Re: Letter of your admission to the Heineken Pension Scheme.

Transcription

1 Pension Fund Helpdesk (071) Re: Letter of your admission to the Heineken Pension Scheme. Welcome to the Heineken Pension Fund (hereinafter referred to as HPF). You are a new member of the HPF. This letter of admission and the enclosed Heineken Pension brochure provide you with information about the Heineken Pension Scheme. We advise you to carefully read through this letter of admission and keep it in a safe place. It contains important information and is issued only once. It may be that you do not currently regard your pension as a priority, but in a little while the situation could be quite different. The Heineken Pension Fund (HPF) publishes a newsletter every three months which is sent out as an . You can subscribe to this newsletter on the HPF website: Dear, On grounds of your contract of employment as of Heineken Pension Scheme. you are a member of the You can read all about the pension scheme and the pension entitlements you will build up in the Heineken Pension brochure which consists of three layers. The most important information about your pension scheme is contained in layer 1 of the enclosed Heineken Pension brochure. Please see the HPF website: for more information on specific subjects contained in layer 1 of the Heineken Pension When looking up a specific subject you can click to layer 2 on our website to obtain additional information and to layer 3 for legal information and information concerning matters of policy. Among other matters, layer 3 sets out the Pension Scheme Rules and Regulations that apply in your particular case. An anonymised version of this letter is available in English on our website.

2 Please give special attention to layer 3 in the Pension Scheme I for Employees Commencing Employment After 31/2/2005 brochure. This brochure is a summarised and simplified version of the Pension Scheme Rules and Regulations; ultimately, the Pension Scheme Rules and Regulations is the guiding document. In this letter of admission we refer to the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure with regard to several topics. The Heineken Pension Scheme The Heineken Pension Scheme is an average pay pension scheme and is typical of a benefits agreement. This means that every year you build up pension over that year s salary. The basic principle is that after a 40-year tenure of office you are able to accrue approximately 75% of your average salary. The Heineken Pension Scheme takes into account the fact that a pension scheme supplements your state pension (AOW). Because of this, a franchise based on the AOW benefit is deducted from your pensionable salary. There is no pension accrual on the franchise. The pension that you build up will therefore reflect what you have earned on average throughout your career with Heineken, assuming of course that you will receive the full state pension. The Heineken Pension Scheme only provides pension over pensionable salaries up to 101,519. The Heineken Pension Scheme also operates a partner s and orphan s pension scheme, which is paid out in the event of your demise, plus a disability pension scheme should you become for 80% disabled or above. Retirement pension starts to be paid out on the first of the month after the month in which you reach state pension age and continues up to and including the month of your death. Partner s pension commences on the first of the month following the month in which you die and continues to be paid out up to and including the month in which your partner dies. Compensation The Financial situation of the Pension Fund, i.e. the funding ratio, is the determining factor as regards conditional compensation on the accrued pensions of active members. Compensation is financed out of the Pension Fund s return on investment, the funding ratio of the Pension Fund allowing. In any case, the funding ratio must be at least 110%. Compensation can then be granted only partially up to a certain upper limit. This limit still has to be determined. If the annual premium Heineken pays into the Pension Fund is above the legally fixed costeffective minimum premium, then compensation can be paid out of the difference. The guiding principle for compensation was changed in Up to and including 2015 the general wage movements at Heineken were taken as the guiding principle. As of 2016 the guiding principle for compensation is the increase in the CBS price-index figure. Below is a listing of the compensation that has been granted this year and over the previous three years. The accrued pensions have been increased as follows: - on 1/1/2016 by 0%. Prices increased by 0.65%. - on 1/1/2015 by 0%. Salaries increased by 2%. - on 1/1/2014 by 1.6%. Salaries increased 2%. - on 1/1/2013 by 0%. Salaries increased 2.9%.

