1. What does our pension scheme give you?

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1 Welcome to Pensioenfonds PGB! You are currently accruing a pension with us. You do this through your employer Jacobs Douwe Egberts. In this Pension you can read about the arrangements that have been made for your pension in Read more about your pension in 3 steps The Pension is made up of 3 layers. This is layer 2. It explains in 30 minutes what pension arrangements have been made for you. Do you wish to spend just 5 minutes to learn about the arrangements? Then go to layer 1. Do you need legal information on your pension? Then go to layer 3. You can find layer 1 and 3 at (only in Dutch). View your personal pension information at In this Pension you will find the details of your pension scheme. At you will find information on your personal pension situation. You can also take a look at your Uniform Pension Overview. You receive this overview once a year. At you can find the pensions that you have accrued with all your employers. 1. What does our pension scheme give you? Retirement pension Via your employer you accrue a capital sum with us for your old age: the retirement pension. This pension supplements the AOW benefit. This is the pension benefit you receive later from the state. Your employer has a pension scheme whereby you know in advance how much pension you will receive later. This is referred to as a defined benefit agreement. How much pension you will receive depends on 3 things. Your salary, the period of your participation in the pension scheme and the characteristics of the pension scheme. We calculate your pension on the basis of the gross salary that you receive every year. This is referred to as average salary. As long as you stay with your current employer, you accrue a bit of pension with us each year. All these bits together constitute your ultimate pension. Ordinarily you retire in the month in which you receive AOW pension for the first time. You accrue pension over your gross salary up to 105,075. You do not accrue any pension over a certain portion of your salary. This is because you will also receive AOW from the state later. For this reason we deduct 13,731 from your salary. This is called the state pension offset. The amount that is left is referred to as the pensionable earnings. Each year, you accrue up to a maximum of % pension over the pensionable earnings. Read more about your pension accrual at You accrue retirement pension under an average salary scheme. Model calculation Let s assume: an employee works full-time and earns 25,000 gross per year. His pension scheme has a state pension offset of 13,000 and an accrual percentage of 1.5%. His pension accrual will be as follows: His gross salary is: 25,000 The amount over which he does not accrue pension is: 13,000 -/- He accrues pension over: 12,000 His accrual percentage is a maximum of: 1.5% x Annually, he accrues the following pension: Let's assume: he has been employed by your employer for 10 years and his salary and state pension offset remained unchanged during this period. From age 67, he will receive 1, pension. This amount is gross per year. This means that tax and premiums are still to be deducted on retirement. It is possible that his pension will be increased because of a rise in prices. This is called a supplement. If you work part-time you can calculate your pensionable earnings by first calculating your salary on a full-time basis. From this you deduct the state pension offset. You accrue pension over this amount pro rata. This means that if you work half-time, you get half the pension. Want to know your total pension? Look in the pension planner at or at Layer 2- page 1 of 9

2 1. What does our pension scheme give you? Partner's pension You also have a pension for your partner with us: the partner's pension. Your partner will receive this when you die. Each month, for the remainder of his or her life. By partner, we refer to: the person to whom you are married or with whom you have entered into a registered partnership; the person with whom you are living together and who has been registered with us as partner. Look under when do you need to take action?' for more information on registering your partner with us. How much pension your partner will receive from us depends on your situation: You die while still employed with your current employer. Your partner s will receive 70% of the retirement pension that you could have accrued until your retirement date. You die while you are no longer employed with your current employer because you have switched employers or are retired. Your partner will receive 70% of the retirement pension you have accrued with us. Please note: What if you get a (new) partner after you retired? In that case this partner will not receive a partner's pension from us when you die. ANW shortfall pension for your partner The ANW is a benefit under the Surviving Dependants Act that you receive from the state. This benefit is intended for your partner in the event you die. Only few people are entitled to this form of benefit. This is because there is an income limit. Your partner will receive this benefit if he or she meets one of these conditions: Your partner does not yet receive AOW, Your partner takes care of one or