CLA for NN. 1 Januari december 2018

Transcription

1 CLA for NN 1 Januari december 2018

2 Contents Statement 4 Foreword 5 1 My Employment Agreement Target group Term of validity CLA Employment agreement Termination of your employment Future laws and regulations Monitoring and interpreting the CLA 8 2 My Employment Relationship Employment relationship based on equality CLA and HR schemes Disputes Unacceptable conduct 10 3 My Time Working hours Work pattern Annual hours system Working from any location at any time (NN way of working) Overtime compensation Public holidays Leave hours Other types of leave Staying at work with vitality 14 4 My Performance Targets Dialogue Performance management evolves 17 5 My Remuneration Remuneration system Job grading and benchmarks Fixed remuneration Variable remuneration Other forms of remuneration Separate remuneration policies Coherent remuneration policy Personal Choice Budget options Specific allowances 24 6 My Development Career plan A day for Taking the initiative Inspiration sessions Facilities for professional development Feedback Internal career fair External labour market 28 2

3 6.8 Gradual departure from NN Strategic Personnel Planning 28 7 My Health Vitality Perceived workload Informal family care Illness 30 8 My Pension Pension plans Basic Pension Plan Pension accrual in the event of occupational disability Pension contribution Supplemental IVA Pension ANW-gap insurance 38 9 My Organisation Change processes External staff Transitional regulation for employers contribution to collective health care (ZKV) for pensioners Transitional regulation for household help for pensioners Third year of State unemployment benefits (WW) My Trade Union Role of the trade unions at NN Information and membership Disclosure and confidentiality Facilities Protection Employers contribution Funding HR schemes Our Social Responsibility Ethics Participation of people with partial incapacity to work Sustainability 46 Appendix I Definitions 47 Appendix 2 Salary scales 49 3

4 Statement The undersigned, NN Insurance Personeel B.V. NNIP Personeel B.V. hereinafter referred to as: NN and FNV Finance (a unit within FNV), having its registered office in Amsterdam CNV Vakmensen, having its registered office in Utrecht De Unie, having its registered office in Culemborg hereinafter referred to as: the trade unions, and hereinafter jointly referred to as: the CLA parties have concluded the following Collective Labour Agreement (CLA), which is to be considered effective as from 1 January Disclaimer: This document is an English translation of the Dutch document. If there are any differences between the English and Dutch version of this document the Dutch version is leading. Vakmensen 4

5 Foreword The terms agreed for the CLA by and between NN and the trade unions are consistent with the course set out in 2011: a CLA that provides frameworks, alongside specific terms, to allow you and your manager to openly discuss and come to appropriate agreements with one another, thus ensuring that employment relationships are based on equality. The trade unions and NN acknowledge the ongoing importance for everyone to work on their future and enjoy doing their jobs. NN also wants to be an attractive party for current and future colleagues. The new CLA underlines that investing in professional development is essential to better prepare you for the ongoing changes that you will be facing. Investing in professional development and staying up to date are ongoing necessities, as NN and the market are subject to continuous change. The needs and wishes of clients evolve and competition is intensifying. Highly qualified employees enhance their own strength and effectiveness as well as that of NN. In addition, being a company that focuses on professional development also makes NN attractive for talented people on the labour market. Appreciation is one of the key elements of this CLA. In addition to financial remuneration, there are many other ways in which employees can be rewarded as part of employment relationships are based on equality. Examples include opportunities for personal development, autonomy, personal attention and compliments. NN is now an independent business, operating in a rapidly changing market. This CLA will help employees and NN respond effectively to changes taking place in our company and in society as a whole. 5

6 1 My Employment Agreement

7 If you have an employment agreement with NN, the conditions as agreed in this CLA apply to your employment. The CLA has been agreed by and between the CLA parties: NN and the trade unions 1.1 Target group The CLA governs the employment conditions of all those who are employed by NN and whose job titles are classified under functional scales 1 to 15, inclusive. If you are an intern, holiday staff or temporary staff member, or if you have been seconded under an employment agreement with an employer other than NN, this CLA does not govern your employment, with the exception of the provisions of article Term of validity This CLA will be effective from 1 January 2016 up to and including 31 December No later than three months prior to the expiry of the CLA, CLA parties may send a notification by registered mail to indicate that they wish to either terminate the CLA or modify any of its conditions. Failing such notification, the CLA will be extended automatically by a period of one year each time. 1.3 CLA The conditions of this CLA supersede the conditions of any previous CLA, which are no longer considered valid; all other agreements are deemed invalid. This CLA is a standard collective labour agreement. This implies that the agreements laid down in this CLA cannot be set aside to the advantage or the disadvantage of the employee. Derogations are only allowed: if explicitly allowed in the CLA; if the CLA parties agree upon different terms during the term of the CLA on behalf of specific business units or groups of employees. Such derogations from the CLA must be confirmed in writing by the CLA parties and announced to the employees concerned. The written confirmation of these terms renders them inclusive parts of the CLA. 1.4 Employment agreement NN endeavours to offer employees permanent employment contracts. Your employment agreement is subject to the statutory provisions for term and termination (articles 7:667 to 7:686 inclusive of the Dutch Civil Code). Derogations from the statutory provisions: As a rule, NN will offer you an individual employment agreement with a probationary period of no more than two months, unless your employment agreement expires within six months, in which case there is no probationary period (article 7:652 of the Dutch Civil Code). The statutory term of notice may be extended in an individual employment agreement (article 7:672, paragraph 6 of the Dutch Civil Code). If you worked for NN as temporary staff prior to your permanent employment by NN, the total period of your temporary employment (including interruptions of less than six months) will be regarded as a single employment agreement for a definite period of time (article 7:668a, paragraphs 1 and 2 of the Dutch Civil Code). 1.5 Termination of your employment Your employment will end on the last day of the month preceding the month in which your pension begins, but in any case and by operation of the law on the day before you reach the age of Future laws and regulations Relevant changes in laws and regulations may give rise to modification of the CLA, while regulators may also insist on modifications. In such cases, the CLA parties will discuss the need for change and agree upon different terms where necessary. 7

8 1.7 Monitoring and interpreting the CLA The CLA parties monitor the implementation of the agreements. If there are any ambiguities as to the implementation of the CLA, the CLA parties will clarify the situation. If the CLA texts give rise to differences of interpretation, CLA parties may discuss the matter and adjust the texts where necessary. CLA parties will also monitor the implementation of the CLA. They will make agreements regarding the details, purpose and timing of implementation of the CLA and regarding the application of its tools. 8

