Collective Variable Pension
What is Collective Variable Pension?
You will preliminary choose a fixed or variable pension at age 58.
In addition, we also adjust benefits for your partner and children after your death with the results of the CVP. Those results are more than just investments.
On this page, you can read all about your choice and how the CVP works.
Pension: you choose when you turn 58
You will then make a preliminary choice for a variable or fixed pension. Have you chosen a variable pension? Then your pension will be converted to the CVP step by step in 10 years’ time. You are then less dependent on interest rates at any given time. Your pension will be fully converted to CVP at age 68. Would you like to retire early? If so, we will convert all the remaining pension capital. You will make your final choice when you retire.
Do you want to know how converting your capital to the CVP works?
Would you like to know more? Then follow the e-learning about the CVP. Read all the conditions in the regulations (pdf).
Pension for your partner and children: benefits may increase or decrease annually
If you pass away, your survivors will receive a benefit. We will adjust the benefits annually for these pensions according to the CVP. Benefits may rise or fall as a result.
This always applies, even if you have provisionally opted for a fixed pension. That choice is independent of the pensions for your partner or children.
We will continue to invest for you
- In the years when the capital for your pension is converted to the CVP, we will continue to invest for you. The part that is converted to the CVP is invested according to a fixed collective investment mix. It enables the participants to share a number of risks. At the bottom of the page you can read what the CVP results consist of.
- Meanwhile, the remaining capital is still invested according to your risk profile. Are you still working for Shell? You will also keep accruing capital for your pension.
And we will continue to invest your pension even after you retire. We do so entirely through the CVP. The same counts for the pension for your partner and children if you pass away.
We spread the results over 5 years
Your pension will change in tandem with the investment results achieved. Profits or losses in a particular year are spread over five years to avoid major fluctuations in the value of your pension. If investments do well, then you will benefit from this. If investments do not so well, your pension could change too. The value of your pension will therefore vary from year to year. The expectation is that the CVP will be a higher pension in the long term.
These results are included in your pension benefits every year on 1 July. We base this on the results on 31 December. In June, you will receive a letter stating the consequences for your pension.
More explanation on how we process investment results?
Will you opt for a fixed pension? Then your capital will not be converted.
We will continue to invest for you according to the risk profile you have chosen. You will later buy a fixed pension from an external insurer with your accrued capital. You will make your final choice when you retire. You can also change your previous choice when you retire.
Did you initially opt for a variable pension and do you prefer a fixed pension? Then we will convert your purchased pension entitlements in the CVP into capital. You can use it to buy a fixed benefit from an external pension insurer.
Have you opted for a fixed pension but would you like to still participate in the CVP on your retirement date? In that case, we will convert your pension capital into a variable benefit at once. This is why the amount of your pension depends on the interest rate at that time.
The results of the CVP
| The results of the SNPS gross pension scheme and the SNPS net pension scheme | ||
| Year | SNPS gross pension scheme | SNPS net pension scheme |
| 2024 | 5.07% | 4.075% |
| 2023 | 0.515% | 0.93% |
| 2022 | -5.61% | -5.655% |
| 2021 | +5.26% | +5.92% |
| 2020 | +0.96% | +0.32% |
| 2019 | +3.02% | +2.77% |
| 2018 | -2.30% | -2.50% |
Risicoprofiel 6 Accordion
Year full of (geo)political events
US economic growth surprised positively. Sustained growth in the tech sector, high government spending and robust US consumers kept economic growth on track. Economic growth was under pressure in the eurozone. The manufacturing sector in particular is struggling. Also, China continues to suffer economically. The Chinese authorities did announce stimulus measures to pull the economy out of the doldrums. Inflation seems largely under control. The drop in inflation prompted central banks to ease monetary policy. Both the Fed and the ECB cut policy rates. The US policy rate was cut by 100 basis points to the range of 4.25% to 4.5%. In the eurozone, the ECB cut deposit rates in four steps from 4% to 3%. Several (geo)political developments dominated 2024. The government fell in both France and Germany. Donald Trump made an unexpectedly strong comeback in the United States. Not only did he win the presidential election, the Republicans also gained the majority in both the Senate and the House of Representatives. Tensions in the Middle East continued to rise and the Ukraine war continued in full force. The robust US economy, monetary easing and AI developments created a positive environment for risky investments. Trump's election win also paid off positively for equity markets in 2024. The picture in bond markets was mixed. But most asset classes recorded positive total returns.
Positive return in 2024
The CVP portfolio invests in a mix of marketable securities, such as shares, and fixed-income investments. Fixed-income investments are mainly intended to keep the pension benefit - which is also sensitive to interest rate changes - somewhat stable. In particular, the marketable securities should over time ensure that pension benefits increase on average. The CVP portfolio achieved a small positive return of almost 9%. Part of this positive return serves to compensate for the adverse effect that lower interest rates had on pension benefits. Adding all factors together, including the effect of interest rates on pension benefits, the 2024 effect is that pension benefits would increase by 5.07% (CVP Gross) and by 4.075 (CVP Net). This result is spread over 5 years: one-fifth of this positive result thus affects pension benefits for the next 5 years. Results from previous years are also spread over a five-year period. For instance, the result on pension benefits in 2023 was slightly positive, 2022 over 5% negative and 2021 over 5% positive.
What results do you share in the CVP?
the investment results
We invest according to a mix. That is a collection of different types of investments. For example, shares or bonds. Shares often provide more profit, but there is also a higher probability of loss. Bonds usually provide less profit, but more security. In the mix, we follow your risk profile until your retirement. After the retirement date, the same mix applies to all pensioners.
amount of the interest
Low interest rates make pensions more expensive, which means we need more money to pay the same pension amount. So we can then pay lower pension benefits. The reverse is also true: when interest rates are high, we can pay out higher pension benefits.
the mortality outcome
We pay lifelong old age pensions and lifelong partner’s pensions. And survivor’s pensions up to a certain age.
If someone dies earlier than expected, we keep money. Benefits could then be higher. And if someone lives longer than expected, we need more money. Then the benefits may decrease.
The developments of life expectancy.
We look ahead with life expectancy. As indicated above, if someone lives longer than expected, we need more money. Then the benefits may decrease. And vice versa.
Thank you for your feedback!