more minor children, Your partner is disabled for more than 45%. Do you want to know more about the ANW you receive from the state? Go to the website of the Social Insurance Bank (Sociale Verzekeringsbank): ANW Plus insurance Your employer has taken out ANW Plus insurance with us. This means that in addition to the partner s pension, your partner may receive 5,100 gross per year from us. Your partner will only receive this amount if you die while you are still employed with your current employer and do not yet receive AOW. You can also insure extra ANW pension with us for your partner. Go to for more information. Orphan's pension You also have a pension with us for your children: the orphan's pension. Your children will receive this when you die. Each month, until they turn 18. Or no later than age 27, if they are going to college or university or follow professional education. How much pension your children will receive from us depends on your situation: You die while still employed with your current employer. Your children each receive 14% of the retirement pension that you could have accrued until your retirement date. You die while you are no longer employed with your current employer because you have switched employers or are retired. Your children each receive 14% of the retirement pension that you have accrued with us. If you and your partner die, your children each receive 28% of the retirement pension. Please note: We pay the orphan's pension for up to five children. If you have more children, we will divide the orphan s pension over your children. Non-contributory continuation of your pension accrual in the event of disability If you are disabled for more than 35%, you can continue to partially accrue pension with us. For the number of hours that you work, you and your employer pay together. For the number of hours you are disabled, we pay. We will do this until you retire or until you are less than 35% disabled again. Pension regulations Would you like to know more about your pension? Look at the pension regulations. These contain the arrangements the employer has made on your behalf. At you can view, download and print the pension regulations. If you prefer them in hard copy, please send us an via ks@pensioenfondspgb.nl or call us on Layer 2- page 2 of 9

3 2. What does our pension scheme not give you? You do not accrue pension over your salary in excess of 105,075. Does your full-time gross annual salary in 2018 exceed 105,075? In that case you do not accrue pension over the salary above this amount with us for yourself and your partner. You do not receive a disability pension Are you disabled? In that case you do not receive a disability benefit from us. Possibly you will receive a benefit from the UWV (the Employee Insurance Agency). Go to for more information. 3. How do you accrue pension? A. The General Old Age Pensions Act (AOW) The AOW is a pension from the state. Everyone who is a resident in or works in the Netherlands, is entitled to this benefit. The state is gradually increasing the AOW age. When your AOW commences, can be found on the website of the Social Insurance Bank (Sociale Verzekeringsbank): You can also find the current AOW amounts here. Please note: If you lived or worked outside the Netherlands for some time, you may receive less AOW. B. The pension you accrue via your employment The pension that you accrue via your employer will supplement your AOW. In this Pension you can find the arrangements your employer has made for your pension. In your Uniform Pension Overview you can find how much pension you have accrued so far. At you can find the total pension that you have accrued with all your employers. At you can find your current pension status with us. You can also view how much pension you can receive later. In addition, you can make your own choices for your pension here. Please note: Have you been employed with your employer for less than one year? In that case you may not receive your Uniform Pension Overview yet. Also, the pension that you are accruing via your current employer may not yet be found at At you fill in your salary yourself. This way you can find your current pension status with us. C. The pension supplement that you arrange yourself You can also make your own arrangements for extra pension. For example via an annuity, savings or investments. Or byaccruing extra pension with us. Go to for more information. You accrue retirement pension under an average salary scheme As long as you work for your current employer, you accrue a bit of pension with us each year. This is referred to as average salary. We calculate this on the basis of the gross salary that you receive every year. All these bits together ultimately constitute your pension. You accrue pension over your gross salary up to 105,075. You do not accrue any pension over a portion of your salary. This is because you will also receive AOW from the state later. For this reason we deduct 13,731 from your salary. This is called the state pension offset. The amount that is left is referred to as the pensionable earnings. Each year, you accrue up to a maximum of % pension. The pension that you receive later is made up of all these bits together. It is possible that we increase your pension later because of a rise in prices. This is referred to as the supplement. Note: Together with your employer you pay a fixed premium for your pension. This way you build up a maximum of % each year. If the fixed premium is less than the costs of your pension, you may build up less pension in that year. If you want to know what your employer has agreed with us about this, check out the pension regulations in layer 3. Layer 2- page 3 of 9

