This video is developed for employees who are currently accruing pension in the SNPS-scheme. These employees joined Shell on or after 1 July 2013. In this video, we will explain how the new Future Pensions Act may affect your pension in the SNPS scheme.
The pension system in the Netherlands is going to change. What the new system should look like is described in the Future Pensions Act. We will have to change our pension schemes too. The changes are mainly about the future pension accrual. In this video, we explain what the changes could be for you.

In the future, everyone in the Netherlands will accrue a pension in a premium scheme. The SNPS scheme is such a premium scheme and we will keep this type of scheme for the future. Nevertheless, this scheme will change slightly as a result of the new law. To be more precise, the new law states that in principle every employee will get the same contribution rate instead of a contribution rate that increases as you get older, as is the case now.

But the new law also states that for current employees, the premium rate may continue to be based on the age of the employee. We are currently discussing these changes with the Central Works Council. In any case, what will not change is that we want to continue offering a good pension scheme. When we can share more details on this, we will let you know.

Imagine, all SSPF pensions together are one big jug of coffee. In the new system, we will no longer have 1 jug of coffee together that we drink from but we will each of us have our own individual cup of coffee.

But what happens to the coffee that is now in the jug? That coffee will be distributed to all participants. How do we do this? First, everyone will get a large mug instead of a cup. This is because there is more coffee in the jug than it takes to fill all the cups. When all the coffee is distributed then everyone gets much more coffee in the mug. After distributing, the coffee jug is empty. There is nothing left to divide. From now on you have your own mug of coffee. In one year there is a sip more in it because the investment returns are better than expected. And in the other year there’s a sip less in it because the returns are less. But we assume that in the end you have more coffee in your mug than you would have had in your cup before.

But what if we don’t distribute the coffee but leave it in the jug? Then the coffee stays in the jug. Your coffee stays there for you and is not poured into your cup until you retire. If you are already retired then nothing changes for you. Your coffee will still come from the same shared jug.  And as long as there is enough coffee in the jug, you get some extra coffee from the jug every year for inflation, just as you do now. But the people who now work at Shell, they do get an additional cup.

That new cup represents the pension plan that will apply to all employees for the future.

The new cup only belongs to you because in the future in the new scheme you will accrue an individual pension. So in the future, your own coffee will be served in your own cup. The coffee in that new cup will fluctuate based on investment returns. In one year a little more, in the other a little less. But we think it will eventually lead to more coffee in your new cup.

In this video, we have explained in a simple and straightforward way how we can deal with the accrued SSPF pensions. Would you like to know more about this?

Then watch the detailed explanation video.

This video is a simple explanation of how we can deal with the accrued pension.The pension system in the Netherlands is going to change. What the new system should look like is described in the Future Pensions Act. We will have to change our pension plans too. The changes mainly concern the future pension accrual, but the pension you have already accrued in SSPF may also change. In this video we explain how we can deal with the pension you have already accrued. The new law states that all accrued pensions must be converted into the new scheme. Your pension in SSPF as well. This is also referred to in the new law as conversion. If the accrued pensions and the pensions of the pensioners are converted into the new scheme, all former employees and pensioners will receive a personal pension pot. This pension pot will be increased by a portion from the SSPF’s buffers. Buffers are the extra money the pension fund has set aside, on top of the money needed to pay the pensions. The buffers can be distributed in several ways; in the form of an increase in your pension, either once or spread out over several years, or in the form of new buffers. This way you are compensated for the fact that there are more risks involved. The law states that all pensions must be converted in the new scheme. In fact, we may only deviate from this if conversion in is disproportionately disadvantageous to a particular group. Are you already retired at the time of conversion? Then you have a choice; you can opt for a fixed or a variable pension. In other words, you can choose a pension that never changes in amount but does decrease in value due to inflation, or you can choose a pension payment that fluctuates with investment returns. This can lead to a higher pension, but in some cases also to a lower pension. To prevent your pension from going up and down too much, the pension fund ensures that the investment returns are spread out over a number of years so that your pension remains as stable as possible. If you haven’t yet retired, you will not have this choice until you retire.If the exception can be used pensions will not be converted, we will leave your accrued pension behind. Your pension remains in the current SSPF scheme. The current conditions also continue to apply to that accrued pension, including the Shell guarantees and the annual increase. But you will not get a share of the buffers. In this video we have explained how we can deal with the accrued pension. We also discuss this with the COR and the pension fund as part of the discussions about the future of our pension. VOEKS is also involved because they represent Shell’s pensioners and former employees. An important condition is that there must be a balanced decision for all parties concerned. As soon as we can share more on this topic you will hear from us.

My name is Thijs Terwindt and since November 1, 2022, I am the chairman of Shell’s Central Staff Council in the Netherlands. One of the biggest topics we are currently working on is the Future Pensions Act. The Central Staff Council has now formed a small team to start shaping the discussions with Shell The Netherlands on the new pension system and also the transitions towards it in the coming months.

Thijs, can you tell us a bit more about the process and timelines?

Yes, the process actually started a while ago. We have been preparing for the Future Pensions Act for about a year and a half. We already shared a lot of knowledge, Shell Netherlands and the COR, so that we would enter into the final phase of this consultation well prepared. Now, as of 30 May, the new law has also been passed in the Senate and we are really going to talk about what this new pension system is going to look like and how we are going to make the transition from the various funds to the new pension system. In this case, the Central Staff Council, has to take not only the interests of the employees into consideration, and of course of the employer, but also the interests of the pensioners and deferred members. This is a rather unique position because it involves a very large group of people with huge interests. But we are now going to put that process in place and that is certainly going to take until the end of the year, including the regular consultation and also the hearing rights of pensioners and deferred members. So that’s pretty much what the process looks like.

Good to hear.

And Thijs, how will the Central Staff Council ultimately look at this change?    

Well, during the preparations we of course discussed what the interests of everyone are and how we should measure and assess the new system, the transition and the compensation. And what we find very important, and the law also prescribes this, is that it should be a balanced decision. So that means that people, or groups of people so to say, should not really be affected negatively. That will be quite a task to figure this out. Shell Netherlands will of course also provide overviews whereby we can gain insight into how this will work out for the various age groups. But that is one of the most important elements, that the ultimate decision is balanced for all participants.

Thijs, how do you feel about the cooperation at the moment?

The collaboration with Shell Netherlands is very good. But we also work together with VOEKS. That’s the association of pensioners and deferred members. They are actually not at a formal discussion partner for shaping the new pension system but they do have a right to be heard according to the law. However, we decided to involve them at an early stage. So we have already had several sessions together with Shell Netherlands and in the autumn they can formally comment on the proposal.

Thank you