. In the period 2006 to the end of 2010 the conditional pension was granted annually to those who were still members of the SPF pension scheme at that time. More informa-tion about the conditional pension is given in your personal Uniform Pension Statement (UPS).

Under the new agreements made by the social partners, the conditional pension (deferred rights) that would have been granted annually in the period 2011 up to the end of 2015 were paid as a lump sum on 1 January 2011.

The employer made a one-off contribution of €6.5 million to cover this. As this amount would otherwise be paid from the normal contribution of 25.5%, this has created more financial scope for SPF (and greater chances of indexation).

3. Consequences of the new scheme for active members (employees) and inactive members (including pensioners and deferred pensioners)

The new agreements between the social partners don’t only affect the active members of the pension fund. The agreements on supplements affect both active members and inactive members.

3.1Supplements(indexation)SPF tries to ensure that the pensions of pensioners and deferred pensioners grow annually (as a maximum) in line with price increases. When determining the amount of price increases, the Board of SPF uses the price index figure issued by Netherlands Statistics (CBS), known as the ‘CPI, all households – derived’.

SPF tries to ensure that the pension accrued by active employees of SABIC grows (as a maximum) in line with the SABIC annual collective labor agreement pay increase (the general pay increase).

That’s the aim of the pension fund. This ensures that the pension retains its value, but there isn’t any guarantee that SPF will be able to increase pension accrual and pensions every year. There is no reserve for these supplements and no contribution is paid by the employer and employee. The money for supplements has to come from the returns on the fund’s assets.

The new pension agreement between the social partners includes agreements on supplements. The pension fund can grant supplements in the future within the framework of these agreements.

These agreements on supplements are broadly as follows:• A rule of thumb has been developed for decisions about

supplements. Full supplements are granted only in years when the funding level is greater than or equal to 120%. If the funding level is between 110% and 120% the Board can decide to grant half of the supplement. If the funding level is lower than 110% no supplement is granted. If a (partial) supplement is granted, it must not reduce the funding level to less than 110%. The Board can choose not to follow these rules if there are good reasons for doing so.

• If there is a collective labor agreement increase or price rise of more than 5% the Board of SPF may decide to limit the supplements to 5%.

• A decision on granting supplements to pensioners no longer depends on the outcome of the collective labor agreement discussions. The SABIC collective labor agreement increases no longer form the ceiling for the supplement to pensioners. In the old scheme pensioners had to wait until the collective labor agreements had been made for their supplements, which couldn’t exceed the pay increase awarded under the collective labor agreement.

• If the financial assets of the fund recover sufficiently, the Board can also decide to grant employees and pensioners supplements not granted in the past. The pension fund still has to draw up rules for this.


The pension scheme has to be financially viable. The funding level plays an important part in this. This is the relationship between the fund’s capital and its liabilities. If the funding level falls too low, it may not be possible to grant supplements. In extreme situations the accrued entitlements and pensions in payment may even be reduced. The active members (SABIC employees) also run an additional risk. If the pension contribution of 25.5% turns out to be too low to sustain annual pension accrual of 2.1% of pensionable earnings, the accrual may be reduced. So both the active and inactive members of the fund still run risks under the new scheme. These risks are:

4.1NosupplementsoronlypartialsupplementsThe financial situation of SPF must be good enough for supplements to be granted. This is determined by the fund’s investment results. These are assessed every year by the Board of SPF. If a (partial) supplement is granted, it must not reduce the funding level to 110% or less. If this would be the case, some or all of the supplements for active members and pensioners will not be granted. If supplements aren’t granted for one or more years, these missed supplements can still be made up when SPF is in a better position. Supplements missed for a period of up to five years can be made up in this way.

4.2ReductionofpensionIf there is a structural deficit in the fund and the fund can’t meet the recovery plan, the Board of SPF can decide to reduce the accrued pension entitlements of active members and the pensions in payment of pensioners.

4.3ReductionofpensionaccrualThe pension contribution of 25.5% is based on reliable assumptions and the chances of it being too low are very small. However, if interest rates continue to be very low, the current pension scheme may become so expensive that the contribution the pension fund receives from the employer and employees will no longer be sufficient to administer the scheme unchanged. The contributions will no longer cover the costs of pension accrual. In that case the future pension accrual of the active members (SABIC employees) will have to be reduced.

NewsletterIf you want to keep up with the latest developments in SPF pensions, sign up to the (digital) quarterly pensions newsletter. You can sign up by clicking on “Employee”, “(Pre-)Pensioner” or “Former Employee” from the homepage of the SPF website.

4. There are still risks

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5. Not everything has changed

A number of elements of the new pension scheme have been transferred unchanged from the old scheme. These unchanged elements are outlined below.

5.1Partner’spension/orphans’pensionAs a member of SPF you accrue both old age pension and partner’s pension. The partner’s pension amounts to 70% of the old age pension. The following are eligible to receive partner’s pension:

• Your spouse• Your civil partner• The person named as your partner (not a blood relation or

direct relation) in a notarial partnership and registered with SPF.

