The Nike Dutch Pension Plan of Stichting Pensioenfonds Nike Nederland

Transcription

1 The Nike Dutch Pension Plan of Stichting Pensioenfonds Nike Nederland Article 1. Definitions In this pension plan regulations ( pensioenreglement ) the following definitions are applicable: Fund Board Nike Employer Employee Participant Former participant (Former) participant Reference date Fixed salary Maximum limit of pensionable salary : the pension fund "Stichting Pensioenfonds Nike Nederland". : the board of the fund. : Nike European Operations Netherlands B.V., having its registered office in Hilversum. : Nike, together with all its affiliated subsidiaries, which have made an administration & finance agreement with the fund for the establishment of the pension interests of their employees according these regulations. : the person employed by the employer based on an employment agreement according to Civil Law. : the employee who, based on article 2, is admitted as participant to the Nike Dutch pension plan described in these regulations. : the employee whose membership of the pension plan has ended as a result of article 2 paragraph 4, sub a and who, according to these regulations, retains his/her entitlements to the accrued pension capital in the pension account. : the participant and the former participant. : January 1 st of any given year. : the monthly gross income that is earned at commencement of employment and each reference date (if applicable), increased (if applicable) by the monthly tax-free reimbursement for extraterritorial costs in accordance with Article 31a, paragraph 2, letter e of the Act on Paye taxation 1964 (Wet op de loonbelasting 1964) multiplied by twelve plus the vacation allowance. : pensionable salary (the sum of fixed salary and gross bonus, the latter if and so far applicable) shall not exceed 105,075 (amount per January 1 st, 2018). For part-time employees, this amount will be reduced by the part-time factor. This amount will be adjusted as per 1 January of each following year on the basis of article 18ga, paragraph 2 of the Act on Paye taxation

2 Part-time employee Part-time factor Offset Pension base Retirement target date Retirement date : the employee for whom the agreed working hours according to his/her employment agreement are less than the full number of regular working hours based on full time employment. : the fraction of which the numerator is equal to the agreed upon number of working hours and the denominator is equal to the full number of working hours. : 13,344 in 2018 (for partner s and orphan s pension prior to retirement date: 15,099 in 2018). The offset is adjusted by the board annually as of January 1 st in line with the development of the annual gross retirement pension for single persons that is paid according to the AOW as of January 1 st of the year in question compared to the gross retirement pension payable as of the preceding January 1 st. The offset equates at least to the minimum offset based on the fiscal regulation, as resulting from the stipulations in article 18a paragraph 8 of the Act on Paye taxation : the fixed salary minus the offset. : the first day of the month following the day the (former) participant reaches the age of 68 years. : the first day of the month in which the retirement pension actually starts, but no sooner than the first day of the month following the day the (former) participant reaches age 57, and no later than the first day of the month in which the (former) participant reaches the date that equals five years after his AOW-age. Pension account : the pension account as meant in article 5, paragraph 2. Pension : the pensions as meant in article 3. Pensioner Partner : the person who receives a pension from the fund. : 1. the lawful husband or wife of the participant; 2. the registered partner of the participant in the sense of heading 5a of Book 1 of the Civil Code; 3. the unmarried person with whom the unmarried participant lives together (cohabitation) taking the following into account: the participant and his/her partner are not related to each other in direct line; the partner is reported in writing to the fund as a beneficiary upon death; the joint household is a non-profit relationship between no more than two persons, and the joint household has existed for at least six months and has been laid down in a contract executed by a notary containing affairs regarding law of property. In the case the joint household has demonstrably existed for the fund for at least three years, no such contract is needed. 2

3 For the application of these regulations, there can only be one partner at any time. Insurance company Pension provider UWV-Werk WIA Pension Act AOW AOW-age : the insurance company as referred to in article 1 of the Pension Act. : a company pension fund, an industry wide pension fund, general pension fund, pension premium institution or Insurance company, as referred to in Article 1 of the Pension Act. : Implementation Institution for employee insurance (Uitvoeringsinstituut werknemersverzekeringen). : Implementation Institution for employee insurance (Wet werk en inkomen naar arbeidsvermogen). the Dutch Pension Act (Pensioenwet). : the Dutch General Old Age Pension Act (Algemene Ouderdomswet). : the pensionable age at which the (former) participant becomes eligible for AOW pension, as described in Article 7a of the AOW. Article 2. Participants All employees, who are at least 21 years of age participate in this plan unless the fund, the employee, and the employer have agreed that the employee is exempted from the obligation to participate. Such an exemption will only be offered in special cases, is to be stated in writing in a special form issued by the fund and to be signed by the fund, the employer and the employee. Employees younger than 21 years old are also being offered to participate. They will benefit from the employer s contribution as reflected in attachment 2 of these regulations. Their participation is not mandatory until they reach the age of 21. Participation commences per the date agreed between the employer and the employee, however the conditions stipulated in paragraph 1 should be met. Paragraph 3 Without prejudice to the provisions of paragraphs 1 and 2, a risk capital for partner's and orphan s pension is insured for employees aged less than 21 years with a partner and/or child(ren). The insured risk capital for partner's and orphan s pension is determined in accordance with article 6. There is no contribution payable by the employee for this insurance. The insurance lapses with no value at the time when: a. the employee s employment is terminated; or b. the employee is admitted to the pension scheme described in these regulations or at the time that the fund, the employee and the employer have agreed that the employee is exempt from the obligation to participate. Participation ends upon: a. termination of employment except in the case of pension accrual in the event of disability (see article 9); 3

