Indexation policy

Note: this policy will apply until Shell implements the new Pensions Act in the Netherlands (which will be by 1 January 2027 at the latest).

Each year pension entitlements of active members grow in line with the increase of the prices
The indexation is based on the increase of the derived price index figure all households as published by the Central Statistics Office. It is calculated as the average of this index over the previous 2 years with a maximum of 5%. We look at the period from November to November for both years. The supplement is funded by the employer with the contribution charged by Shell Pension Fund Foundation. This unconditional supplement is granted on 1st February each year. The supplement applies also to:

• the equalised old-age pension of the former partner with an active participant;
• the partner's pension, orphan's pension and supplementary partner's pension paid out until the retirement date of the deceased (former) participant;
• the base salary for the disability pension (AOP).

The pension entitlements were increased by 5% on 1st February, 2024 (over 2023). The price development based on the increase of the derived price index figure all households over the period November 2022 to November 2023 was 0.2%. The price development based on the increase of the derived price index figure all households over the period November 2021 to November 2022 was 12.1%. Therefore the average price development over the last 2 years is 6.15%.

Increase of pension entitlements of active members over the last 10 years:

* Until 1 January 2015, you accrued a pension in the pension fund based on a final pay scheme. This means that your pension grew in line with the growth of your own salary. From 2015 up to and including 2021 your pension entitlements grew in line with the development of the majority of the salary of Shell Nederland B.V.. Calculations are based on the majority of the 100% scale positions of salary groups 1 through to 15. In 2022 we increased your pension by a fixed percentage of 2%.
** Source: Statistics Netherlands, consumer price index all expenses per calendar year.

If possible, pension rights of former employees and pensioners grow in line with the prices
We look at the increase in the derived price index figure for all expenditures for the months November to November in the previous year according to Statistics Netherlands. This concerns a conditional increase. The Board of the Shell Pension Fund Foundation decides each year whether the pension is increased. An increase is only possible if the financial situation of Shell Pension Fund Foundation allows for this. No reserve was formed for the conditional increase and no contribution is paid. The increase is financed by means of investment returns. It is therefore uncertain whether we will also be able to increase the pensions in the coming years.

The pension entitlements and rights of former employees and pensioners as of 1 February 2024 (for 2023) have been increased by 0.2%. The price development based on the derived price index figure for all expenditures in the period from November 2022 to November 2023 was 0.2%.

Increase of pension rights of former employees and pensioners over the last 10 years:

* In 2014, in addition to the regular increase, half of the 2.2% increase for former employees and pensioners not granted in 2012 was also compensated. In 2018, in addition to the regular indexation, the increase of 1.1% from 2012 that had not yet been granted has been compensated for former employees and pensioners. In 2022 a catch-up indexation of 0.7% was granted over 2021. The indexation of 4.1% that was not granted in February 2023 was belatedly granted in November 2023.
** Source: Statistics Netherlands, consumer price index for all derived expenditure. As of 2016, the reference period is November – November (previously, the reference period was March – March).
*** Source: Statistics Netherlands, consumer price index all expenses per calendar year.