Fixed pension benefit

Are you participating in the SNPS pension scheme and/or the Shell Net Pension Scheme? In that case, you are opting for a variable or a fixed pension benefit starting on your retirement date. If you opt for a variable pension, you will participate in the Collective Variable Pension (CVP) of SNPS. Are you opting for a fixed benefit? Then you will purchase a benefit on your retirement date.

You will make a provisional choice in the year you turn 58
In the year you turn 58, we will invite you to make a provisional choice for a fixed or a variable pension benefit. Are you opting for a fixed pension? In that case, there will be no change to your retirement date. You will continue accruing pension capital and investing according to your previously chosen Life cycle profile. On your retirement date you will purchase a fixed pension benefit at once.

The amount of fixed pension you receive depends on interest rates, among other factors
With a fixed pension, you purchase a benefit at once on your retirement date. Among other things, you are then dependent on the interest rate at that time. Is it low? You will receive a lower pension. Conversely, if the interest rate is higher, your pension will increase. With the CVP, you are less dependent on interest rates, as your pension is purchased gradually from age 58.

On your retirement date you will make a final choice
Are you still opting for a variable pension benefit? You will then use your accrued pension capital to purchase a pension benefit from an external pension administrator on your retirement date. At that point, the amount you receive each month will be fixed. A fixed benefit gives you certainty about the amount of your pension. If you opt for a fixed benefit, your pension capital will no longer be invested. You will thus not benefit from any positive investment results. Conversely, if the investments decline, you will not suffer any disadvantage.

Would you rather have a variable benefit on your retirement date?
For example, because your circumstances have changed? If so, you can reconsider your provisional choice. A variable benefit will then be purchased from SNPS out of your accrued pension capital.

Have you participated in the CVP but would like to change to a fixed benefit?
If you opted for a variable benefit at age 58, you can still choose a fixed benefit on your retirement date. We will then convert all accrued entitlements into capital. You will use this capital to purchase a fixed pension benefit.

You will buy a fixed benefit yourself
SNPS does not offer a fixed benefit. You must therefore choose a pension administrator that does offer such a benefit. You will have to make some choices. For example, if you wish to have a partner's pension. And whether you want your pension to be indexed on an annual basis. The pension administrator you choose can inform you about the various options.

How to choose a pension administrator?
You can search for pension administrators. For example by searching on internet using words such as: fixed pension benefit, fixed pension or purchasing a pension. Or you can look at an independent site such as moneywise.nl (only in Dutch). Purchasing a pension benefit is an important decision. We therefore think it is wise to request several quotations or to engage a financial advisor. This allows you to see what the options are and compare them.