4 b. death of the participant; c. the retirement date. Participation ends in any case when the administration & finance agreement between the fund and the employer with whom the participant is employed ends without being immediately followed by a new administration & finance agreement. Article 3. Entitlements Employer and employee have agreed upon: * a defined contribution agreement ( premieovereenkomst ) in respect of the pension capital; * a capital agreement ( kapitaalovereenkomst ) in respect of the partner- and orphan s pension in case of death of the participant; * a benefit agreement ( uitkeringsovereenkomst ) for the disability pension; as meant in article 1 of the Pension Act. The pension entitlements on the basis of the agreement as referred to in paragraph 1, are insured on the basis of an administration & finance agreement between the employer and the fund. The fund has insured the pension entitlements with regard to the benefit agreement with an insurance company. Paragraph 3 All entitlements and obligations of the employee and the employer with reference to the agreements in paragraph 1 are included in these regulations and the insurance agreement between the fund and the insurance company. Subject to the conditions as described in these regulations and the articles of association of the fund, the participant is entitled to an employers contribution to be contributed annually as per the reference date. This contribution is paid into a pension account for the purpose of the accrual of pension capital for the participant. On the retirement date this pension capital is allocated for the purchase of an old age pension according to the Pension Act and, if there is a partner in the sense of article 1, a partner pension according the Pension Act (equates to 70% of old age pension), as further described in article 5, paragraph 4. The purchase shall take place with an insurance company chosen by the participant (see article 5, paragraph 4) and as further described in article 5. Paragraph 5 The participant who has a partner, is entitled to a risk capital for the purchase of a partner s pension and a risk capital for the purchase of an orphan s pension, that are paid out in case of the participant s death prior to the retirement date, under the conditions as described in these regulations and the articles of association of the fund. Paragraph 6 The participant is entitled to a disability pension under the conditions as described in these regulations and the articles of association of the fund. Paragraph 7 All pension entitlements and pensions on behalf of these regulations are on annual basis and in euro s, unless these regulations specifies otherwise. 4

5 Article 4. Funding pension (capital) entitlements Both the participant and employer pay a contribution for the accrual of the pension capital. The participant s contribution and the employer s contribution for the accrual of the pension capital will hereafter be referred to as the contributions, unless specified otherwise. All contributions are defined as a percentage of the pension base. The participant s own contribution for the benefit of the accrual of the pension capital is stated in attachment 2 (Column Participant contribution ). The participant s contribution in any given year is defined as the applicable percentage of the pension base in the same year. The participant s contribution is withheld by the employer from the participant s gross monthly salary and is paid to the fund for deposit in the pension account directly after withholding. Paragraph 3 The employer s contribution is stated in attachment 2 (Column Employer contribution ). The employer s contribution in any given year is defined as the applicable percentage of the pension base in the same year. In addition to the contributions to be contributed the employer pays the premium to the fund, that the fund owes to the insurance company for insurance of the partner, orphans and/or disability pensions, as further described in articles 6 and 7. In addition to the participant s contribution as referred to in paragraph 2, the participant can make a voluntary extra contribution. The voluntary extra contribution may not be higher than the maximum percentage as stated in attachment 2 (Column Voluntary extra contribution (maximum) ). The maximum voluntary extra contribution in any given year is defined as the applicable percentage of the pension base in the same year. The amount must be at least 500 (one time payment) or at least 50 (monthly payment). Paragraph 5 In addition to the participant s contribution as referred to in paragraph 2 and the voluntary participant s contribution as referred to in paragraph 4, the participant being eligible for a bonus can make a voluntary extra contribution. This voluntary extra contribution is only possible with regard to that part of the gross bonus that together with the fixed salary fits within the maximum limit of the pensionable salary as referred to in article 1. The voluntary extra contribution may not be higher than the maximum percentage as stated in attachment 2 (Column Voluntary extra contribution (maximum) bonus ). The maximum voluntary extra contribution in any given year is defined as the applicable percentage of that part of the gross bonus that together with the fixed salary fits within the maximum limit of the pensionable salary in the same year. The amount must be at least EUR Paragraph 6 If the participant, wholly or partially, does not make the voluntary extra contributions mentioned in paragraph 4 or 5 in any given year, the participant may do so in a later year of participation as described in the Dutch Act on Paye taxation The maximum amount of this voluntary catching-up contribution will be determined in accordance with the pension regulations that are applicable in the year upon deciding to make a voluntary catching-up contribution. 5