4 3. How do you accrue pension? Accrual percentage You accrue pension over your gross salary up to When you retire, you will receive AOW from the state. For this reason you do not accrue any pension over a portion of your salary. We deduct 13,731 from your salary. This is referred to as the state pension offset. The amount that is left is referred to as the pensionable earnings. Each year, you accrue % pension over the pensionable earnings. This is called the accrual percentage. Model calculation Let s assume: an employee works full-time and earns 25,000 gross per year. His pension scheme has a state pension offset of 13,000 and an accrual percentage of 1.5%. His pension accrual will be as follows: His gross salary is: 25,000 The amount over which he does not accrue pension is: 13,000 -/- He accrues pension over: 12,000 His accrual percentage is: 1.5% x Annually, he accrues the following pension: Let's assume: he has been employed by his employer for 10 years and his salary and state pension offset have remained unchanged during this period. From age 67, he will receive 1, pension. This amount is gross per year. This means that tax and premiums are still to be deducted on retirement. It is possible that his pension will be increased because of a rise in prices. This is called a supplement. If you work part-time you can calculate your pensionable earnings by first calculating your salary on a full-time basis. From this you deduct the state pension offset. You accrue pension over this amount pro rata. This means that if you work half-time, you get half the pension. Note: Your employer pay a fixed premium to us each year. If the premium paid is higher than the costs for your pension, we will set aside the difference between the premium paid and the costs in a premium deposit. If the premium paid is less than the costs for your pension, your employer will use the money from the premium deposit to supplement the premium. If there is not enough money in the premium deposit for this, this may have consequences for the accrual of your pension. If you want to know more about this, check out the pension regulations in layer 3. You and your employer pay for your pension together You and your employer pay for your pension together. The contribution is a percentage of the portion of your salary over which you accrue pension: the pensionable earnings. Your employer pays 26.15% and you pay 2.0%. On your salary slip you can find how much this is. 4. What choices can you make yourself? Transfer of accrued benefits If you get a new job with another employer and consequently a new pension provider, you no longer accrue any pension with us. You can transfer the pension you accrued with us to your new pension provider. This is referred to as a transfer of accrued benefits. The other way round is also possible, of course. The pension that you received with your previous pension provider can be transferred to us. You arrange the transfer of accrued benefits via your new pension provider. If you still work for the same employer, but your employer has now placed your pension with us, it may not be possible to transfer the pension you accrued with this employer to us. Please contact us if you want more information about this. Whether a transfer of accrued benefits is to your advantage depends on the financial situation of your previous and your new pension provider. And on the characteristics of your previous and new pension scheme. You are not obliged to transfer your pension to your new pension provider. You can also leave your pension with your previous pension provider until you retire. You no longer pay any contributions for this pension. You continue your accrual of pension at your new pension provider. If the funding ratio of a pension fund is lower than 100%, this pension fund is not allowed to cooperate in a transfer of accrued benefits. This is regulated this way in the Pensions Act. Layer 2- page 4 of 9

5 4. What choices can you make yourself? (continuation) Accruing extra pension The law allows you to accrue an amount of pension each year free of tax. This is referred to as a tax allowance ( fiscale ruimte ). It can be that you do not use your full allowance in any year. In that case you may accrue extra pension with us. You can do this via our PGB Pension Plus Scheme (PGB-Pensioen Plusregeling). This differs from accruing pension through your employer, for via our scheme for extra pension you accrue a capital sum. The ultimate level of this capital sum depends on our investment results. You use this capital sum to purchase extra pension. Therefore you do not know in advance how much extra pension you receive for it. You pay the contribution for this extra pension via your employer. At you can find more information. You can also apply for this there. ANW shortfall pension for your partner The ANW is a benefit from the state. This benefit is