9 2 My Employment Relationship

10 As in the previous CLA, employment relationships based on equality are key to this CLA. This type of relationship is reflected mostly by your relationship with your manager and the agreements you make together. These agreements are made on the basis of equality and mutual trust, for which you are both equally responsible. 2.1 Employment relationship based on equality An employment relationship based on equality is fundamental to the agreements you and your manager make. Equality should lie at the heart of all of your talks, whether they concern your performance management cycle, your working hours or your ability to work from any location at any time. Employment relationships based on equality will also be discussed with the trade unions and the Works Council on a regular basis. Cases where improvement would be desirable may be reported to or discussed with the mediator for labour relationships. Such reports will be discussed with the Works Council and at the CLA parties regular meetings. 2.2 CLA and HR schemes Some of the agreements laid down in the CLA are mapped out in more detail in personnel schemes. A summary of these schemes is available in Chapter 10. These employment conditions are further specified in the HR community. 2.3 Disputes If you have a difference of opinion with anyone working at NN or if you are affected by inappropriate conduct, you should always try to find a solution through dialogue. If dialogue does not yield any solution, you can request someone from within the organisation to act as your counsel or intermediary. If you still cannot find a solution, you may submit a formal complaint. More information on this topic is available in the HR community. 2.4 Unacceptable conduct Unfortunately, it may transpire that NN s employees fail to observe the company s rules and regulations. When this occurs, the measures listed below may take effect. For more information, see the NN Code of Conduct. Suspension If NN is of the opinion that your conduct is unacceptable (for example: serious and/or repeated violation of the law or company regulations), you may be suspended for a period of up to seven working days following an internal investigation or to enable such an investigation. During your suspension, you will not receive any salary. Non-active status If your allegedly unacceptable conduct is serious enough to justify dismissal with immediate effect, (being an urgent cause as referred to in articles 7:677 and 7:678 of the Dutch Civil Code), you may be put on non-active status pending the investigation of your conduct. Your salary may be withheld during the entire period. If the investigation reveals that your conduct was not unacceptable, you will be rehabilitated in writing upon your request. Any salary withheld will be paid out by NN. If you are not dismissed with immediate effect on the grounds of unacceptable conduct, but your employment agreement is terminated or dissolved, NN may extend your non-active status (with or without payment of your salary). CAO NN 10

11 3 My Time

12 An optimal work-life balance boosts employee satisfaction and productivity. This is why it is important that you, as an employee, are given the opportunity, in collaboration with your manager, to design tailored employment agreements regarding your office hours and leave. 3.1 Working hours The standard average number of working hours is 36 hours a week (1,872 hours a year). You and your manager may agree to increase or reduce your average number of weekly working hours: Your personal working hours. If you wish to reduce or increase your personal working hours, your request will be assessed in accordance with the criteria of the Flexible Work Act (Wet flexibel werken). Your manager will make a reasonable assessment of your request. If your request is denied, your manager will give you a written statement explaining the reasons for denying it. Your manager may also request that you increase your working hours up to a maximum of 40 hours a week. This is a topic for you and your manager to discuss, taking into account your personal interests as well as those of your colleagues and NN. If you and your manager are unable to reach a suitable solution, your opinion on this matter is decisive. 3.2 Work pattern Your work pattern is scheduled in consultation with your manager, taking into consideration customer interests, the company s interest, workflow and performance requirements, as well as the wishes of, and what is feasible for you and your colleagues. The framework for scheduling office hours is in line with the Working Hours Act (Arbeidstijdenwet). NN may implement or modify a collective work schedule for a specific group or unit within NN. These schedules and any changes thereto are subject to approval by the Works Council under article 27 of the Works Councils Act (Wet op de Ondernemingsraden). If your work pattern includes work on Saturdays, you receive a 25% allowance. This does not apply if you are working on a Saturday in deviation of your work pattern by your own choice or if you are working overtime. Field staff is not eligible for the allowance. 3.3 Annual hours system NN may implement an annual hours system, particularly for departments working with work rosters. This will improve the alignment between internal capacity and demand, while also taking into account the wishes of employees. The implementation of an annual hours system will be presented to the Works Council for approval. 3.4 Working from any location at any time (NN way of working) NN s policies are based on the NN Way of Working and an employment relationship based on equality, to provide you with enough options for adapting your job to the needs of the company and your private life. To this effect, you and your manager make the necessary agreements. In consultation with your manager and colleagues, you determine which of your duties are suited for working from any location at any time, taking into account business processes, customer needs, staff capacity and work schedules. Guidelines for working from any location at any time can be found in the HR community. 12

13 3.5 Overtime compensation Your work is considered overtime if you are requested by your manager to perform duties that temporarily require you to work more than your personal working hours and these additional hours cannot be set off by your personal working hours. In this situation, you may be eligible for overtime compensation if your job is graded below functional scale 11. If it is your own decision to work during the hours listed below, your work is not considered overtime. Moreover, field staff is not eligible for overtime compensation. Overtime compensation amounts to 125% of your hourly wage, unless you are requested to work during the hours listed in the table below. If you perform duties at the hours listed below, your overtime compensation amounts to: At % of hourly wage Monday through Friday, from 9 p.m. - 7 a.m. 150% Saturday before 5 p.m. 150% Saturday after 5 p.m., Sundays and public holidays 200% If you are free to decide when to perform your additional duties, your overtime compensation amounts to 125% of your hourly wage. Until 31 December 2016, you may opt to be compensated in time off instead of in pay. As from 1 January 2017, you will no longer have the option of being compensated in time off. Your overtime will then be compensated in pay, which you can use to purchase leave hours if you wish. 3.6 Public holidays You are entitled to leave on full pay on the following public holidays: New Year s Day Easter Sunday and Easter Monday King s Day Ascension Day Whit Sunday and Whit Monday Christmas Day and Boxing Day (25 and 26 December) Celebrations of 5th of May every fifth year (in 2020, 2025 and so on) 3.7 Leave hours Statutory leave hours Supplemental leave hours If you work an average of 36 hours a week, your statutory entitlement to leave on full pay is 144 hours a year. If your personal working hours are above or below 36 hours, your leave entitlement is adjusted proportionally. If you enter or leave employment during the course of the calendar year, your leave entitlement is reduced proportionally. Statutory leave hours expire on 1 July of the year following the year in which the leave accrued. Guaranteed hours You may be entitled to additional supplemental leave hours as part of a guaranteed scheme. These hours will be added to your summary of leave hours. If your average number of working hours is modified, these guaranteed hours will be adjusted accordingly. Purchasing leave hours Until 1 January 2017, you will be allowed to buy leave hours up to a maximum of 10 times your personal working hours. Any leave hours which accrued before 2012 and you still have outstanding will expire on 1 January

14 After this date, the following will apply: If the balance of your statutory and supplemental leave hours on 31 December exceeds 10 times your personal working hours for that year, the excess hours will be deducted from your supplemental leave hours in January of the following year and paid out to you. Before taking up any leave hours, you will have to consult with your manager and colleagues (article 7:638 of the Dutch Civil Code). See Chapter 7 for taking out leave hours if you are incapacitated for work. 3.8 Other types of leave NN complies with the Work and Care Act (Wet arbeid en zorg) when it comes to defining different types of leave and the provisions regarding duration and retention of your salary. NN s schemes for adoption leave or maternity leave are more extensive than those of this Act. In addition, NN has a scheme for unpaid leave. If there are exceptional circumstances for which you wish to take leave, you may take special leave. If there is no statutory or company scheme available, you should consult with your manager. Together, you and your manager make agreements as to if and when you may take up special leave. A list of all leave schemes is available in the HR community. 3.9 Staying at work with vitality NN s personnel policies will address the consequences of careers lasting longer on account of the pensionable age rising to 67. Several tools are available in support of these policies, including a vitality check, training programmes and flex pension. The CLA parties consider it important that the manager and the employee take an active stance towards discussing the options for staying at work with vitality and using these tools. 14