6 Paragraph 7 The voluntary extra contributions and catching-up contribution will be allocated in accordance with article 3, paragraph 4. Furthermore the participant will be granted an extra claim to partner s pension which shall be calculated by analogy with article 6, paragraph 2, second and third sentence. The amount of the voluntary extra contributions and/or catching-up contribution will be withheld by the employer from (a part of) the participant's gross salary (or if applicable gross bonus) to be agreed upon between the employer and the participant with regard to the time of withholding and paid to the fund for deposit in the pension accountdirectly after withholding. Paragraph 8 The employer has the right to lower, restrict or terminate its contribution to the pension plan in case of a major change in circumstances as referred to in article 12 of the Pension Act. In case the employer follows up on this right, the participants will be notified about this forthwith and will be informed on the consequences. The current pension capital of the pension account (on the basis of the contributions which has been paid), consisting of the amounts already paid, will not be affected. Paragraph 9 If a participant has entered the pension plan on or after January 1 st, 2015 and makes during his/her participation the request to transfer the value of his/her entitlements accrued with the previous pension provider to the fund, the fund complies with the relevant stipulations of the Pension Act. The fund takes into account the provisions in article 6 paragraph 2. Article 5. Pension account and retirement (target) date The contributions and the voluntary extra contributions will be invested and constitute the pension capital. For every participant the fund opens a pension account with a financial institution designated by the board. The investment takes place in investment funds offered by the financial institution and designated by the board, in accordance with the instructions of the (former) participant. If the (former) participant does not give instructions, the investments will take place in funds designated by the board, taking in account the preference of the (former) participant for fixed or variable pension payments upon retirement. The (former) participant that has not given a preference will be deemed to prefer fixed payments. The (former) participant that wants to give instructions regarding investments, needs to have filled in a risk profile which has been determined according to article 52 of the Pension Act. As long as his risk profile has not been determined investment will take place in the investment funds as designated by the board. The fund advises the (former) participant that gives instructions regarding investments about the investments in relation to the time period until the retirement (target) date, within the boundaries in article 52, paragraph 3 of the Pension Act, at least once a year and shall inform the (former) participant accordingly. 6

7 Paragraph 3 The direct costs of transactions regarding the (former) participant's pension plan will be withdrawn from the pension capital in the (former) participant s pension account. The direct costs are the costs which are agreed upon between the Fund and the financial institution. These costs and any other costs shall be published by the Fund to the (former) participants in the usual way the Fund publishes other information. On the retirement target date the (former) participant must use the pension capital to purchase one or more of the following pension benefits (pension rights and/or entitlements) from a pension provider to be designated by the (former) participant: an old age pension according to the Pension Act; a partner pension according to the Pension Act on behalf of the (former) participant s partner, if the (former) participant has a partner on the retirement target date. The standard level of partner pension is 70% of the old age pension. If the (former) participant decides not to purchase a partner pension or to purchase a lower partner pension, a written consent of the partner is required. The level of pension benefits is entirely based on the level of the individual s accrued pension capital and the purchase rates applicable at the time of the pension purchase at a pension provider to be selected by the (former) participant with due observance of that mentioned in paragraph 6, 7, 8 and 9. As soon as the pension capital is used to purchase pension benefits with a pension provider designated by the (former) participant, the beneficiaries are designated as such and the fund is fully discharged from its obligations. If the pension provider is a pension fund, this fund can only be designated if the (former) participant already has pension benefits with that fund. Paragraph 5 In deviation from that stated in paragraph 4, the employer and the participant may agree - one time only and irreversible- on another retirement date than the target retirement date. A former participant can choose another retirement date without consent of the employer but within the restrictions set in this paragraph. In case the intended retirement date is prior to the retirement target date (acceleration), the participant must inform the employer and the (former) participant needs to inform the fund not less than three months prior to the intended retirement date. The (former) participant must show to the fund that this acceleration is linked to his/her retirement, within the restrictions set for a pension plan in the sense of the Wages Tax Act In case the intended retirement occurs after the retirement target date (postponement), the participant should inform the employer and the (former) participant needs to inform the fund about this in writing at least three months before he/she reaches the retirement target date. The retirement date for participants can only be postponed if and insofar as the employment agreement is being continued, which requires explicit and written mutual agreement by both the employer and employee. Upon postponement of the retirement date, the participant s accrual of pension capital in the pension account will continue. The contributions are equal to that of the highest age bracket of the table that is shown in attachment 2. The old-age pension will start immediately after the (postponed) retirement date has been reached. 7