intended for your partner in the event you die. Only few people are entitled to this form of benefit. This is because for this benefit the Social Insurance Bank (Sociale Verzekeringsbank) will take into account your partner s income. Your employer has taken out an ANW Plus insurance for you. This means that in addition to the partner s pension, your partner can receive 5,100 gross per year from us. You can also insure an extra ANW shortfall pension for your partner yourself. Your partner will receive this pension on top of the partner s pension. Your partner will only receive this ANW shortfall pension if: you die while still employed at your current employer; and your partner is not yet entitled to AOW. For more information go to and Exchanging partner's pension for retirement pension U can opt to exchange your partner s pension for a higher retirement pension. Because your partner may have a good pension himself or herself. Or you do not have a partner, or no longer. If you opt for this, you will receive more retirement pension from us. But your partner will not receive any partner s pension when you die. Therefore your partner must consent to your choice. You make this choice when you apply for your pension. Please note: Once your pension has commenced, you cannot reconsider your choice. For more information, go to and Early retirement or late retirement Under the standard procedure, you retire in the month in which you receive the AOW benefit for the first time. However, you can opt to retire earlier or later. Early retirement You can retire from the age of 55. This is only possible if you are no longer employed by your employer. You will receive less pension from us. This is because you stop accruing pension prematurely. And because you receive pension from us over a longer period. Please note: You only receive AOW from the state from your AOW age. Go to to see when your AOW commences. Late retirement You can also retire later. This is possible up to 5 years after your AOW has started. This is only possible if you are still employed by your employer. In that case you will receive more pension from us. This is because you receive pension from us over a shorter period. However, from the moment you receive AOW, you no longer accrue any pension with us. Part-time pension You can also opt to retire part-time and continue to work part-time. You continue to accrue pension capital over the hours that you work. That is to say, as long as you don t receive AOW. Because once you receive AOW, you no longer accrue any pension with us. You make these choices when you apply for your pension. In the pension regulations you can find the conditions for early, late or part-time employment. For more information go to and Layer 2- page 5 of 9

6 4. What choices can you make yourself? (continuation) Do you wish to start with a higher or lower pension? Maybe you are faced with higher costs during the first years of your retirement. In that case you can opt to receive more pension during the first 5 or 10 years, and subsequently less. After these 5 or 10 years you receive less pension than your Uniform Pension Overview shows. Or maybe you have more income during the first years following your retirement. In that case you can opt to receive less pension during the first 5 years, and subsequently more. You will then receive more retirement pension than your Uniform Pension Overview states. You make this choice when you apply for your pension. Please note: Once your pension has commenced, you cannot reconsider your choice. For more information, go to or 5. How secure is your pension? What risks are there? Your pension is accrued and paid out over a long period. Much can happen during this period. There are risks that may cause a financial deficit. This may have consequences for the level of your pension. Longevity An example of such change is the higher life expectancy of the Dutch population. It has risen more quickly than expected. If people live longer, the pensions also need to be paid out over a longer period of time. More money will then be needed to pay out the pensions than initially thought. Interest rates Interest rates have an impact on the value of pensions. We try to estimate how much money is needed now to be able to pay all the pensions in the future. We calculate this on the basis of the current interest rates. The lower the interest rate, the more money is needed now to be able to pay out these pensions in the future. If the interest rate is low, the pensions are therefore more expensive. Investments We invest part of the pension capital in order to have sufficient funds to pay out the pensions in the future. Sometimes the investment results are disappointing. Therefore we spread the investments across various asset classes. If we make a loss on one investment, a good return on another investment can make up for this. Unfortunately it is possible that we have a negative return. We hedge the risks of our investments. However, this involves costs. Risk management There are more risks we need to take into account in order to protect your pension as much as possible. For example, we want to ensure that the purchasing power of your pension is maintained. And that the chances of having to reduce your pension are kept to the minimum. This requires us to take measures. These measures together are our risk management. There are also internal and external supervisors. They assess our policies and how our policies are implemented. If you would like more information about this, please refer to our annual report. It can be found at Layer 2- page 6 of 9