15 4 My Performance

16 NN s employees work with continual dedication to realise the company s targets. NN s performance management policy serves as the basis for the targets you and your manager agree upon. This policy aims to support and stimulate your performance and development by motivating you with agreements which are based on mutual trust. 4.1 Targets Performance management is fundamental to our performance and development policy. The method is based on annually recurring interviews in which you and your manager: set individual and development targets (planning), discuss your progress in achieving your targets and how you are realising them (coaching), determine the levels of your performance (appraisal). NN s corporate targets serve as the basis for your individual targets. Translating them into your personal targets with your manager gives you a clear picture of how you can contribute effectively to your team, the company and the customer s interest. Your manager coaches and supports you in this process. The performance management cycle allows you to make individual and development targets with horizons before or after the regular one-year performance management cycle. By monitoring your progress during each performance management session, you can anticipate developments at an earlier stage Individual targets NN considers it important that you and your manager make clear, challenging and meaningful individual targets that provide adequate room to accommodate your professional needs, and those of your colleagues, in a continually changing environment. By agreeing on targets together and with mutual respect, you and your manager lay the foundation for equality and mutual trust in your working relationship. Together, you shape an employment relationship based on equality. In this process, your manager focuses on the company s and the team s targets and the conditions under which they need to be realised. You are responsible for selecting the best options and how to implement them, while your manager facilitates this for you Development targets Agreements concerning your development are just as important as your individual targets. Your conduct, knowledge and competencies largely determine how customers, colleagues and your manager perceive your efforts. It is only natural that your conduct is reflected by your appraisal. Development targets are also meant to develop your skills and deploy your talents more efficiently, so you can make the most of your potential. By developing yourself, you enhance your own strength and effectiveness as well as that of NN, while also increasing your opportunities on the internal and external job market. Starting in 2017, development targets will account for 50% of your appraisal in the performance management cycle. In exceptional cases, this proportion can be deviated from by mutual agreement. NN facilitates training programmes and workshops that will help you and your and manager prepare for a good development talk. 4.2 Dialogue Effective implementation of the agreed targets calls for continued focus on the dialogue between you and your manager. You and your manager can enhance the quality of your dialogue by making use of the facilities developed for this purpose. See the HR community for details. NN also facilitates training programmes and workshops that will help you and your and manager prepare for a good development talk. 16

17 4.3 Performance management evolves It is important for NN to realise change at a faster pace and to align its performance management policy accordingly. In 2016, a small group of employees (some of whom are subject to the CLA) will practice working with different performance management methods. During the pilot, this group will be appraised and rewarded according to the specific terms of the pilot rather than those of the CLA. The pilot aims to encourage dialogue and development and being able to adjust targets to changing circumstances more rapidly; it will include several short progress checks, reflections and forecasts, and will focus on listening and coaching There will also be a study to explore alternative ways of connecting appraisal and reward. The terms agreed in the CLA with regard to performance management will not be modified at this stage, but potentially will be after completion of the pilot. Following the evaluation of the pilot and during this CLA period, the parties will assess whether and how to apply this performance management system to a larger group of employees. They will also consider an extension of the pilot. 17

18 5 My Remuneration

19 NN wants to be an attractive employer. Having a remuneration policy that is dovetailed to the market, the company s strategies and its international business is an asset. NN offers you the security of a good fixed salary, alongside our variable remuneration policy, in which our customer s interests and the company s performance play a significant role. 5.1 Remuneration system In addition to a fixed salary system, NN also offers variable remuneration. Variable remuneration rewards you specifically and distinctly for your performance, those of the company and the appreciation our customers have for us. Each year, your manager assesses your personal development and the results you have achieved for the year and awards you a performance score. This score serves as the basis for your individual salary increase and is one of the factors of your variable remuneration. In addition to fixed and variable remuneration, NN wants to mobilise alternative forms of compensation to reward its employees for excellent performance. Other ways of rewarding employees, such as facilitating personal development, autonomy, personal attention and giving compliments, make sense when employment relationships are based on equality. Your manager has a range of ways to reward exceptional performance. 5.2 Job grading and benchmarks Your remuneration is based on a job grading system and a benchmark. The job grading system ensures that jobs titles are classified consistently and can be benchmarked with the external market. Specific benchmarks are used to assess whether NN s remuneration levels are in conformity with the market. In order to keep internal relationships between jobs consistent, the job matrix needs to be recalibrated from time to time. During the term of this CLA, the process of recalibrating the job matrix will be fine-tuned to update job descriptions, remuneration and job classifications. Job classifications All job titles within NN are defined in such a way that they are identifiable by you and your manager. Using a job grading system that has been accepted by the CLA parties, job titles have been standardised according to the nature, content and level of each job and classified into job chains. The classification method is implemented after it has been approved by the Works Council. NN has in place a functional scales structure consisting of 15 successive scales. Job grading procedure NN classifies jobs into one of the standard job titles (an identifiable, broadly applicable job title). The job that needs to be classified is compared with the standard job title that best fits the job. This procedure ensures that all jobs and their levels within any of the business units are graded consistently. More information is available in the HR community. 5.3 Fixed remuneration Collective salary increases During the term of this CLA, NN will raise salaries and salary scales as follows: by 0.75% on 1 July 2016 by 1.25% on 1 April 2017 by 1.5% on 1 December Lump-sum payments You will receive a lump-sum gross payment of 1,000 in June 2016 and a lump-sum gross payment of 250 in December These amounts apply if you work at least 36 hours a week on average. If you work fewer than 36 hours a week on average, the amounts will be paid out on a pro rata basis. For employees receiving benefits under the WGA (Resumption of Work for Partially Fit Persons Regulation), their personal working hours are considered equal to their agreed working hours. 19

20 5.3.3 Basis for your salary NN rewards you within the range of the salary scale that corresponds to your job title. Your hourly wage serves as the basis for calculating your salary. Your annual salary is based on your personal weekly working hours Adjustments to your monthly salary Together with your manager, you make agreements that tie in with your job and your career plan. These agreements are reflected by your: individual targets development targets At the end of the appraisal period, your achievement of targets and your development serve as input for your job appraisal. Your manager will give you a performance score for these. Based on your performance score, your monthly salary is increased in accordance with the table below. Your salary can be increased until you reach the ceiling of your salary scale. These individual salary adjustments are made annually on 1 April. Performance score Description Increase of monthly salary 1 Excellent 4.8% 2 Very good 3.6% 3 Normal / good 2.4% 4 Development in progress 1.2% 5 Poor 0% 6 Unacceptable 0% Functional scale changes Higher functional scale If you switch to a job classified in a higher functional scale, your old monthly salary will be increased by at least 2.4%, but no more than 4.8%. You will receive your new monthly salary with effect from the first day of the month in which you either start your new job or your functional scale is adjusted due to the regrading of your job. If you have a gradually reduced personal allowance (PTA allowance), the increase referred to above is applied first. Then, the headroom remaining in your new functional scale is used to cover your PTA, until you reach your scale ceiling. If your entire PTA cannot be covered by the headroom remaining in your new functional scale, the excess PTA will continue to be a PTA allowance. If your new monthly salary is lower than the minimum level of your new functional scale, your new monthly salary will be raised to the minimum level of your new functional scale. Lower functional scale If you switch to a job that is classified in a lower functional scale, your new monthly salary will be determined by NN based on your new functional scale. You will receive your new monthly salary with effect from the first day of the month in which you either start your new job or your functional scale is adjusted due to the regrading of your job. If your job is lowered by one functional scale, you receive a gradually reduced personal allowance (PTA) if your current monthly salary exceeds the ceiling of your new functional scale. If a collective salary increase is awarded, your PTA will be lowered by the same amount as your monthly salary is raised. As a result, the sum of your new monthly salary and your PTA will be at the same level as before the collective salary increase was awarded. You will retain your PTA until you reach the ceiling of your new salary scale. 20