8 Paragraph 6 The fund will assess per (a) the date immediately preceding the transfer of the pension capital as referred to in article 9, paragraph 3; and (b) the date of death of the participant or former participant; and (c) the retirement date whether the total pension benefits that the (former) participant or his/her survivors that are beneficiary can purchase with the pension capital that is accrued as of January 1st, 2015 remain within the maximum tax limits as specified in chapter IIB and VIII of the Dutch Act on Pay taxation 1964 with regard to a final pay plan ( eindloonregeling ). For this assessment the years of service as of January 1st, 2015 only will be taken into account. For determining this tax limits the final pay pensions can be increased with 3% each full year after termination of participation. Paragraph 7 If the assessment shows that the pension capital is higher than is needed to purchase the pension benefits from a pension provider to the maximum limits as specified in paragraph 6, the excess of the pension capital will be credited to the fund s adjustment reserve as referred to in attachment 1. The pension benefits shall not be higher than the maximum limits described in the previous sentence. Paragraph 8 If the assessment shows that the pension capital is lower than is needed to purchase the pension benefits from a pension provider to the maximum limits as specified in paragraph 6, the pension benefits are equal to the pension benefits that can be purchased with the pension capital. Paragraph 9 The assessment as referred to in this article will take place on the basis of fictional market purchase rates to be determined by the board of the fund, unless actual purchase rates are applicable because of the purchase of pension benefits. The purchase rates described in the previous sentence are disclosed on the website of the fund. The purchase rates at the date of assessment are decisive. Article 6. Partner s and orphan s pension prior to retirement date For participants with a partner, a partner s risk capital will be determined each year and this risk capital will be insured at the expense of the employer. The partner s risk capital is equal to the present value of the target level of partner s pension. The target level of partner s pension is calculated annually by multiplying the years of service, calculated according to that stated in paragraph 2 of this article, by 1.16% of the last determined pension base, using the relevant offset. In case of death of the participant immediately following a period of illness, the pension base shall be determined on the basis of the fixed income of the participant immediately prior to the first day of illness. The present value of the target level of partner s pension is determined on the basis of the insurance contract with the insurer. 8

9 The target level of partner s pension serves exclusively as a calculation variable for determining the partner s risk capital to be insured. The participant and the partner can therefore derive no rights from this target level. The actual level of the partner s pension depends exclusively on the insured risk capital and on the rates applicable at the time of conversion of this capital at the insurer where the risk capital is used. The years of service as stated in paragraph 1 will be accurately determined in years and months upon entrance as a participant, in which part of a month will be neglected. The years of service are equal to the time between the commencement of participation and the retirement target date, with a maximum of 47 years. If the participant makes use of the right as laid down in article 4 paragraph 9 to transfer the value of entitlements accrued elsewhere to this plan, the participant will be granted extra years of service, provided that the total years of service will not exceed 47 years and the participant does not keep a right to partner s pension with the transferring pension provider. The extra years of service for the application of this article will be determined by a fictional entitlement to old age- and partner pension based on the value to be transferred by analogy with the statutory calculation rules for value transfer, assuming that the old age pension will amount to 1.657% of the pension base and the partner pension 70% of the old age pension for each extra year of service. Paragraph 3 In addition to the partner s risk capital, an orphan s risk capital will also be insured for the participants (if applicable) at the expense of the employer. Per orphan the orphan s risk capital is determined according to but based on a target level of the orphan s pension of 20% of the target level of the partner s pension as mentioned in paragraph 1. The orphan s risk capital is payable upon decease of the participant to each orphan younger than the age of 18 years. orphan s In case of death of the participant prior to the retirement date, the accrued pension capital will be credited to the funds adjustment reserve as referred to in Attachment 1. Paragraph 5 In case of death of the former participant prior to the retirement date, the accrued pension capital shall be used to buy a partner pension and an orphan s pension, if applicable, as long as at the time of death a partner or one or more children as defined in these regulations is alive. The purchase of a partner s or orphan s pension will in this case be made from a pension provider designated by the partner. The partner s and potentially orphan s pension amount payable is solely based on the level of the individual s accrued pension capital as well as on the applicable purchase costs upon the moment of purchase. Article 5, paragraphs 6, 7, 8 and 9 applies consistently. If no partner or child is alive, the accrued pension capital will be credited to the funds adjustment reserve as referred to in Attachment 1. Paragraph 6 To cover the rights to partner s and orphan s pension arising from this article, paragraphs 1, 2 and 3 insurance has been taken out by the fund at an insurance company. Article 12 paragraph 10 applies consistently. 9