If you die before your retirement date, and you are still employed by SABIC, your surviving partner will receive a pension of 70% of the old age pension you would have accrued by your statutory retirement age. In addition to this, he/she will also receive a temporary partner’s pension and a supplementary partner’s pension until his/her statutory retirement age.

When you die, any children you have who are minors or still in education will each receive an orphans’ pension of 14% of the old age pension. For a full orphan (both parents deceased) this percentage is doubled to 28%. If you die before your retirement date, and you are still employed by SABIC, the orphans’ pension is calculated on the basis of the old age pension you would have accrued by your statutory retirement age.

5.2DisabilitypensionIf you are fully disabled, you may be entitled to an SPF disability pension. This is a benefit paid on top of your state disability benefit. If you lose your job as a result of your disability you may continue to accrue pension with SPF under certain circumstances.

5.3VoluntaryPensionSaving(VPS)With SPF you can save additional pension on top of your ‘normal’ pension. This is called Voluntary Pension Saving (VPS) and is advantageous if you want to accrue a higher pension for personal reasons.

You can find out how it works and who is and isn’t eligible for Voluntary Pension Saving in the brochure ‘Voluntary Pension Saving’ on the SPF website (www.SPF-pensioenen.nl). When establishing the return, an allowance of 0.10% is made to cover investment costs. No costs are deducted from the sums paid in to VPS.

Saving with VPS isn’t without risk. If the return on SPF’s investments in a particular year is negative, that negative return is deducted from the balance already saved.

5.4EarlyRetirementSavingScheme(PPS)Members born before 1950 have a PPS balance and can still save with PPS. Members born after 1949 may have PPS capital, but can’t save any more. If the return on SPF’s investments is negative, the PPS capital or PPS balance is not reduced. The negative return will be offset against positive returns in future years.

5.5PensioncontributionSABIC pays a pension contribution of 25.5% to SPF. SABIC ‘recovers’ part of this contribution from its employees. If you were born in or after 1950 your own contribution is 2.5% of your pensionable salary up to €61,500 (previously €56,374) and 6.5% of your pensionable salary above this amount. If you were born before 1950 you pay a pension contribution of 0.5% of your pensionable salary up to €61,500 (previously €56,374) and 4.5% of your pensionable salary above this amount.


6. The 2011 and 2012 UPS

The new scheme affects the amounts shown in the annual Uniform Pension Statement (UPS). How does the 2011 UPS you’ve already received relate to the 2012 UPS?

The 2011 UPS (reference date 31/12/2010) includes • the achievable pension (including any conditional pension

accrued up to the end of 2010) • accrued pension (based on the pensionable salary on

31/12/2010 and the number of accrued months up to the end of 2010, including any conditional pension accrued up to the end of 2010)

• conditional pension (deferred rights granted partially and in full)

The 2012 UPS (position as at 31/12/2011) also shows the achievable, the accrued, and the conditional pension. However, the amounts in the 2012 UPS are calculated on the basis of the new scheme. The consequences of this are outlined in the example below. This example does not include (catch-up) supplements.

Position Thismeans:Exampleofthechangeintheaccruedpension

2011UPSPension entitlements based on the salary as at 31/12/2010 and accrual months up to the end of 2010

The final position in the final salary scheme is also the starting position in the average salary scheme

E 11,200

2012UPS

The consequences below are shown in the 2012 UPS:

The annual accrual in 2011 is added on the basis of the average salary scheme and therefore on the basis of 2.1% (previously 2%) of the pensionable salary as at 01/01/2011

This increases the accrued pension + E 700

For employees in company service on 31 December 2005, the conditional pension for 2011 up to the end of 2015 was granted in a single payment (in the example €500 instead of 5 x €100)

This increases the conditional pension granted and therefore the accrued pension

+ E 500

The new final position for the accrued pension is therefore E 12,400

The achievable pension for the period from 2011 to the retirement date is calculated on the basis of the accrual percentage of 2.1%.

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postal address

SPF (DPS)Postbus 6500 6401 JH Heerlen

office address

SPF (DPS)Het Overloon 1 6411 TE Heerlen

telephone pensiondesk

045-5788100

e-mail

[email protected]

internet

www.spf-pensioenen.nl

DisclaimerThe information provided in this brochure is general, purely indicative and subject to change. The details given are intended only to provide members, pensioners and other persons who can derive rights from the valid pension scheme of Stichting Pensioenfonds SABIC (“the Pension Fund”) with general information. The information in this brochure has been formulated as carefully as possible, but is used entirely at the user’s risk. Neither the administrator (DSM Pension Services B.V.), the pension fund nor the employers accept any liability under the current pension scheme for loss or damage arising from inaccuracies or omissions in the information, or loss or damage arising in connection with the use of, reliance on, or dissemination of the information. Rights can be derived only from the pension regulations applying to the member.

sabic / spf pension · pdf fileintroduction a new pensioenfonds sabic (spf) pension scheme is...

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