21 If your functional scale is lowered by more than one scale, the following applies: Your new monthly salary is capped at the maximum of your new job s salary scale. The difference between your new monthly salary and the maximum of the next-higher functional scale is allocated as a PTA allowance. In addition, you will receive a lump-sum gross payment, the amount of which is equal to the difference between your former personal monthly salary and the maximum monthly salary of the next-higher functional scale referred to above, multiplied by The lump-sum payment is not included in calculations for other benefits, such as variable remuneration, Personal Choice Budget and pension. 5.4 Variable remuneration Basis for your variable remuneration Your annual salary serves as the basis for your variable remuneration. The following three factors are also included in the calculation of your variable remuneration: a fixed percentage based on your functional scale (F) your individual performance score (I) collective performance (C) Calculation method Your variable remuneration is calculated by multiplying F x I x C. The resulting percentage is multiplied by your annual salary. F: Percentage functional scale Functional scale Percentage Percentages for scales 13 to 15 are published in the HR community. I: Multiplication factor based on your performance score. Performance score Description Factor 1 Excellent Very good Normal / good 1 4 Development in progress Poor 0 6 Unacceptable 0 C: Multiplication factor based on collective performance The C factor represents the sum of the results achieved by NN with regard to customer satisfaction (Customer Index) and financial performance (Financial Index). The two index figures are determined each year after publication of the annual figures, after which the C factor is calculated. The C factor is calculated as follows: Targets are set for both the Financial Index and the Customer Index in a given year. The on-target level is 100% (= factor 1.0). The final score for each index is set off against a benchmark ranging from 0% to 150%. This produces a factor ranging from 0 to 1.5 for each index. The final C factor is calculated as 1/3 times the Customer Index plus 2/3 times the Financial Index. 21

22 Financial Index The Financial Index comprises several key indicators, which NN determines at central level and which together represent the financial performance of NN. The table below illustrates the correlation between the index figures for each of the business units. Employed by Index for Insurance NL NN Group Head Office NN Investment Partners Insurance NL 75% NN Group Head Office NN Investment Partners 25% 100% 25% 75% The outcome of the Financial Index is published annually. The CLA parties can monitor progress on a quarterly basis and make changes when necessary - subject to NN s relevant compliance regulations. Customer Index The Customer Index is measured through customer satisfaction. The correlation between customer satisfaction figures for each of the business units is illustrated in the table below. Employed by Index for Insurance NL NN Group Head Office NN Investment Partners Insurance NL 100% 37.5% NN Group Head Office 37.5% NN Investment Partners 25% 100% Variable remuneration Variable remuneration is paid out in April. Your variable remuneration is neither included in the calculation of any other compensation, bonus or allowance mentioned in the CLA, nor in the calculation of your pension base. Payment of variable remuneration is subject to the following conditions: a positive outcome of the capital test prior to the date of payment; a performance score of 1, 2, 3 or 4; an employment agreement with NN on 1 April of the year of payment. 5.5 Other forms of remuneration Allowance for individual savings (TIS) If your gross fixed personal annual salary exceeds the statutory maximum ( 101,519 in 2016), your salary in excess of this amount will no longer accrue pension. This could have implications for the level of your pension benefits once you retire, but also for your benefits in the event that you become unfit for work or pass away before your retirement date. To cover this part of the salary for the employees concerned, collective mortality risk insurance has been taken out. NN s occupational disability insurance will continue to apply to their entire salary. NN will pay pension contributions for your salary up to the statutory maximum. In addition, you will receive a monthly allowance for individual savings (TIS). The level of this allowance will be determined annually, based on the pension contribution payable for salaries up to the statutory maximum, net of the employee s share of the contribution, the contribution for mortality risk insurance and the occupational disability risk. If you work fewer than 36 hours a week, the statutory maximum will be adjusted 22

23 on a pro rata basis. More information about the allowance for individual savings (TIS) and the statutory maximum is available in the HR community. Gradually reduced personal allowance (PTA) The PTA is earned back because your PTA is gradually reduced by the same amount as your new salary increases as a result of collective salary increases. Your PTA allowance is included in the calculation of your pension accrual and your Personal Choice Budget. It is not included in the calculation of your variable remuneration. PTN allowance A PTN allowance can be awarded on top of your monthly salary. A PTN (nominal personal allowance) is not included in the calculation of any other allowance, bonus or payment referred to in the CLA. PTN allowance is not included in the calculation of your pension accrual. Market value allowance If, in NN s opinion, the situation on the job market justifies it, NN can allocate a market value allowance in incidental cases and on an individual and temporary basis. A market value allowance is compared to the annual benchmark, which may result in the allowance being discontinued. The market value allowance is paid out as a PTN allowance. 5.6 Separate remuneration policies Consistency NN s remuneration policy is based on the principle of consistency. Subject to this principle, Insurance NL and NN Group Head Office are free to determine their own levels of remuneration and remuneration policies for functional scales 13 and up. NN Investment Partners is free to determine its own policy for functional scales 11 and up. This policy freedom also applies to variable remuneration for employees working abroad under a Dutch employment agreement with NN (expats). The CLA parties will review the remuneration policy put into place by NN Investment Partners. Their review will involve an adjustment of the policy between the Board and the Works Council. The policy is based on the principle that if a salary increase is justified, the CLA performance scores will be applied to the salary increase. If NN Investment Partners wishes to deviate from this principle collectively, it will require permission from the NN Group Compensation Committee. Tailored remuneration Being an attractive employer may imply that tailored solutions are offered to certain employees or groups of employees. Tailored remuneration is granted only after the need has been assessed. The effectiveness of the tailored remuneration is regularly assessed, and may lead to adjustment or discontinuation of the remuneration. Examples of assessment criteria: The nature of the job and its relevance to NN. The time it takes for vacancies to be fulfilled. Salary information produced by a general or specific benchmark. Adjusting the tailored remuneration If NN wants to grant a new group of employees tailored remuneration or modify the remuneration policy pertaining to a group of employees, it will have to consult the Works Council in advance, in accordance with article 27 of the Works Councils Act (Wet op de Ondernemingsraden). NN will inform and consult the trade unions during this approval procedure. Any remuneration policy that deviates from the CLA will be published in the HR community. 23

24 5.7 Coherent remuneration policy The CLA parties will work towards achieving a coherent remuneration policy during the term of this CLA. The trade unions will focus mainly on achieving a reasonable balance between the remuneration package for senior management and that of employees whose employment is governed by the CLA. 5.8 Personal Choice Budget options Your Personal Choice Budget (PCB) amounts to 23.54% of your gross personal monthly salary for that month. A portion of your PCB accrues pension: 16.33% of your gross personal monthly salary. Your Personal Choice Budget comprises these former salary elements: statutory leave allowance 13th month value of your supplemental leave hours (50.4 leave hours per year if your average working hours are 36 per week. If your personal working hours are different, leave hours are adjusted proportionally. employer s contribution to your life-cycle savings Until 1 January 2017, you can reserve all or part of your PCB budget for payment on a later date of your choice in that same calendar year; starting in 2017, this will no longer be possible. During the term of this CLA, the CLA parties will review the Personal Choice Budget and perhaps modify it. 5.9 Specific allowances Gratuity payment upon retirement As from 1 January 2017, gratuity payments upon retirement will no longer be granted. NN does, however, consider it important to commemorate your departure when you retire and will celebrate this with you in an appropriate manner. Guaranteed lump-sum payment regarding NN pension During the term of this CLA, the CLA parties may decide to discontinue this scheme. Prior to making this decision, they will review the scheme. Their decision-making procedure will include prior consultations with the Central Works Council and with the employees eligible for this scheme. 24