7 5. How secure is your pension? (continuation) Index-linked pension Each year, money loses its value a little. The same amount of money buys you a little less this year compared to last year. This is called inflation. We can increase your pension if we have enough money to do so. Such increase is referred to as a supplement. If we can increase your pension, it will develop in line with the general rise in prices. This is called an index-linked pension. If the financial situation proves difficult, we may not be able to increase your pension or only partially. In that case your pension will become worth a little less. If this situation turns for the better again, maybe we will be able to increase your pension a little extra. We can only increase your pension if we have enough money to do so. For this we will consider 2 things. Namely how much money we have now and how much we need to pay out on pension in the future. The relationship between these 2 amounts is referred to as the funding ratio. The funding ratio needs to be higher than 110%. Then we can increase your pension in little steps up to a maximum of 2%. If our funding ratio is higher than 127%, maybe we can increase your pension a little extra by 1%. And undo any reductions we have made. Increases in the last ten years Increase of pension Rise in prices % 1.38% % 0.19% % 0.71% % 0.96% % 2.81% % 2.26% % 2.96% % 1.49% % 0.28% % 3.22% Source: Consumer price index (August - August) all households, established by Statistics Netherlands. If there is a deficit Sometimes we face financial headwind. If this occurs, we may not be able to pay the pensions in full in the long term. We will then carefully consider what the best solution is. We can, for example, stop increasing the pensions or decrease the pension accrual. Or we have to decide to lower your pension. We will do so if our funding ratio has been below about 104.1% for a period of 5 years. Or if we expect that it will take more than 10 years before our funding ratio will again be higher than approximately 122%. Please note: these percentages are rounded off and may change. Recovery plan Our funding ratio is lower than 122%. For this reason we have a recovery plan in place. This plan sets out how we will ensure that our funding ratio will end up higher than 122% again. You can find the recovery plan at 6. What costs do we incur? Costs As we manage your pensions and invest your capital, we naturally incur costs. Our aim is to keep the costs we incur for doing this as low as possible. There are two types of costs: Pension management costs These are all the costs we incur for administering the pensions and providing information to participants about their pensions. These costs also include the costs of having a Board of Trustees. In 2017, these costs worked out at 175 for each participant. Asset management costs These are all the costs we incur for investing your pension money. In 2017, these costs were equal to 0.44% of the invested assets. Layer 2- page 7 of 9

8 7. When do you need to take action? If you change pension providers If you get a new job with another employer and consequently a new pension provider, you no longer accrue any pension with us. You can transfer the pension you accrued with us to your new pension provider. This is referred to as a transfer of accrued benefits. The other way round is also possible, of course. The pension that you receive with your previous pension provider can be transferred to us. You arrange the transfer of accrued benefits via your new pension provider. If you have not changed employer, but your employer has placed your pension with us, it may not be possible to transfer the pension you accrued with this employer to us. Please contact us if you wish more information about this. Whether a transfer of accrued benefits is to your advantage depends on the financial situation of your previous and your new pension provider. And on the characteristics of your previous and new pension scheme. You are not obliged to transfer your pension to your new pension provider. You can also leave your pension with your previous pension provider until you retire. You no longer pay any contributions for this pension. You continue your accrual of pension at your new pension provider. If the funding ratio of a pension fund is lower than 100%, this pension fund is not allowed to cooperate in a transfer of accrued benefits. This is regulated this way in the Pensions Act. If you become disabled If you are disabled for more than 35%, you can continue to (partially) accrue pension with us. For the number of hours that you work, you and your employer pay together. For the number of hours you are disabled, we pay. We will do this until you retire or until you are less than 35% disabled again. You do not receive any disability benefit from us. You do not need to notify us that you are disabled. The UWV (Employee Insurance Agency) will do this for you. However, what you can do is think about your