10 Article 7. Disability pension The participant is considered to be disabled for this plan if the following conditions are met: * the qualifying period for the disability benefits under the WIA started during employment with the employer; * he/she became disabled according to the WIA during or after his/her employment with the employer; * he/she is entitled to a disability benefit under the WIA. The aforementioned conditions also apply for a participant that already was disabled at the start of participation but only for the increase of his existing disability and in accordance with the conditions of paragraph 7 from this article. To cover the rights to disability pension arising from this article, insurance has been taken out by the fund at an insurance company. Article 12 paragraph 10 applies consistently. The disability pension for participants unfit for work under the WIA will commence on the first day of the month in which the (former) participant is entitled to the WIA benefit. The disability pension will end on the last day of the month preceding the month in which the participant no longer receives the WIA benefit, deceases, or retires but ultimately till he/she reaches his AOW-age. Paragraph 3 The disability pension amounts to 70% of the fixed salary which the (former) participant earned immediately prior to the first day of illness and as far as this salary exceeds the WIA annual salary threshold. This threshold equates to 261 times the maximum daily wage as specified in the Social Insurance Coordination Act and article 17 paragraph 1 of the Social Insurance Finance Act respectively and is determined on January 1 st annually. The maximum limit of the fixed salary does not apply. For those participants who are partially disabled, the disability benefit will be proportionally reduced according to the insurance conditions of the insurance company. The degree of disability under the WIA will be determined according to the following formula if and insofar as no degree of disability is determined by the UWV: (Nominal salary [maatmansalaris] minus potential earnings according to UWV), divided by nominal salary [maatmansalaris]. The nominal salary [maatmansalaris] is that as specified by the UWV. On the basis of the degree of disability that is determined by the UWV the following applies: a. As long as the participant receives a WIA benefit based on the bracket 65% to 100% disability, 100% of the disability pension is paid. b. As long as the participant receives a WIA benefit based on the bracket 45% to 65% disability, 50% of the disability pension is paid. c. The (former) participant who receives a WIA benefit based on disability of less than 45% will not receive a disability pension from the fund. 10

11 Paragraph 5 An increase or decrease in the degree of disability will lead to an increase or decrease of disability pension accordingly. Paragraph 6 The participant who works abroad and who is not insured under the WIA is entitled to a disability pension corresponding to the insurance company s conditions. These are available for inspection at the fund. Paragraph 7 This article does not apply if the participant is already unfit for work on entering employment with the employer. The board is authorised to deviate from the provisions of this article. The Dutch covenant on disability pension and waiver of contribution because of disability (Convenant over dekking van arbeidsongeschiktheidspensioenen premievrijstelling in pensioenregelingen van 23 januari 2013) applies consistently. There is no entitlement to disability pension if the day from which the previous employer continues to pay the salary to the employee, pursuant to Book 7, Section 629 of the Civil Code is prior to the time on entering employment with the employer or if the participant was already disabled for work. If however the participant is in the qualifying period of the WIA on the time of entering employment with the employer and is declared unfit for work for 35% or less at the end of the qualifying period, the participant nevertheless is entitled to disability pension if he/she is declared unfit for work for more than 35% four weeks or more after the end of the aforementioned qualifying period. If the participant is declared unfit for work for more than 35% within four weeks after the end of the qualifying period, he/she is not entitled to a disability pension. Article 8. Pension entitlements for part-timers The contributions, the partner s pension and orphan s pension and the disability pension for participants being part-time employees are calculated according to the provisions of this article. In order to calculate the pension base, the fixed salary will be converted to the fixed salary belonging to the full number of working hours applicable to the position in question. Paragraph 3 Contrary to that stipulated in article 6 paragraph 2, the number of years of service are determined for employees that work part-time or have worked part-time as follows: a. for each period during which the part-time factor has not changed, the length of service is determined in years and months; b. the length of service determined according to a. for each period is multiplied by the part-time factor for the period in question; c. the sum of the products determined according to b. constitutes the number of years of service. When making this calculation, the last determined part-time factor is expected to remain unchanged until the retirement (target) date. The participant s contribution as meant in article 4 paragraph 2 and the employer s 11