25 6 My Development

26 To ensure the continuity for individual careers and for operations of NN, we need to invest in development and expertise. In a rapidly changing market and organisation, employees and their managers need to communicate with each other continually. Among the items that should be discussed regularly are personal development and initiatives aimed at ensuring an employee s employability on the internal or external labour market and his/her vitality to continue working longer. NN wants to work together with employees to develop initiatives that will foster a culture of continuous learning through regular conversations about awareness, changing roles and ownership of permanent employability. Investing in your own development means acquiring both in-depth and broad knowledge and skills that help you keep your job or find a new one. Being aware of your own capabilities, intensifying and broadening your skills and expertise and continually developing yourself is what we call permanent employability. NN is committed to making the most of everyone s talents. The focus in this CLA period will be on taking the initiative to change and to keep changing. Whether you invest in your professional development for your current job or for a different job, inside or outside NN, it is vital that you keep investing in yourself. Professional development should be a natural topic of discussion during your dialogue with your manager. Enjoying your work and your profession and staying energetic throughout your career at NN is also essential. Postponed pension dates and regularly changing duties or work environments have become trends in our society. Adapting to your environment by always focusing on your own development (for example by taking part in training programmes, changing jobs or doing traineeships) is the best way to improve your value in the labour market. Your value in the labour market is an indicator of how easy or difficult it will be for you to find a suitable job on the labour market, given your specific knowledge, experience and personal situation. This is why we are introducing the career plan, expanding the options for professional development and have moved the relevant tools from the Social Plan to the CLA. These options will be made available during the term of this CLA. NN will facilitate access to the tools available for your development and mobility and inform you extensively about this. 6.1 Career plan A career plan is personal - you write it by yourself. You are the writer, director and owner of your career plan. Your career plan focuses on what you need in order to: meet the ongoing requirements of your current job be prepared for a different job within NN and/or a job outside NN Your career plan is a part of your performance management cycle and serves as the starting point for your professional development. You can ask someone to help you write your career plan, including your own manager, a mentor, a colleague or a specialist. NN will also develop relevant training programmes and workshops for employees and managers. 6.2 A day for Taking the initiative In 2017, you will be allowed to spend an extra day on writing your career plan or undertaking an activity relating to your career plan, instead of performing your regular duties. 6.3 Inspiration sessions The CLA parties will organise inspiration sessions along the lines of the themes that this CLA focuses on. These sessions will aim to provide information, enhance engagement among employees and intensify the dialogue with employees about these themes. 26

27 6.4 Facilities for professional development NN facilitates your professional development in terms of money and time. As a basic principle, the facilities for professional development listed below will be granted unless the management provides well-founded reasons, in writing, to deny all or some of the facilities. In any case, the following applies: Training programmes that you need to follow in order for you to perform your current duties or those of a new job (inside or outside NN) will be fully reimbursed. In terms of time spent on going to classes, the investment is basically 50% in your own time and 50% in NN time. Any time you spend on training programmes that you need to follow for your current job can be done fully during worktime. In departments that have a work roster in place, making time available for training programmes can be an issue. The CLA parties feel that time should not be a reason to keep employees from following training programmes. It does, however, mean that you will have to discuss your wish to follow a course and the implications for the work roster with your manager well in advance, so he/she can take this into account Training and education Professional skills training You have to be able to do your work well. You need to be knowledgeable, skilled and up to date on developments that are relevant to your line of work. To this end, you follow training programmes that NN is more than willing to invest in. It is why NN reimburses the training programmes you need in order to perform your professional duties. Broaden your skills If you want to broaden your skills in view of a potential career inside or outside NN, NN will invest in relevant training programmes, provided they are included in your career plan. Costs of training programmes to broaden your skills are in basically reimbursed. See article 6.4. For training programmes not directly related to your current job, you or your manager can request prior advice from a professional advisor. This advisor will assess whether the training programme ties in with your career plan and enhances your job opportunities. 75% of the training expenses will be refunded, while 25% will be paid in advance as a loan, which you will not have to repay if you earn your degree. Note that any training programme you wish to follow must be allowed under tax laws. Experience certificates It is important for you to be qualified at no less than medium-level vocational education. Costs you make to attain experience certificates at medium and higher-level vocational training are reimbursed in full. You will find more information about facilities for training programmes in the Guidelines for Development & Expertise. See the HR community for details Acquiring new experience Acquiring new experience will help you understand your wishes and your capabilities. This is why the CLA parties encourage the use of these facilities. As part of your career plan, you can acquire experience in other fields by: internal job switches, traineeships, secondments, projects, visiting an external company and side-line activities. As a rule, the facilities are also available for these activities Career check and career coaching In order to continue working, you need to be aware of your opportunities and talents. You and your manager have regular talks to discuss these matters. A career check can be of great help when writing your career plan. More information is available in the HR community. 27

28 6.4.4 Personal strength and value in the labour market Understanding your personal strengths and your value in the labour market will widen your prospects for initiating your own professional development. In support of this, NN will introduce tools during the term of this CLA to help you determine and/or enhance your value in the labour market and your personal strengths. 6.5 Feedback Feedback is an essential part of self-reflection. Feedback can be asked from managers, but also from clients and direct colleagues. To encourage everyone to give and ask for feedback, a 360⁰ feedback tool is available for employees who wish to ask for feedback. More information is available in the HR community. 6.6 Internal career fair NN will set up an internal career fair, where the supply of projects or other (permanent or temporary) work inside NN is matched with the wishes, preferences and capabilities of employees. You and the manager concerned will have to make agreements about the duration of such transfers and the right to return to your job. 6.7 External labour market To help you write your career plan, NN will make available reports on trends in the labour market. This information will improve your insight into emerging and growing (as well as declining) industries and professions. 6.8 Gradual departure from NN If you wish to start your own business as part of your career plan, but you do not wish to fully terminate your employment with NN for the time being, tailor-made terms can be agreed upon. Within reason, NN will make available facilities in terms of time and/or money. 6.9 Strategic Personnel Planning Strategic Personnel Planning (SPP) helps improve insight into staffing requirements (in terms of quantity and quality) for the medium and long term. It also helps the employee write his/her career plan. NN provides the trade unions with an annual summary of its work supply by implementing SPP. The goal is to permanently reduce the number of external workers hired on a temporary basis and providing employees with training facilities in due time. 28

