Accrual Period

The normal accrual period is thirty-five years; these are the years in which you are accruing your pension. If you have the full thirty-five membership years to your credit, your old-age pension will be approximately 70% of your average indexed pensionable base.

Adjusting the balance between dependant’s pension and old-age pension
The standard dependant’s pension is 70 per cent of your old-age pension. However, you can trade in all or part of your dependant’s pension rights in order to get a higher old-age pension, or give up part of your old-age pension in order to provide your spouse or partner with a bigger pension in the event of your death.

 

Advisory Council (Adviesraad)

Since 1 January 2003 this council is the successor of the Council of participants (Deelnemersraad). It gives the Board advice in respect of all the decisions the board makes concerning the pension fund. For the present composition of the Advisory Council we refer to our website: www.nedlloydpensioenfonds.nl

 

AOW (State) pension

In the Netherlands, you are entitled to a state pension from the month in which you become sixty-five. The state pension is often referred to as AOW pension, because entitlement is based on the Algemene Ouderdomswet (General Old-Age Pensions Act). The actual amount payable depends on the number of years that you have been living in the Netherlands and your domestic circumstances (whether you are single or married/living with someone).

At the moment, if you have a partner, you each get an AOW pension, together coming to 100 per cent of the AOW allowance. If you are single, you get a pension equal to 70 per cent of the AOW allowance. If one partner is sixty-five or older, but the other is still less than sixty-five and either has no independent income or earns less than a certain amount, the older partner currently receives a supplement. However, this supplement is to be scrapped with effect from 1 January 2015. After that, a married/cohabiting person of sixty-five or older will receive 50 per cent of the AOW allowance, no matter how old his/her partner is.

 

Average Pay plan

Pension system not based on your final pay, but on the average pay you earn during your time with your employer.

 

Board

The board of Nedlloyd Pension Fund consists of three members on behalf of the employer, three members on behalf of the employees and three members on behalf of the pensioners. For the present composition of the board we refer to our website: www.nedlloydpensioenfonds.nl

 

Consumer Price Index (CPI)

The purpose of the CPI is to measure changes over time in the general level of prices of goods and services that households acquire for consumption. The CPI can be conceived of as a (partial) cost-of- living index. The CPI is used as a measure of inflation, for indexation of wages, pensions, rents, for adjustment of taxes, etc.
(For more information: www.cbs.nl).

 

Council of participants (Deelnemersraad)

Predecessor of the Advisory council. Based on the Pensions- and Savings Act it was until 1 January 2003 the advisory council of the Nedlloyd Pension Fund.

 

Deferred pensioner

This is a member who has left the scheme, but will get benefits when he or she retires.

 

Defined benefit (DB)

This is when the rules of the pension scheme decide how much pension the member will get. This pension benefit is part of the agreement between the employer and the employee.

 

Defined contribution (DC)

This is when the size of the members' pension is not decided by the rules of the scheme, but will be affected by how much money is put into the pension fund. The defined contribution is part of the agreement between the employer and the employee.

 

Death in service

Death in service is death before you reach retirement age, i.e. during the accrual period.

 

Deductible

Company pension schemes are set up to take account of the fact that, from the age of sixty-five, you will be eligible for a state pension (AOW pension). You don’t accrue pension rights in respect of the first part of your salary. This part of your income is referred to as the deductible and is used to calculate your pensionable base: your pensionable earnings less the deductible equal your pensionable base.

 

Dependant’s pension (DP)

A dependant’s or survivors' pension is a pension payable to your spouse or partner in the event of your death. The standard pension package provides for a dependant’s pension in the event of your death either during the accrual period or after retirement.

Disability Insurance Employed Persons Act (WAO, now WIA)
An insurance cover for employees providing for benefits after one year of disability.

 

Disability Pension

Pension benefit after one year of disability for the wholly or partially disabled members with a pensionable salary above the maximum salary benefiting from the WIA. (2010: € 48.716).

 

Disability Pension gap (WAO-gat)

WAO gat is the difference between the benefit from the WAO which could be obtained before 1994, namely 70% of the maximum salary benefiting from the WAO, and the supplementary payment related to the minimum wage.