3 Risk sharing Both you and Heineken jointly pay the pension premiums. The amount to be paid is fixed annually by Heineken. This premium is specifically for the purpose of making pension accrual in the Heineken Pension Scheme possible. If at any given time the premium is inadequate to cover this pension accrual in the Heineken Pension Scheme, Heineken will increase the premium up to the maximum level insofar as the premium has not already been raised to the maximum level. See also Question 10 in the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure. Should it still be apparent that the premium received in a given year is insufficient to implement the Pension Scheme in full then the accrual of pensions in that year will be lowered down to an accrual level that can be funded with the premium received. While the HPF strives to increase the pensions every year so that your pension will increase in line with the general price movements it cannot give any guarantees. See also Question 5 in the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure. In principle, the accrued pension remains unchanged. Future changes do not affect pensions already accrued. The HPF may only reduce accrued pensions if the funding ratio 1 of the HPF has dropped below the legally fixed minimum level during a certain period and the measures taken have failed to lead to a sufficient recovery of the funding ratio. Heineken may also reduce the contribution to the pension scheme or discontinue it completely if (radically) changed economic circumstances compel the company to do so. As soon as Heineken decides to avail itself of this right, the company is obliged to immediately inform the HPF board in writing, as well as all persons who have built up a pension or those already receiving a pension who are affected by the measure. In other words: if Heineken becomes faced with such financial problems that it is unable to pay the employer s contribution, then the employees will build up a lower pension. The pensions already built-up (and therefore also the pensions of retired persons) may not be reduced because Heineken stops to pay its contribution. Financial position of the HPF and current recovery plan The policy funding ratio of the HPF on 31 December 2015 was approximately 103.4%. In 2015 the HPF submitted a new recovery plan. The expectation of this new plan is that no compensation will be granted to either active or inactive members during the first three/four years. After that we expect there will be the possibility to grant partial compensation. Full compensation will only be feasible after a period of eight years. For the time being it is not necessary to reduce pensions in order to meet the required equity capital of 124.1% within the recovery period. The HPF website contains a summarised version of the recovery plan. You can also request the HPF for a copy of this summarised version and/or the recovery plan itself. Obligation to provide information If any changes are made to the Pension Scheme the HPF will inform you within three months. Such potential changes may result in the necessity to amend the pension rules and regulations as well as the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure. 1 The funding ratio indicates the ratio between the assets and commitments of the pension fund.

4 You can read the most recent version of the Pension Rules and Regulations and the Pensions Brochure on the HPF website. You can also request these documents from the HPF. To ensure that the rules are implemented correctly you are obliged to cooperate and, as the occasion rises, notify the HPF of any facts that affect or could affect entitlements or benefits arising from the pension scheme rules and regulations. The same obligation rests on your heirs. This relates, for instance, to: removals, marriage, divorce, cohabitation or the termination of such. It is particularly important that you furnish us with such information if you move abroad or are already living abroad. On request, the HPF will provide you with the Annual Report, the Annual Accounts, the Implementation Agreement, the Statement of Investment Principles, any information on investments which is of relevance to you, the Actuarial and Operational Memorandum of the HPF, a statement of the level of your accrued pension entitlements and (other) information which is specifically relevant in your case. In addition, on request the HPF will provide you with information on the funding ratio level, an instruction issued by the regulator and appointment of the administrator. Value transfer In many cases you have the right to transfer your pension entitlements accrued with your previous pension providers to the Heineken Pension Fund. We enclose a Request for Value Transfer Offer form (see Question 29 in the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure). Because there is only space on this form to specify one previous pension provider, if you have had more than one pension provider in the past you can request the HPF to provide you with several forms; or make copies of the form yourself and specify one previous pension provider on each form. Supplementary schemes The HPF also implements two supplementary pension schemes, i.e. the Supplementary Partner s Pension Scheme and the Supplementary Disability Pension Scheme. Accompanying this letter is a Memorandum on the Supplementary Partner s Pension Scheme. See also Questions 20, 21 and 22 in the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure. If you have a partner who has not yet reached state pension age but is on the records of the HPF, participation in this scheme will be automatic. Our administrative records show that you have a life partner. You therefore need not notify our office. If you do not wish to participate in this scheme will you please inform us within two months by returning the enclosed waiver signed by both yourself and your partner. The HPF also operates a Supplementary Disability Pension Scheme. If you take part in this scheme you are entitled to benefit amounting to10% of your salary up to a maximum of 4, gross p.a. in the case of full incapacity for work (this sum includes holiday allowance for 2016 and is determined annually). If at a later date you become partially disabled then your entitlement to supplementary disability pension is discontinued. See also Questions 23 and 24 in the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure. The Board has fixed the Supplementary Disability Pension Scheme contribution at 2.22% of this pension. This is p.a. or 8.79 p.m.