29 7 My Health

30 Postponing the date of retirement is a trend in society and within NN as well. NN s health policies focus on optimising employment conditions, limiting health risks and fostering your vitality. Vitality, counselling in relation to absenteeism and perceived workload and helping absent employees resume their duties after occupational disability are focal points, based on responsibility being shared by you and NN. 7.1 Vitality Designing policies aimed at staying at work with vitality will need an active contribution from both you and the organisation. CLA parties are keen to create a healthy working environment, where people enjoy doing their work and have enough energy and vitality to stay at work longer. NN supports you by offering health checks and stress tests. 7.2 Perceived workload The CLA parties understand that combining your job with training programmes and in some cases other duties, personal duties or care, can make you feel stressed. Understanding what causes your stress and how you can relieve some of the pressure can help. To help you analyse your situation, NN will offer a personal test to measure your workload. The results of the test will be personal and confidential, although anonymous results may be used to recognise trends and areas of improvement at NN. You can discuss your perceived workload with your manager and make appropriate agreements. 7.3 Informal family care The number of people performing volunteer care duties in the Netherlands is substantial and growing. NN also has employees who perform volunteer care duties, which are not always recognised as such by the employee in question and/or their manager. The CLA parties have agreed that NN will provide information on how to recognise volunteer care duties and how to deal with these duties in relation to the employee s work for NN, and will stimulate managers to discuss volunteer care duties. NN will ensure that managers and employees are provided with information and can be referred to organisations specialised in volunteer care. If you have volunteer care duties, you can discuss this with your manager. 7.4 Illness If you are incapacitated for work, it is both in your and NN s best interests that you resume your work as responsibly as possible. The CLA parties feel that employees with an occupational disability should be able to stay at work or resume their work, taking into account their recovery and their capabilities. You and your manager stay in touch and agree on the terms of your resumption of work and record the terms agreed in an action plan. Alongside the company physician s role, the reintegration consultant can advise you in this process. Reintegration You and your manager record the terms agreed for your reintegration in an action plan. Based on this plan and after 22 weeks of your incapacity to work, the Reintegration Team will assess whether you have cooperated sufficiently on your reintegration. Any supplemental payments can then be processed as from the 26th week. The Reintegration Team bases its assessment on the requirements of the Eligibility for Permanent Invalidity Benefit [Restrictions] Act (Wet Verbetering Poortwachter). Leave hours while you are incapacitated for work While you are incapacitated for work, you are entitled to full accrual of leave hours. When you take up leave hours, you are deemed to be in the same position as an employee who is completely fit for work. 30

31 Policy for compensation You may incur a loss of income due to your incapacity for work. NN will compensate your loss partially and temporarily, subject to the following rules: If you perform some of your duties, your salary will be higher than if you do not perform any duties at all. Your salary during your incapacity for work is never higher than what you would receive if you were not incapacitated. Supplemental benefits are paid out as long as you stay employed. Continued payment of your salary and any supplemental benefits may be denied or deferred. See the HR community for the rules. If NN can claim damages from any third party in connection with your incapacity for work, you are expected to cooperate fully Your salary if you are incapacitated for work Until 1 January 2017 Your salary will continue to be paid while you are incapacitated for work: 100% of your gross personal monthly salary will be paid out during the first year. 70% of your gross personal monthly salary will be paid out during the second year. 100% of your gross personal monthly salary is paid out for hours that you work during this period The amount of your Personal Choice Budget is based on the continued payment of your salary (first year: 100% and second year: 70%) Starting 1 January 2017 Your salary will continue to be paid while you are incapacitated for work: 100% of your gross personal monthly salary will be paid out during the first six months. From the second half year of your illness until the end of the second year, you will receive 100% of your personal monthly salary for the hours you are working. For the hours that you are unable to work, you will receive 70% of your personal monthly salary. The amount of your Personal Choice Budget is based on the continued payment of your salary (first six months: 100% and from six months until the end of the second year: 70%) Supplement to your salary if you are incapacitated for work The Reintegration Team will assess whether you have cooperated sufficiently on your reintegration. If the Team s opinion is positive, you will be eligible for a salary supplement. Until 1 January 2017 A salary supplement of 20% of your gross monthly salary (including your Personal Choice Budget) is paid for hours not worked during the second year of your incapacity to work. You may be eligible for an additional conditional supplement amounting to 10% of your gross personal monthly salary for hours not worked during the second year of your incapacity to work. This supplement is paid out retroactively at the end of the second year (the first 104 weeks of your incapacity for work). The Reintegration Team will decide whether you are eligible for the additional supplement and will assess whether you have realised the highest level of reintegration you could possibly reach given your circumstances. The Reintegration Team makes its assessment either upon your full recovery or after the first 104 weeks of your incapacity for work. The assessment takes into account the effort and flexibility you have demonstrated, while the pace of your reintegration is compared to the previously designed action plan. The additional supplement is only granted if you previously received the 20% salary supplement Starting 1 January 2017 A salary supplement of 30% of your gross monthly salary (including your Personal Choice Budget) is paid for hours not worked after six months, until the end of the second year of your incapacity to work. If your reintegration is not possible or if you cannot fulfil your action plan due to 31

32 your occupational disability or for reasons that are accountable to NN due to culpability on its part, you will receive the supplemental payment as well. Assessment by the UWV When the Institute for Employee Benefit Schemes (UWV) assesses applications for benefits under the Work and Income (Ability to Work) Act (WIA), it too investigates whether sufficient effort has been made to reintegrate. If the UWV finds that NN s reintegration efforts have been inadequate, the continued payment of your salary is extended by up to one year. During this extension, you receive the same amount you did after six months and until the second year of your incapacity for work, including any supplements Variable remuneration if you are incapacitated for work Starting on 1 January 2017, the following applies: If your performance score is 8 (no appraisal possible) and in the last three months of your appraisal year you received 100% of your salary or your salary was supplemented up to 100%, variable remuneration will be paid out for an amount equal to your average monthly salary plus supplements, with the I factor amounting to Payments after two years of incapacitation for work If your incapacity for work lasts more than two years, you may be eligible for occupational disability benefits from the government or supplemental payments from NN. Until 1 January 2017 and after your second year of illness, occupational disability benefits under the WGA (Resumption of Work for Partially Fit Persons Regulation) will be supplemented up to 75% of the personal monthly salary you were receiving on the first day of your illness. After 1 January 2017, up to 70% will be supplemented. The terms agreed regarding the Income Provision to Persons with Full Incapacity for Work Act (IVA) have not been changed (75%). The financial consequences and conditions are detailed in the HR community. A distinction is made between the first day of your incapacity for work being either before 1 January 2004 or on/after 1 January On a voluntary basis and at your own expense, you may take part in a collective supplemental insurance taken out by NN Resuming your work, in or outside the company NN will help you in your efforts to stay or become fully or partially employable while you are incapacitated for work. First, suitable work is sought within NN. Every effort is made to find a job that will enable you to fully utilise your residual earning capacity. If necessary, you will be given the opportunity of following training programmes and refresher courses. You will be offered a suitable job in writing. If you refuse the suitable job, you must apply for a second opinion from the UWV within two weeks. If the UWV considers the job offer suitable and you still refuse to accept it, the supplement to your occupational disability benefits will be discontinued. If the UWV rules in your favour, NN will continue to seek a suitable job for you. Suitable jobs may be available at other employers. If you accept a suitable job at another employer and it becomes apparent within six months that this new job will not render you a permanent employment contract, NN will discuss possible subsequent actions with you. If you apply for a second opinion from the UWV regarding the written offer of suitable work with another employer, you will be required, pending the UWV s ruling, to accept the offer and to enter employment with the new employer. If the UWV rules in your favour, your employment with NN can be re-established, if you wish, and NN will resume its efforts of finding you a suitable job. 32

33 If you accept suitable work with another employer but your salary there for the same number of working hours is less than your last-earned salary at NN, the difference will be compensated. During the first year, you will receive 75% of the difference in income, during the second year 50% and during the third year 25%. The amount of the compensation will never be more than 25% of the income you earn with the new employer. The salary paid by an employer outside NN is defined as the sum of: 12x your monthly salary gratuity payments, if applicable holiday allowance 13th month, if applicable pensionable and other allowances (not including overtime compensation) other benefits not considered compensation of expenses made in connection with your work any benefits under the WAO of WIA that you received or were eligible for. Supplements under this scheme can be capitalised and paid out as a lump sum on the last date of your employment Full and permanent incapacity for work If you are deemed fully and permanently incapacitated for work during the first two years of your incapacity, on the basis of a flexible assessment by the UWV, you will be compensated up to 100% of your personal monthly salary (including your Personal Choice Budget and allowance for individual savings), from the 27th to the 104th week of your incapacity for as long as your employment continues. Two years after the beginning of your incapacity for work, NN may take the initiative to terminate your employment agreement, after consulting with you. Occupational disability pension will be added to your benefits under the Income Provision to Persons with Full Incapacity for Work (IVA-benefits) up to an amount equal to 75% of your pensionable annual salary (excluding the cap but including the allowance for individual savings) on the day before your incapacity for work commenced. If you have been incapacitated for 104 weeks, you are eligible for an occupational disability pension under the pension regulations. This will include contribution-free continuation of your pension accrual and a supplement to your occupational disability benefits (if applicable). These rights are considered equivalent benefits as referred to in article 7:673b of the Dutch civil code, even if no occupational disability pension is actually paid. If this applies to you, you will not receive a legal transition payment. 33