 

Early retirement base

The early retirement base equals the pensionable earnings.

 

Early retirement pension

Early retirement pension is the pension payable between the age of 62 and 65. The aim of the Nedlloyd Pension Fund pension scheme is to provide you with a pension of 84% of the average indexed pensionable earnings. This pension is higher than the old age pension because in this period no AOW will be received.

 

Employee

An employee is a person working for Maersk Holding BV or an affiliated employer.

 

Employer

Employer is Maersk Holding BV or an affiliated employer who is making the contributions on your behalf into the Nedlloyd Pension Fund.

 

Equalisation

If you opt to have your pension ‘equalised’, your old-age pension payments are adjusted to keep your net income as steady as possible over the period following your retirement. This can be worthwhile if there might otherwise be ups and downs in your income after retirement, which may be the case if you take early retirement, for example.

 

Final Pay

A defined benefit scheme where the benefit is calculated by reference to the final pensionable earnings of the member, usually also based on pensionable service.

 

Funding ratio

This is the comparison between the assets and the liabilities of the pension fund expressed in a percentage of the liabilities. See the annual report of the Nedlloyd Pension Fund for the actual funding ratio of the pension fund. The Pensions- and Insurance Supervisory Authority (The Dutch Central Bank, formerly PVK) has set the required minimum funding level at 105% of pension liabilities.

 

Indexation

Increasing the pensions with the change in the General Wage or Price Index, in order to protect the pension payments against the consequences of inflation.
Nedlloyd Pension Fund is aiming to increase pensions with the General Wage Index, if the financial position of the Fund allows for this. Indexation is dependant on the funding ratio of the fund.

Indexation is conditional; you do not have a right on indexation and it is not certain when and how much indexation will be granted.

 

Individual Pension Savings (IPS)

You have the opportunity to pay extra money into the pension scheme with a view to, say, stopping work sooner or boosting your pension. If you make additional voluntary contributions, they are deducted from your pre-tax pay, but are subject to limits applied by the tax authorities.

 

Investment profile

If you opt to invest some of your pension contributions yourself, or if you make voluntary contributions, you need to enter details of the investment profile you want to use into the ‘PensionPlanner’. An investment profile describes the way your money will be invested – in higher-risk but potentially higher-return areas, or in areas that are safer, but might not bring such a high return. The ‘PensionPlanner’ needs this information to work out how much capital you are likely to have by the time you retire. The ‘PensionPlanner’ gives you the following options:

Advice: If you select this option, the ‘PensionPlanner’ works out what returns you are likely to get between now and your retirement date, assuming that you are going to periodically adjust you investment profile in line with the amount of time remaining before your retirement date (your ‘investment horizon’).

Own forecast: If you select this option, a box appears, in which you can specify the return you expect to get (e.g. the return forecast for the portfolio model that appeals to you most).

 

Labour condition

A labour condition is an agreement between employer and employee in respect of the performance of labour and the compensation for that, a.o. a pension to be paid after the active period.

 

Longevity risk

 This is the risk that a member lives longer than expected. The consequences are that the old age pension has to be paid during a longer period and the reserves might be insufficient.

 

Member

Member is another word for participant.

 

Mortality table

Mortality tables published by the Dutch Society of Actuaries are used to take into account the life expectancy of the members in the calculation of the contributions and the provision for pension liabilities. A higher life expectancy will lead to higher pension cost. The newest mortality tables are those covering the period 2005-2050.

 

Nedlloyd Pension Fund

Stichting Nedlloyd Pensioenfonds (Nedlloyd Pension Fund) is the full and legal name of the pension fund where your pension has been insured. In 1971 it was established when the different shipping companies merged into the Royal Nedlloyd Group. Due to the reverse listing in 2004 the company’s name changed into Royal P&O Nedlloyd. In 2005 the latter was taken over by Maersk. For more information we refer to our website: http://www.nedlloydpensioenfonds.nl

 

Old-age pension (OP)

The pension scheme provides for you to receive a pension from the day you retire to the day you die. This (company) old-age pension, as it is known, is in addition to the state pension (AOW pension) that every Dutch citizen is entitled to. The aim of the Nedlloyd Pension Fund pension scheme is to provide you with a pension of 70% of the average indexed pensionable base.

 

One-off voluntary contribution

You have the option of topping up your pension fund by making a one-off voluntary contribution out of your bonus or profit-sharing bonus. Such contributions are ‘one-offs’ in that there is no commitment to making regular fixed contributions. The tax authorities set limits on the size of one-off voluntary contributions.

 

Orphan’s pension

If you die before you reach retirement age, an orphan’s pension is payable to each of your unmarried children who is aged less than eighteen or still studying and aged less than twenty-seven. If you have four or more qualifying children, the total amount payable in orphan’s pensions is subject to a limit of five times the individual orphan’s pension; this amount is divided equally between the qualifying children.

 

Partial retirement

The Nedlloyd Pension Fund pension scheme gives you the option of taking partial retirement any time between the ages of fifty-five and sixty-two. Partial retirement involves cutting your working week and drawing pension in respect of the time you don’t work. You might, for example, go from working five days a week to working four, and take a pension in respect of the other day. Then, as time goes by, you can gradually work less and less until you finally retire altogether.

 

Participant

All employees of affiliated companies, who are member of the office organisation, are participant of the pension scheme. The only people at the employer who cannot join are agency staff, interns and holiday workers.

 

Participant Contribution

The contribution from the participant to the pension scheme. The maximum contribution is 5% of the pensionable base. Depending on the collective labour agreement the participant contribution may have been decreased to 0% in 1993.

 

Past service

This is the service before the member has joined the pension scheme or the service before a particular date.

 

Past service accelerated accrual

This is the increase with 14,3% (= 2 divided by 1,75%) in respect of the service years up to the 1st of July 2001 of the per 30 June 2001 existing pension liabilities. In the years up to 1 July 2011 each year 10% of that increase will be paid into the pension fund as defined contribution. Only applicable when you were a member on the 30th of June and the 1st of July 2001. This arrangement was terminated in December 2003 because it was decided to immediately finance the remaining years.

 

Past service early retirement

This is the extra contribution to finance the past service over the period of your 25th birthday until the 1 July 2001 in order to enable you to retire with a full early retirement pension when you reach a full service of 35 years. In the years up to 1 July 2011 each year 10% of that increase will be paid into the pension fund as defined contribution. Only applicable when you were a member on the 30th of June and the 1st of July 2001.

 

Pension accrual period

To be entitled to a full company pension, you need to have thirty-five (fictional) years of participation to your credit. If there isn’t time for you to complete thirty-five years' participation before you retire, there are things you can do to nevertheless bring your pension up to the full level.

 

Pensions- and Insurance Supervisory Authority (PVK)

The Pensions- and Insurance Supervisory Authority (PVK) of the Netherlands is responsible for the supervision of insurance companies and pension funds.The aim of the Pensions- and Insurance Supervisory Authority of the Netherlands is to ensure that insurers and pension funds fulfil their obligations to policyholders, pension scheme members and pension recipients.The responsibilities and activities of the Pensions- and Insurance Supervisory Authority of the Netherlands, PVK are carried out pursuant to a number of Acts of Parliament. For pension funds the most important is the Pensions and Savings act (PSW), which stipulates that all company pension funds are subject to this supervision.

 

Pensions- and Savings Act (PSW)

The basic principle of the PSW is that if an employer makes a pension commitment, he can fulfil that commitment in a number of ways. He can, for example, link his company to a company pension fund or join a sector pension fund. PSW supervision therefore only comes into the picture when a pension commitment has been made. Pursuant to the PSW, it is important that a pension commitment is actually complied with once it has been made. The PSW includes a number of provisions designed to facilitate this. It also focuses on the financial and actuarial structure of the funds and the content of the articles of association and pension rules.

Starting 1-1-2007 the PSW was replaced by the Pension Act (PW). 

 

Pension Assets (Total)

All the assets of the pension fund less the short-term liabilities. This difference is called the total Pension Assets (Pensioenvermogen) that are available for pensions.