12 contribution as meant in article 4 paragraph 3 regarding part-time employees are determined by multiplying the contribution, as a result from this article and by applying paragraph 2 of this article, with the part-time factor. In case of a change in the part-time factor, the employee s and employer s contribution of the part-time employee is recalculated as from the same date. Paragraph 5 The actual fixed salary based on part-time work is being used in order to calculate disability pension for a part-time employee. Article 9. Ending of participation/pension accrual in event of disability If participation ends before the retirement date because of termination of employment otherwise than death of the participant, the former participant retains his/her entitlements to the accrued pension capital in the pension account. The right to partner s and orphan s pension as specified in article 6 lapse except in the case the former participant with a partner, is entitled to an unemployment benefit on the basis of the Unemployment Act (Werkloosheidswet) directly after the participation has ended. If so, the former participant is entitled to a partner s pension on behalf of his partner, for the period that the former participant is entitled to a benefit on the basis of the Unemployment Act. The target level of partner pension is determined by multiplying the years of service as referred to in article 6 up till the date the participation of the participant has ended by 1.16% of the last determined pension base. The target level of partner pension shall be decreased with the partner pension, that the partner shall purchase with the pension capital as referred to in article 6, paragraph 5. Upon termination of participation, contributions are no longer deposited into the former participant s pension account. Article 5, paragraphs 4, 6, 7, 8 and 9 and article 6, paragraph 5, consistently apply to the paid-up pension account. This paragraph also applies to former participants with unemployment benefits of their home country. The pension capital in the pension account can be paid to the (former) participant as a lumpsum payment if the old age pension on an annual basis on the date of commencement is less than the maximum according to article 66 of the Pension Act. The lump-sum payment which includes the partner s and orphan s pension is subject to withholding of any statutory tax or premiums payable. Whether the old age pension on an annual basis is less than the maximum according to article 66 of the Pension Act shall be determined by the fund on the basis of the pension capital and the purchase costs of any insurance company to be designated by the fund, both applicable on the date that the determination has taken place. The purchase costs shall be published by the fund in the usual way the fund publishes other information. The lumpsum payment will take place between 2 and 2.5 years after the date of ending of participation, unless the former participant has started the procedure in transferring the pension capital to the pension fund or insurance company of the new employer as referred to in paragraph 3, prior to the period of 2 and 2.5 years. If the pension date is earlier than 2 years after the date of ending of participation, the lump sum-payment will take place within 6 months after the pension date. In case that the former participant deceases prior to retirement and the pension capital must be 12

13 used to buy a partner pension and/or an orphan s pension as referred to in article 6, paragraph 5, the pension capital in the pension account can be paid to the partner and/or orphan as a lump sum payment if the partner pension and/or orphan s pension on an annual basis on the date of commencement is less than the maximum according to article 66 of the Pension Act. The lumpsum payment is subject to withholding of any statutory tax or premiums payable. This lumpsum payment will take place within six months after the former participant deceases. After payment of the lump sum, the fund is fully discharged from all its obligations. Paragraph 3 The pension capital can be transferred to the pension provider which provides the pension plan of the new employer of the former participant, if and insofar the fund is required to do this according to the Pension Act. The value transfer will take place with due observance of that stipulated in the Pension Act. After the value transfer, the fund is fully discharged from all its obligations. If employment ends (partially) the participation in the pension plan continues (partially) if the following applies: a. As long as the participant receives a WIA benefit based on the bracket 65% to 100% disability, the applicable employer's contribution based on attachment 2 plus the participant s contribution based on attachment 2 is added to the pension account annually. Furthermore, a partner pension is insured that will be determined by the participation period, as meant in article 6, paragraph 2, and multiplied by 1.16% of the pension base. Article 6, paragraph 3, consistently applies. Furthermore an orphans pension is insured that will be determined as 20% of the partner pension. Article 6, paragraph 3, consistently applies. d. As long as the participant receives a WIA benefit based on the bracket 45% to 65% disability, half of the applicable employer's contribution based on attachment 2 plus half of the participant s contribution based on attachment 2 is added to the pension account annually. Furthermore, a partner pension is insured that will be determined by the participation period, as meant in article 6, paragraph 2, and multiplied by 0.58% of the pension base. Article 6, paragraph 3, consistently applies. e. The (former) participant who receives a WIA benefit based on disability of less than 45% will no longer receive a contribution from the employer nor from the fund. In case of termination of employment, paragraph 1, 2 and 3 will apply. In case of partial termination of employment, article 8 will apply. The pension base is equal to the pension base of the participant immediately prior to the first day of illness. The waiver of contribution and insurances for participants unfit for work under the WIA will commence on the first day of the month in which the (former) participant is entitled to the WIA benefit. The waiver of contribution and insurances will end on the last day of the month preceding the month in which the participant no longer receives the WIA benefit, deceases, or retires but ultimately till he/she reaches the AOW-age. An increase or decrease in the degree of disability will lead to an increase or decrease of waiver of contribution and insurances accordingly. To cover the rights to a waiver of contribution and insurances because of disability arising from this article, insurance has been taken out by the fund at an insurance company. Article 12 paragraph 10 applies consistently. 13