34 8 My Pension

35 Your pension is your future income, which is why NN and the trade unions have included pensions in the agreements they ve made. The conditions agreed upon for pensions have been laid down in a Pension Agreement that complies with the Dutch Pension Act. The Pension Agreement has been incorporated into the current CLA. The Pension Agreement for defines the terms and conditions of your Pension Plan. This chapter outlines the main points of the Pension Agreement. The complete text of the Pension Agreement has been published in the HR community. 8.1 Pension plans NN has in place Basic Pension Plan 67, which is administered by NN CDC Pensioenfonds. NN also offers Supplemental IVA Pension, which is underwritten by Nationale-Nederlanden. Benefit plan The Basic Pension Plan 67 complies with the criteria for a benefit plan as defined in the Pension Act, which implies that it includes a formula for the accrual of pension rights. The Basic Pension Plan 67 aims to accrue pension rights according to an average salary scheme, but no guarantees are given. NN is committed only to paying the Pension Plan a fixed contribution, the amount of which is determined each year. Supplemental IVA Pension The Supplementary IVA Pension provides benefits to supplement the IVA, which is paid out by the UWV to employees who become fully and permanently incapacitated for work and whose income at that time is higher than the maximum daily wage as defined in the WIA. Older pension plans The Basic Pension Plan 65, the Defined Contribution Scheme 65 and the transitional pension schemes for 2002 and 2006 have been discontinued. Pensions under these pension plans now accrue only by indexation. 8.2 Basic Pension Plan 67 These pension plans are based on the CDC method, which stands for collective defined contribution and implies that contributions are fixed, while pension accrual is based on an average salary scheme where possible. Main features of the contributions: The contribution is intended solely for the acquisition of pension rights on behalf of members in that same year. The contribution is not to be used for avoiding imminent reductions of accrued pension rights and/or to provide compensation for pension cuts imposed in the past. If the contribution is insufficient in any given year, the envisaged acquisition of 1.875% accrual for old age pension is adjusted downward in that same year. Additional contributions are not made. By paying its contribution, NN is discharged of all its financial obligations with regard to pension. It has been explicitly agreed that NN will not pay any additional contributions to the Pension Fund, while the Pension Fund will not repay any funds to NN. Indexation is solely dependant on the level of the Pension Fund s capital. If indexation cannot be granted up to the agreed level, NN will not make any additional contribution, nor will the level of its contribution be raised Participants Membership of this Pension Plan is mandatory if your employment is covered by the CLA. Your Pension Plan membership starts on the first day of your employment. 35

36 8.2.2 Pensionable salary The following components of your income accrue pension: (up to the annually determined statutory maximum - see article 5.5): Your monthly salary Pensionable elements of your Personal Choice Budget (16.33%) Gradually reduced personal allowance Franchise level Only pensionable salary that exceeds a certain threshold accrues pension; the non-pensionable income below the threshold is referred to as the franchise. The level of the franchise is adjusted every year and is always raised to the minimum level required by the Wages and Salaries Tax Act (Wet op de loonbelasting 1964). The level of the franchise applies if you work 36 hours a week on average. If you work fewer than 36 hours a week, the franchise is lowered accordingly. The current franchise level can be found in the HR community Types of pension Old age pension Your monthly old age pension accrual amounts to 1.875% of your pensionable salary, net of 1/12th of the franchise. Partner pension and orphans pension Your monthly partner pension accrual amounts to 70% of your old age pension accrual for that month. For each of your children, a monthly orphans pension accrues at 14% of your old age pension. Partner pension and orphans pension benefits are paid out as from the first day of the month following your death. Your partner will receive partner pension benefits until the month in which he/she dies. Each of your children will receive orphans pension benefits until the month in which they turn 18. If and as long as your child takes part in full-time education or lives at your home and cares for the surviving partner, he/she will continue to receive orphans pension benefits between the age of 18 and 27. Your partner is the person to whom you are married or with whom you have entered into a registered partnership. This means that you can also apply for partner pension on behalf of the person with whom you are cohabitating without being registered partners, although there are some additional requirements in such cases. These additional requirements can be found in the pension regulations. Additional partner pension and orphans pension if you die while employed If you die while you are still employed, any partner pension and orphans pension already accrued will be supplemented up to 70% and 14%, respectively, of the old age pension you could have built up if you had stayed employed until your 67th birthday. The calculation is based on the average amount of old age pension that you built up over the twelve months preceding your death. 8.3 Pension accrual in the event of occupational disability If you become incapacitated for work and, as a result, you are entitled to benefits under the WGA, IVA or WAO, you will continue to accrue pension rights, in full or in part, as from the time that you receive these benefits. You will no longer have to pay the employee s share of the contribution. The UWV will determine what percentage of your pension accrual will be contribution free, depending on the degree of your occupational disability. 36

37 Degree of occupational disability (according to the UWV) Percentage of contribution-free pension accrual 0-35% 0% 35-45% 40% 45-55% 50% 55-65% 60% 65-80% 80% % 100% Your contribution-free pension accrual is based on your average pension accrual over the twelve months preceding your first day of illness. If the degree of your occupational disability changes, the level of your contribution-free pension accrual will change accordingly, based on your average pension accrual over the twelve months preceding your first day of illness. Moreover, any pensionable salary you receive for hours that you are still working accrues old age pension. The pensionable-income threshold will be adjusted to the number of hours that you actually work. You will, however, have to pay the employee s share of the contribution for pension accrued over these hours. This article on pension accrual during occupational disability does not apply if the first day of your incapacitation was prior to 1 December In that case, the transitional conditions of the pension regulations apply. 8.4 Pension contribution The total amount of contribution needed for the accrual of pension rights in a given year is calculated in advance for each year. The total contribution is expressed as a percentage of the pension base. The calculation method for this percentage is set out in a template agreed upon by the CLA parties. Employee s share of the pension contribution As long as your pension rights accrue, you are required to pay a share of the pension contribution. It has been agreed that the employee s share of the pension contribution will be one third, while NN will pay two thirds. NN will withhold your share of the pension contribution from your gross salary. The calculation of your share is based on your pension base. This is your pensionable salary net of the franchise. Your pension base and your share of the contribution are calculated using the indexated franchise level of the 2014 pension plan ( 15,000). Your share of the contribution is equal to one third of the total contribution, up to a maximum of 7.5% of your pension base. It has been agreed that the employee s share of the contribution will increase gradually over the period 2016 through The increase will be maximised as follows: 37

