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 Collective Variable Pension (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 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 |
| 2025 | 7.99% | 7.59% |
| 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% |
A year of economic resilience and declining uncertainty
The 2025 investment year contributes to a higher pension benefit. This increase will be phased in gradually over several years.
The global economy remained resilient in 2025, despite concerns about trade tariffs and geopolitical tensions. In the first half of the year, the trade war dominated the news, but after negotiations most measures were scaled back. On balance, geopolitical developments had only a limited impact on the financial markets.
Economic growth remained steady. At the same time, inflation in developed countries fell further, although it remained above central bank targets. Central banks therefore eased monetary policy: the US central bank (the Fed) cut interest rates in three steps, while the European Central Bank (ECB) cut interest rates in four steps.
The CVP portfolios invest in a mix of investments aimed at stable growth
The CVP portfolios invest in return-seeking assets, such as equities and bonds, which carry a higher level of risk. Over time, these return-seeking assets are mainly intended to ensure that the pension benefit increases on average.
In addition, the CVP portfolios invest in fixed-income securities that move in the opposite direction to interest-rate movements. These fixed-income securities are mainly intended to keep the pension benefit, which is also sensitive to changes in interest rates, stable.
Positive return on return-seeking assets
Equity markets performed strongly, driven in part by lower interest rates, strong profit growth and optimism about technological developments. The equity portfolio achieved a clear positive return and performed significantly better than the benchmark. The depreciation of the US dollar had a negative impact on the investments. Because the fund had largely hedged against changes in exchange rates, this impact remained limited. As a result, this hedging contributed positively to the result.
Negative return on fixed-income securities
Results in bond markets were mixed. Short-term investments and mortgages achieved a slightly positive return, while long-term interest-rate investments performed negatively because long-term interest rates rose sharply. These interest-rate investments have been deliberately structured in this way, because changes in interest rates also affect the value of pension liabilities. This means that the investments and pension liabilities move in line with each other as much as possible.
Negative investment return, but a positive final result
On balance, the investment return for 2025 was -3.5%. Investments in equities made a strong positive contribution, while investments that are sensitive to interest-rate developments produced a negative result due to the rise in interest rates. Even so, the final result was positive. This is because the higher interest rates also reduced the value of future pension liabilities. As a result, the financial position of the CVP portfolios improved. Consequently, pension benefits are expected to be increased by approximately 8.0% (gross CVP) and 7.6% (net CVP). This increase will be phased in over five years.
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.
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