5 If you wish to become a member of this scheme you must fill in and sign the enclosed Registration Form and return it to our office. These supplementary schemes are pension schemes based on risk. This means that if you discontinue your membership in the(se) pension scheme(s), coverage immediately lapses and there is no right to any entitlement. This also applies with regard to Heineken s collective disability scheme which is part of the Heineken Pension Scheme. To conclude If you have any questions after reading this Letter of Admission or the Pension Scheme I for Employees Commencing Employment After 31/12/2005 brochure, you can always contact the HPF helpdesk on number during office hours or by pensioenfonds@heineken.nl. General information is also available on the HPF website: Yours sincerely, STICHTING HEINEKEN PENSIOENFONDS

6 MEMORANDUM ON VALUE TRANSFER AND FUNDING RATIO Due to the drop in share prices and the low interest rate, the funding ratios of pension funds have come under enormous pressure. This includes the funding ratio of the HPF. Given that the funding ratio of the HPF was below the 100% mark on 31/05/2016 the HPF may no longer agree to requests for value transfer and all such requests have been suspended. What does that mean in your case? Pension entitlements you have accrued under the pension scheme of your former employer may not be transferred to the HPF by your previous pension provider. What now? You may submit your request for a value transfer offer to the HPF as usual by using the enclosed form. As long as the funding ratio of the HPF and/or your previous pension provider is insufficient then the value transfer will be suspended. As soon as the funding ratio of the HPF is adequate to complete the value transfer the HPF will inform you in writing and contact your former pension provider. If your former pension provider s funding ratio is also adequate, then the value transfer will be made. The HPF will keep you informed as to the situation regarding the suspension (and subsequent resumption) of value transfers by the HPF on the website

7 REQUEST FOR VALUE TRANSFER OFFER Employer Heineken Nederlands Beheer BV Postbus BD ZOETERWOUDE Name of member Date of birth and sex Address Postcode and town/city Date of admission to scheme Policy number Citizen Services Number Details required for value transfer: Interested in value transfer 0 Yes 0 No Life partner 0 Yes 0 No If married/living together or have been married/lived together: Name and initials of life partner or former life partner Date of birth of life partner or former life partner Previous employer: Name Place of business Previous pension provider: Name Place of business Policy/registration number(s) The undersigned hereby declares that he or she consents to information being requested and exchanged for the purposes of the request for a value transfer offer, making use of his/her Citizen Services Number. Place Date Signature

8 MEMORANDUM ON SUPPLEMENTARY PARTNER S PENSION SCHEME Dear, NUMBER: The HPF operates a Supplementary Partner s Pension Scheme to cover the Surviving Dependants Act shortfall, the details of which are set out in the rules of this scheme. Membership of this scheme is not obligatory. Please read through this memorandum carefully and contact us if you have any queries or remarks. What is the Surviving Dependants Act shortfall? The AWW (Widows and Orphans Benefits Act) was replaced by the Anw (Surviving Dependants Act) in This act strongly limits the group of surviving relatives entitled to receive benefit; a means test is also included to determine the amount of benefit. This reduction in state care is referred to as the Anw shortfall. How much of the Anw shortfall is covered? The supplementary partner s pension to cover the Anw shortfall is 13, p.a. including holiday allowance (2016). Supplementary partner s pension is paid to your partner upon your demise (your partner must not have reached state pension age on that date). Payment of this partner s pension is made up to the date on which your partner reaches state pension age. How high is the contribution? The Board has fixed the contribution for supplementary partner s pension at 3.8% of this pension. This is p.a. or p.m. This contribution is determined on the basis of the current level of participation. Depending on the outcome of this scheme the Board may decide to adjust the contribution. The contribution due will be deducted from your gross salary. In terms of net value, the contribution is therefore less than the above amount. For the sake of completeness we must point out that this contribution is due up to the date on which your partner reaches state pension age. Participation in this scheme It has been decided that new Heineken employees who have a life partner (either by marriage, registered partnership or cohabitation) below the state pension age and registered with the HPF are automatically members. Our records show that you have a life partner and therefore you need not register for this scheme. Consequently we have instructed the salary administration department to deduct the contribution due from your salary starting on 01/07/2003. Should you not wish to participate in this scheme may we request that you return the enclosed waiver, signed by both yourself and your partner, within two months of the date of this letter; all deducted contributions will subsequently be refunded. Should we receive the waiver later than two months after the date of this letter then a refund is not possible and the insurance will be discontinued on the first of the month following the month in which the waiver is received.