38 Year Employee s share of the contribution % % % % % 8.5 Supplemental IVA Pension Supplemental IVA Pension is an insurance for employees who become fully and permanently incapacitated for work and whose pensionable salary exceeds the maximum daily wage as defined in the WIA. The supplemental IVA Pension is underwritten by Nationale-Nederlanden. The conditions of the supplemental IVA Pension are determined by Nationale-Nederlanden. Who is insured? You are insured for Supplemental IVA Pension as from the moment that your pensionable salary as defined in article exceeds the maximum daily wage as defined in the WIA. Occupational disability pension The insurance provides you with occupational disability pension amounting to 75% of your pensionable salary, inasmuch as this exceeds the maximum daily wage as defined in the WIA. Benefits You receive Supplemental IVA Pension as from the time that the UWV pays you IVA benefits and you have been incapacitated for 104 weeks. Supplemental IVA Pension is based on the pensionable salary that you earned (up to the statutory maximum) on 1 January of the year in which your IVA benefits commenced. Benefits are discontinued when you cease to receive IVA benefits from the UWV. Supplemental IVA Pension benefits are in any case discontinued when you turn ANW-gap insurance If you want additional insurance because your partner will not be eligible for ANW benefits after your death, you can participate in the collective ANW-gap insurance that NN has taken out with Nationale-Nederlanden. You will have to pay most of the premium for this insurance yourself. NN pays 20% of the premium. The premium is withheld from your gross monthly salary. 38

39 9 My Organisation

40 This chapter contains several of the agreements that have been made regarding NN s organisation, our external employees, schemes for pensioners and the third year of State unemployment benefits. The CLA parties have agreed to initiate a study 9.1 Change processes During the term of this CLA, parties will consult stakeholders to initiate a study into the way in which NN could implement organisational and other change processes flexibly and dynamically to ensure that employees recognise them and take an active part in these changes. 9.2 External staff NN will enhance its flexibility by deploying external staff when capacity needs fluctuate, particularly in jobs that are relatively easy to perform. Moreover, there are certain specialist tasks that NN does not want to or no longer wants to perform, which will be performed by external staff. Flexibility must be maintained to ensure the quality and quantity of staff. In this regard, the CLA parties have agreed the following terms: parties will consult the Central Works Council during this CLA period with a view to setting up a future-proof policy for hiring external staff. external staff is important to NN s operations. They will be engaged in the organisation when possible, just as internal employees. temporary workers who have been working at NN for over a year will annually be informed and consulted about their performance, professional development and personal situation. NN will make available an annual development budget of 350 for each of these employees. as part of its employer s responsibility, it is NN s policy to limit the long-term deployment of external staff and to avoid the use of payroll constructions. 9.3 Transitional regulation for employers contribution to collective health care (ZKV) for pensioners When it was implemented, this scheme was meant to compensate for a reduction of the employers contribution to the individual health care insurance that was in place at the time. When basic health insurance was introduced in the Netherlands in 2006, the reason to offer this guarantee scheme no longer applied. The scheme was discontinued for employees in Parties have agreed to discontinue the scheme for pensioners on 1 May The Association of Senior ING Employees has been consulted about this and has given its approval. The scheme will be settled as set out in the table below. The amount of the settlement is calculated based on the gross monthly ZKV contribution for March Age on 1 May 2016 Number of months Up to to to and older Transitional regulation for household help for pensioners Since 1 January 2006, we have had in place a transitional regulation for a group of current and former employees who were entitled to compensation for household help in Meanwhile, a large portion of the compensation offered under this scheme no longer applies, as it has been transferred to the Health Care Insurance Act (Zorgverzekeringswet) and the Social Support and Provision Act (Wet Maatschappelijke Ondersteuning). 40

41 The CLA parties have agreed to discontinue the scheme on 1 July The Association of Senior ING Employees has been consulted about this and has given its approval. Former and current employees who submitted a claim under this scheme in 2015 will be compensated by an amount equal to 36 times the average monthly amount claimed for the years 2013, 2014 and Third year of State unemployment benefits (WW) The CLA parties have agreed to make every effort to compensate the current duration and layered structure of the third year of State unemployment benefits (incl. WGA), in line with the agreements laid down in this respect in the Social Accord of April Following the reaction given by the Minister of Social Affairs and Employment to the advice of the Dutch Social and Economic Council in the document entitled Rol sociale partners bij toekomstige arbeidsmarktinfrastructuur bij WW en inrichting WW ( Role of the social partners in the future of labour market infrastructure and State unemployment benefits ) and after the possible advice of the Joint Industrial Labour Council (STAR) on this matter, with due regards to the advice and recommendations given by the STAR on 24 December 2013, 11 July 2014, 17 April 2015 and 24 November 2015, the parties will consult one another with a view to agreeing on the contents of private insurance to supplement State unemployment benefits, which would enable continuation of the current system for State unemployment benefits. 41

42 10 My Trade Union

43 Our process of co-creating agreements clearly demonstrated that solid employment conditions are of great value and significance. NN considers it essential to discuss its package of employment conditions with parties who are familiar with the organisation, the sector and our employees, with a view to making responsible decisions together. Given the need for us to reposition our strategies and to adjust to the reality of the economic circumstances, we must work together intensively, challenge each other s principles and policies and strike a good balance between the interests of the employees and those of NN. This is why the CLA parties wish to stress the importance of employment relationships based on equality in this CLA Role of the trade unions at NN NN and the trade unions negotiate the terms of a new CLA. Agreeing upon a CLA or a social plan is generally a very intensive process, during which the CLA parties are in close contact with each other. CLA parties also regularly discuss numerous topics that concern you and your colleagues, as well as progress made with respect to agreements. The trade unions represent the interests of their members directly and of all employees indirectly, since agreements made with the trade unions are binding for the entire company Information and membership It is in the interest of the trade unions and NN if employees are well represented. The trade unions are given the opportunity to explain their work and its relevance and to recruit new members actively. SAM has a community with information about the trade unions and provides links to their websites. NN encourages employees to join one of the trade unions involved in this CLA. During certain months in 2016, 2017 and 2018, NN will therefore pay the first year of membership for employees Disclosure and confidentiality NN informs the trade unions about proposals for major reorganisations that may affect the employment situation and/or employment conditions, at the same time that it informs the Works Council. The trade unions and NN must treat with confidentiality any information regarding which the presenter of the information makes a reasonable request for confidential treatment Facilities The trade unions are entitled to make use of the facilities of NN, within reason and in due consultation with NN. Examples include conference rooms and communication tools. Subject to the approval of NN, you are allowed to perform special duties at the request of the trade unions or take part in talks as a trade union member. You and your manager make agreements about the time you will devote to this Protection If you are a representative of a trade union, the management concerned within NN will ensure that your position as an employee is not compromised. Your rights and obligations under your employment agreement should not be affected by your position as a trade union representative Employers contribution In 2016, 2017 and 2018, NN will pay the joint trade unions an amount of 13 per employee, net of the contribution made by the Association of Insurance companies. 43

44 10.7 Funding During the term of this CLA, NN will allocate to each of the trade unions an amount of 30,000 per year. This amount is mainly meant to be spent on projects and work aimed at improving NN employees value in the labour market. The amount may also be allocated to international solidarity, labour relations, support of voluntary care workers and/or activities relating to co-creation. The trade unions will report on their expenditures to NN. The trade unions are also free to offer their services to NN, at regular purchase conditions, to help implement the terms agreed in the CLA HR schemes The CLA topics listed below are detailed in the HR community. Special leave Gratuity for anniversaries Payment on death Meal allowance Occupational disability schemes (general conditions, schemes and supplements for cases starting either before 1 January 2004 or after 1 January 2004) Facilities for active Trade Union members Pension Agreement 2015 Costs of moving Modifications will be subject to agreement with the trade unions. 44

45 11 Our Social Responsibility