pension. If you are disabled, you may accrue less pension than if you worked full-time. It can therefore be a good idea to accrue extra pension yourself. For more information go to or If you get married or enter into a registered partnership Are you getting married or are you entering into a registered partnership? If this is the case, the municipality will notify us. Therefore you do not need to do this yourself. However, what you can do is think about the pension for your partner. Look at What choices can you make yourself? for more information or go to or If you start living together If you start living together, the municipality will not notify us. Therefore we do not know who your partner is. You can register your partner with us yourself. When you do this, your partner will receive a partner's pension from us when you die. If you do not register your partner with us, he or she will not receive a partner's pension from us when you die. Do you want to register your partner with us? This is subject to the following conditions: You are living at the same address and are both registered at this address with the municipality. You have shared a household for a period of 6 months or more. You and your partner are not married and have not entered into a registered partnership either. You and your partner are not: parent and child, grandparent and grandchild or parent-in-law and son/ daughter-in-law. You can register your partner with us via Has your partner been registered with us? If so, you may think about insuring extra partner's pension and extra ANW shortfall pension. Layer 2- page 8 of 9

9 7. When do you need to take action? (continuation) In you get a divorce or terminate your (registered) partnership If you get a divorce, you must also divide your pension. Half of the retirement pension that you accrued during your marriage or registered partnership, is for your ex-partner. Your ex-partner is also entitled to the partner's pension you built up until your divorce. This has been arranged by law. We must be notified of your divorce and the arrangements made within 2 years. We will then pay out your retirement pension in accordance with the division between you and your ex-partner. Were you living together and are you and your partner getting a divorce? In that case your ex-partner is entitled to part of your retirement pension. When you die your ex-partner receives the partner's pension you accrued until your divorce. This has been arranged by law. This only applies if your partner had been registered with us. Maybe your ex-partner does not want any retirement pension and/or partner's pension from you. In that case he or she will waive this portion. You and your partner are required to record this in the divorce agreement. And we must be notified of this. Do you want to divide your retirement pension and/or partner's pension differently? If you do, follow these steps: Step 1: Arrange with your ex-partner about how you wish to divide the pension. Step 2: Lay down these arrangements in a divorce agreement with your lawyer or civil-law notary. Step 3: If so, these arrangements must be passed on to us within 2 years. For more information go to and If you move abroad It is important that we are notified of your new address. We must also be notified if you get married, start living together or enter into a registered partnership, for we do not receive a notification of these events from the municipality. You can pass on to us any changes via Or send us an or letter with your new data. If you become unemployed Have you lost your job? You do not need to notify us that you have lost your job. The UWV (Employee Insurance Agency) will do this for you. If you are unemployed, you no longer accrue any pension with us. List for yourself what the consequences are, for your own pension and the pension for your partner and children. This way you avoid nasty surprises. Therefore you should consider the following questions: Do you wish to use part of your retirement pension for extra partner's pension? In that case you will receive less retirement pension. But your partner will receive more pension from us when you die. Do you wish to accrue pension with us yourself because you do not accrue pension elsewhere? This is possible for up to 3 years. It is more expensive than pension accrual via your employer, for you also pay the employer's share of the contribution. If you want this, please let us know within 9 months after your resignation or dismissal. See the pension regulations and for more information and the conditions. Check at least once a year what your pension situation is. This way you avoid nasty surprises. It will take you 15 minutes at most. You can do this when you receive your Uniform Pension Overview, for example. At you can see how much pension you have accrued so far with PGB Pension Fund. You can also see an example of the net pension that you can receive each month in the future. In addition, you can make your own choices for your pension. At you can see how much pension you have accrued with all your employers. Do you have any questions? Would you like to know more about your pension? If so, please do not hesitate to contact us. We will be pleased to help you. ks@pensioenfondspgb.nl telephone: internet: Layer 2- page 9 of 9