9 Whether you participate in this scheme or not is obviously a personal choice. To help you decide, a diagram is appended to this memorandum you can use to check whether your partner will be faced with an Anw shortfall after your demise. In any event, we advise you to opt for the Anw shortfall coverage if your partner was born after 31 December If you do not wish to participate, the waiver must be completed and signed and be received by the Pension Fund within two months of the date of this letter at latest.

10 Appendix to the Supplementary Partner s Pension Memorandum Will your partner be faced with an Anw shortfall? The diagram below can be used to check whether your partner will be faced with an Anw shortfall after your demise: Was your partner born after 31 December 1949? No Yes Is your partner unfit for work to an extent greater than 45%? Yes No Does your partner look after children under 18? Yes Does your partner have income from employment or his or her own business or unemployment benefit, sickness benefit, invalidity benefit or early retirement benefit? No Yes Yes Does your partner have income in excess of 2, per month? No No Your partner would not receive surviving dependant s benefit Your partner would receive partial surviving dependant s benefit Your partner would receive full surviving dependant s benefit Supplementary insurance is advised If your partner receives no or only partial surviving dependant s allowance, there is question of a Surviving Dependants Act shortfall. Partial surviving dependant s allowance arises if your partner has an income. Your partner also has a Surviving Dependants Act shortfall if she/he was born after 1949 and has children under the age of 18. In the first instance full or partial surviving dependant s allowance will be obtained, but this will cease as soon as the youngest child reaches the age of 18.

11 WAIVER Of Supplementary Partner s Pension Scheme The undersigned, Name of policyholder : Date of birth : policy No.: Address : Town/City : Partner s name : Date of birth : Considering: that the Supplementary Partner s Pension Scheme is in force at the employer, Heineken Nederlands Beheer BV; that the Supplementary Partner s Pension Scheme will be implemented by Stichting Heineken Pensioenfonds and is set out in the Rules of the Supplementary Partner s Pension Scheme; that the party insured is eligible for participation in this scheme; declares 1. that the party insured has a partner who by virtue of participation in the Supplementary Partner s Pension Scheme can become eligible for pension payments pursuant to that scheme; 2. that both parties have taken cognisance of the contents of the Rules of the Supplementary Partner s Pension Scheme and that they have understood those rules; 3. that both parties are therefore aware of the entitlements arising from this scheme as well as the inextricably interrelated obligations; 4. that the insured person has been given the opportunity to be admitted to this scheme by Heineken Nederlands Beheer BV and the pension fund; 5. that both parties have decided not to participate in the Supplementary Partner s Pension Scheme; 6. that further to this decision neither the insured party nor surviving relatives may exercise any claims to pensions under the Supplementary Partner s Pension Scheme. Town/City: Policyholder s signature Date: Partner s signature N.B. Your participation in the Partner s Pension Scheme will be continued should your partner fail to co-sign this waiver.

12 REGISTRATION FORM SUPPLEMENTARY DISABILITY PENSION SCHEME The undersigned, Name: policy no.: Address: Postcode and town/city: Date of birth: Considering: that the Supplementary Disability Pension Scheme is in force at the employer, i.e. Heineken Nederlands Beheer BV; that the Supplementary Disability Pension Scheme, as laid down in the Supplementary Disability Pension Scheme Rules, will be implemented by Stichting Heineken Pensioenfonds; that the insured person qualifies for participation in said scheme; declares: 1. that the insured wishes to join the Supplementary Disability Pension Scheme of Heineken Nederlands Beheer BV, which scheme is administered by Stichting Heineken Pensioenfonds and described in the Supplementary Disability Pension Scheme Rules; 2. that the insured has taken note of and understood the contents of the Supplementary Disability Pension Scheme as set out in the rules of the Stichting Heineken Pensioenfonds; 3. that the insured is therefore aware of the rights arising under the terms of this scheme and the obligations that form an integral part thereof. Place: Date: Signature: