Indexation policy

Indexation if you work and accrue pension and for certain benefit groups
If you accrue pension, your accrued pension will be increased on the basis of market-derived price indexation, subject to a maximum of 5% from 2023. This is called indexation and occurs annually on 1 February.

How does indexation based on market-derived price indexation work?
The new indexation method arrives at an indexation rate on the basis of market-derived price indexation, as established by Statistics Netherlands (Centraal Bureau voor de Statistiek), subject to a maximum of 5%. The average of two years is taken when calculating this indexation rate, which means that the high inflation rate of 2022 will be used in calculations for two years. This is expected to have a positive effect on pension indexation in 2023 too. The policy above will apply until Shell implements the new Pensions Act in the Netherlands (which will be by 1 January 2027 at the latest).

The indexation method will apply for:
  • Employees in active employment who joined Shell before 1 July 2013

  • Partner’s pension
    This increase applies until your former partner’s original retirement date.

  • Orphans’ pension

  • Invalidity pension
    The salary on the basis of which we calculate your pension is increased by the indexation rate on an annual basis. We redetermine the WAO/WIA reduction on the basis of data we receive from the Institute for Employee Benefit Schemes (Uitvoeringsinstituut Werknemersverzekeringen (UWV)).

Until the end of 2021, the pension fund automatically allowed your accrued pension to grow each year at the same rate as the development of the majority of Shell Nederland’s salary scales. In 2022, your accrued pension was unconditionally increased by a fixed indexation percentage of 2%.

See your Uniform Pension Overview for information about the indexation rate.

In recent years, your pension has been indexed as follows

 Year  Indexation  Indexation based on
2023              5.0% The market-derived price indexation, subject to a maximum of 5%
 2022  2.0% Unconditional
indexation at 2.0%
 2021  0.0% Development of
the majority of
Shell Nederland’s
salary scales
 2020  2.0% Development of
the majority of
Shell Nederland’s
salary scales (2.0%)
 2019  1.0% Development of
the majority of
Shell Nederland’s
salary scales (1.0%)
 2018  1.0% Development of
the majority of
Shell Nederland’s
salary scales (1.0%)

Indexation if you receive a pension, or no longer work at Shell but do not yet receive pension
Every year, the pension fund tries to increase your pension in line with the rise in consumer prices. This is called indexation.

Indexation is not guaranteed. Indexation is possible only if the pension fund’s financial situation allows for it. The Board decides each year whether it is possible to index pensions.

In recent years, your pension has been indexed as follows

Year Indexation Inflation NL (CPI index)
2023            8.0% 12.1%
 2022  5.7% (including a catch-up indexation of 0.7% over 2021)  5.0%
 2021  0.0%  0.7%
 2020  1.6%  1.6%
 2019  1.6% 1.6%
 2018  2.6% (including a catch-up indexation of 1.1% over 2012)  1.5%

We look at the derived consumer price index figure all households (CPI) - among others - for determining the indexation percentage of your pension,. This figure is published monthly by the Dutch Central Statistics Office.

Read more about indexation in 2023