 

Pension Rules (Pensioenreglement)

The Pension Rules is a legal document in which a detailed description of the pension scheme explaining the rights and obligations of the employer, the members and the pension fund. See Summary Pension rules 2001 The board of the pension fund is responsible for the contents of the pension rules. See for the actual pension rules our website: www.nedlloydpensioenfonds.nl

 

Pension Splitting (Pensioenverevening)

This is when a member gets divorced and the pension benefits are split between them and their ex-husband or ex-wife. Rules to allow or order pension splitting became law in 1995.

 

Pension statement

As a participant of the pension scheme, you get an annual statement detailing your pension position. To use the ‘Pension Planner’, you need to enter figures given on your statement.

 

Pensionable base

Your pensionable base is your salary (i.e. your pensionable earnings) less the deductible. Your pensionable base is used to work out how much has to be paid into your pension fund.

 

Pensionable earnings

Everything you earn that is taken into account when working out how much is to be paid into your pension fund. It concerns the regular components of your salary: Gross salary, holiday bonus and if any a 13th month.

 

Pensioner

This is someone who is receiving a pension at the moment.

 

Registered partnership

Since 1 January 1998, it has been possible for couples that live together to register their relationships. Such couples are then treated like married couples in almost all respects.

 

Retirement age

Under the Nedlloyd Pension Fund pension scheme, the standard retirement age is sixty-two. Although this is the age suggested for retirement, you do not have to retire at sixty-two. In principle, you can retire any time between the ages of fifty-five and sixty-five.

 

Retirement date

The date on which you retire completely from your employers' service.

 

Rights accrued elsewhere

In addition to the rights you have built up through your participation of the Nedlloyd Pension Fund pension scheme, you may have built up rights elsewhere, such as:

• Pension rights that you built up when you belonged to another pension scheme;
• Annuity policies, etc.

  

Risk premium

This is the premium to cover the risk of death in service, the waiver of premium at disability and the disability pension. The risk premium is paid by the employer to the pension fund.

 

Service year

A service year is every year the member has been employed by the (affiliated) employer.

  

Surrender

This is when a pension policy is cancelled and the pension fund pays an amount (surrender value) to the member. Surrender is only possible at the retirement date and when the yearly pension is below a certain amount (in 2010: € 420,69).

  

Survivors' Pension Gap (Anw-gat)

The survivors' pension gap is the difference between the benefits from the Survivors' Pensions Act (Anw) and the in 1996 abolished General Widows and orphans Act (AWW). It is an option to make voluntary contributions in order to fill this survivors' pension gap.

  

Transfer payments (Waardeoverdracht)

This is the amount that a scheme may pay when a member leaves. This amount will go into the new scheme that the member has joined. The Nedlloyd Pension Fund scheme may make this transfer payment because of the scheme's rules or because of the members' rights under the law (a statutory transfer).

  

Varying your pension

Within certain limits, you can decide how your pension is paid out over the course of your retirement. You can, for example, opt to have a relatively large pension in the early years, and less later.

You don’t need to decide how your pension payments will be spread out until you actually retire. Nevertheless, the ‘Pension Planner’ allow you to see the effects of varying your pension payments in different ways.

  

Wage index

This is the change in the wages of employees working for private companies, calculated by Central Bureau of Statistics in the Netherlands (See for more information www.cbs.nl) The Nedlloyd Pension Fund uses this index to increase the (deferred) pensions.

  

Waiver of premiums at disability

The accrual of pension will continue in case of disability of the member. The employer has been paying a supplementary charge in order to insure this.

  

Years of participation

The number of years that you spend as a participant (member) of the pension scheme is important in relation to your pension entitlement. You need to be a participant for thirty-five years to get a full pension. If you have not been a participant for thirty-five years by the time you retire, you are not automatically entitled to a full pension from the Nedlloyd Pension Fund. If you have been a participant for more than thirty-five years, your pension will be higher than normal, or you can qualify for a temporary old-age pension.

If you used to be a participant of another employer’s scheme and you transfer your pension from that scheme to the Nedlloyd Pension Fund scheme, you are awarded a number of fictional years of participation.

  

Yield

The yield is the income from an investment including any change in value of an investment over a period