14 Paragraph 5 For the purposes of paragraph 4, the participant is considered to be disabled for this plan if the following conditions are met: * the qualifying period for the WIA benefit as mentioned in paragraph 4 started during employment with the employer; * he/she became disabled for the WIA during or after employment with the employer; * he/she is entitled to a disability benefit under the WIA. The aforementioned conditions also apply for a participant that already was disabled at the start of participation but only for the increase of his existing disability and in accordance with the following conditions. For the purposes of paragraph 4, the fund applies the Dutch covenant on disability pension and waiver of contribution because of disability (Convenant over dekking van arbeidsongeschiktheidspensioen en premievrijstelling in pensioenregelingen van 23 januari 2013). This implies amongst others that any waiver of contribution and insurances in case of disability: a. will only be the case above the disability degree that already existed at the time on entering employment with the employer if the day from which the previous employer continues to pay the salary to the employee, pursuant to book 7, section 629 of the Civil Code lies prior to the time on entering employment with the employer. If however the participant is in the qualifying period of the WIA at the time of entering employment with the employer and is declared unfit for work for 35% or less at the end of the qualifying period, complete coverage in case of disability exists if the participant is not declared unfit for work for more than 35% within four weeks after the end of the aforementioned qualifying period; b. is maximized to the degree of disability that existed at the end of employment. If, at the end of employment the qualifying period of the WIA had not yet ended, the pension accrual is based on the degree of disability as it applies when the legal disability benefit is first granted. For the member, who s qualifying period of the WIA had not ended at the end of employment and whose degree of disability is declared less than 35% at the end of the qualifying period of the WIA, but who within four weeks receives a WIA disability benefit, the pension accrual in case of disability is also based on the degree of disability as it applies when the legal disability benefit is first granted. If the participant is declared more than 35% disabled after four weeks (or if the legal disability benefit revives after more than four weeks) there is no entitlement to coverage in case of disability. Paragraph 6 In case of part-time employment prior to disablement, the employer s contribution mentioned in attachment 2 and the increase in the pension base as mentioned in the former paragraph are multiplied by the part-time factor as applicable immediately prior to the first day of illness. Paragraph 7 The stipulations of paragraph 4 also apply to participants working abroad and who are not insured under the WIA, corresponding to the insurance company s conditions. These are available for inspection at the fund. Paragraph 8 In case of parental leave as meant in article 6:1 of the Employment and Care Act (Wet arbeid en zorg), participation in the pension plan is ended in accordance to the stipulations of this article unless the participant informs the employer in writing that he/she wants to keep on paying his/her own contribution of at least 4% of the pension base. The method of payment in 14

15 this case will be further agreed by the participant, the employer and the fund. The employer s contribution as meant in attachment 2 will lapse. The (former) participant retains his/her right to partner s, orphan s and/or disability pension as meant in article 3 paragraphs 5 and 6 during the period of parental leave. The pension base is equal to the pension base of the participant immediately prior to the first day of parental leave. Participation revives immediately after the parental leave is terminated. Paragraph 9 In case the participant will join a period of leave without pay, participation in the pension plan is ended in accordance to the stipulations of this article. The former participant retains his/her right to partner s, orphan s and/or disability pension as meant in article 3 paragraphs 5 and 6, during the period of unpaid leave but no longer than 18 months. The pension base is equal to the pension base of the participant immediately prior to the first day of unpaid leave. Partner s and orphan s pension will be determined on the basis of article 6, paragraph 1, 2 and 3. Article 6, paragraph 4 consistently applies. Participation revives immediately after the unpaid leave is terminated. Article 10. Ending of marriage or cohabitation If the marriage of the (former) participant ends by divorce or legal separation, or when the registered partnership ends, the fund will transfer part of the (former) participant's pension capital to a separate pension account. That part is half of the pension capital accrued during the marriage or cohabitation and that can be assigned to old age pension. That part of the pension capital will be used for the purchase of old age pension from the retirement date of the (former) participant for the benefit of the former partner. In the case of pensioners already in receipt of old age pension, the amount to be conditionally allocated to the former partner is half the old age pension allocated to the period from the date of the marriage, legal partnership to the date the participation ended. The part of the old age pension for the benefit of the former partner will be paid to the former partner as long as both the pensioner as well as his/her former partner are alive. The provisions of the Act on Division of Pension Entitlements upon Divorce (Wet verevening pensioenrechten bij scheiding), Official Journal 1994, 342) will apply. The claim in this article can only be made on the fund if the divorce or legal separation is reported to the fund by means of the statutory form for this purpose within two years of its occurrence.. In case of separation in the sense of Article 1 of the Pension Act, the former partner of the (former) participant will receive an entitlement to a special partner s pension in accordance with Article 57 of the Pension Act. The fund will transfer part of the (former) participant's pension capital to a separate pension account to which the former partner is entitled and that can only be used to acquire special partner s pension in line with these regulations and with the Pension Act. In case of death of the former partner before the pension capital could be used to acquire this special partner s pension, the capital will be transferred back to the pension capital of the (former) participant. Paragraph 3 The date, on which the divorce or the registered partnership is dissolved and submitted to the registration service, is regarded as the marriage/registered partnership termination date. The date, both former partners sign and submit a written confirmation of their termination date of 15

16 cohabitation to the fund, is considered to be the cohabitation termination date according to this article. Both former partners receive a statement of the respective entitlements from the fund. Upon decease of the former partner prior to the purchase of old age pension as meant in paragraph 1, the conditional separate granted pension capital on the pension account will fall in favour of the (former) participant when still alive. If the former partner dies after the purchase as referred to article 1, payment of old age pension continues to the pensioner. The pension provider designated by the (former) participant in accordance with article 5 paragraph 4 is authorised to charge the costs of the equalisation to the (former) participant or pensioner and the (former) partner. Paragraph 5 The above does not apply in the event that it is agreed otherwise in a marriage settlement of former spouses/registered partners ( huwelijkse voorwaarden ) or in a closed written agreement because of the ending of the marriage or partnership. The fund has to be notified in accordance with the law. The agreement for deviation of the rules for a special partner s pension is only valid if the declaration of the fund is adhered to, in which is shown that this had been prepared to cover the deviant resulting pension risk. Article 11. Prohibition of any surrender or transfer of pensions With the exception of the instances stated in these regulations, pensions and pension entitlements cannot be surrendered Alienation or any other act or deed by which pensions or pension entitlements are assigned to any other person or institution are null and void, except the cases as referred to in the Pension Act. Paragraph 3 Authorization for collection of pension, in any form or under any name granted, is only permitted upon agreement of the fund, and will always be revocable. Any other condition in breach against the paragraphs above is null and void. Article 12. General conditions The fund informs the participants, the former participants, the pensioners and all other entitled persons in accordance with the Pension Act and the regulations on the basis of this act. The fund informs the participant of the main characteristics of the pension plan at the start of the participation in writing within 3 months in accordance with article 21 of the Pension Act. 16

17 Paragraph 3 The fund informs the participant within 3 months after these regulations have been changed, about this change and about his/her right to request a copy of the changed regulations. Annually the fund provides the participant with a statement of the balance of his/her pension account. Furthermore, the fund annually provides the participant with a statement, which reflects the increase of the participant s accrued pension capital over the past year (calculation A-factor) and a lowering of pension capital as a result of paragraph 12. Paragraph 5 At request of the participant, the former participant, the pensioner or any other entitled person, the fund will provide for the information as is prescribed in the Pension Act and other rules based on that act. If and so far the Pension Act allows, the fund is entitled to charge the costs in respect of providing the information. The fund has a website with information in accordance with Article 46a of the Pension Act. Paragraph 6 A former participant, pensioner or other entitled person is obliged toward the fund to submit in writing any change in his or her address to the fund as soon as possible after such change. If the fund has an outdated address of the participant, former participant, pensioner or other entitled person, the fund is authorized to charge any costs in relation to find the correct address to the participant, former participant, pensioner or other entitled person. Paragraph 7 The fund has the right to request for a written statement or any other document, which clearly indicates that he/she is alive upon his/her retirement date, as well as to determine whether or not the (former) participant or other beneficiary is entitled to a (partial) pension benefit. Paragraph 8 Those who can derive entitlements from these regulations are obliged towards the fund to submit the required documents/provide any information, which is required to execute these regulations. Paragraph 9 Consequences of not being in compliance with obligations stated in this article are at the (former) participant s own risk or at the risk of his/her survivors that are beneficiary. 0 If and as far as the fund has accommodated pension entitlements through agreements with one or more insurance companies, the respective insurance company policy terms will apply in regard to these pension entitlements. In this situation, the terms of this insurance company and the limitations set therein are considered part of these regulations. Terms of this agreement are available for (former) participants and other beneficiaries upon request. Thus, entitlements to pensions as described in these regulations will be void if and as far as the risk has not been accepted by the insurance company unless this does not comply with Article 5 Paragraphs 2 and 3 of the Pension Act. 1 The fund has the right to submit the pension plan in these regulations or any adjustments to the authorized inspector of taxes in order to assess the fiscal admissibility. The fund has the authority to accept this assessment. Should at any moment in time this plan not (no longer) be in accordance with chapter IIB and VIII of the Act on Paye taxation 1964, (retrospective) adjustments will be made making sure these regulations are in compliance. In that case 17