Aegon PPI B.V. Execution Agreement Graduated scale 4%

Transcription

1 Aegon PPI B.V. Execution Agreement Graduated scale 4%

2 Preface The execution agreement contains the agreements between you as the employer and us as the pension provider. The agreements concern the execution of the pension agreement that you conclude with each employee separately. We have laid out the details of these agreements in pension regulations. The effective date of the execution agreement can be found on your statement of approval Pension Subscription. You as the employer Execution agreement Pension agreement Pension regulations We as the pension provider Your employee This document is an unofficial translation of the Dutch original and is provided as a courtesy only. In the event of any disparity between this version and the original Dutch version, the Dutch version will prevail. No rights may be derived from this unofficial English translation. All our legal documents can be found on our site under the tab Documenten (Documents). Explanations of terms Below you can find the terms and an explanation of these terms. It is important to read this first. For pension terms, see annexe 1, Explanation of terms. You are The employer who concludes this execution agreement with us. We are Aegon PPI, Aegon Leven and Aegon Schade. Together, we are the pension providers of your pension scheme. If we refer to one of the pension providers in the regulations, we refer to this one pension provider only. Pension These are the pensions paid out after the retirement date, namely: the retirement pension and, if the person entitled to pension dies after the retirement date, a partner s pension and an orphan s pension. Where Pension is printed with a capital P, we refer to the retirement pension and the partner s pension and orphan s pension after the retirement date. 2

3 Dependant s Pension These are the pensions that the participant s partner and children receive after the participant s death before the retirement date. The Dependant s Pension consists of a partner s pension and an orphan s pension. Where Dependant s Pension is printed with a capital D and P, we refer to the partner s pension and orphan s pension when the participant dies before the retirement date. Investment pension Investment pension is invested using the defined contribution of the participant. Therefore the participant invests for his pension. On the retirement date, the value of these investments is used to purchase Pension. The level of Pension depends on the value of the investments on the retirement date, among other things. Guarantee pension In case of Guarantee pension the participant - before the retirement date - purchases Pension. Guarantee pension is an insurance that gives certainty beforehand on the level of Pension. 3

4 Table of contents of the execution agreement 1. Starting points The pension providers Participation of the pension scheme 5 2. Obligations Our obligations Your obligations Rates and costs Pensionable earnings Premiums and costs for the employer Costs for the (former) participant Premium payment Premiums Current account Direct debit Premium due date Premium arrears A change in circumstances Amending and cancelling the execution agreement Adjustments due to index-linking of amounts Amending the execution agreement Terminating the execution agreement Final provisions Formal provisions Confidentiality and privacy Complaints 23 Annexes Annexe 1 Explanation of terms Annexe 2 - Digital exchange of information Annexe 3 Rates tables Annexe 4 Group transfer of accrued benefits on termination of execution agreement Annexe 5 Conditions of insurance Annexe 6 Pension regulations Please note All annexes constitute an integral part of the execution agreement. 4

5 Chapter 1. Starting points 1.1. The pension providers Cooperation Aegon PPI is the pension provider for the defined contribution scheme. For pensions that need to be insured, Aegon PPI has chosen to collaborate with: Aegon Leven Aegon Schade insurer if the participant opts for Guarantee pension. insurer for the Dependant s Pension. insurer for the ANW shortfall pension. insurer for waiver of premium in the event of disability. Aegon PPI has chosen these two insurers for their favourable rates, administrative possibilities and their sound financial basis. Aegon PPI s management board will periodically assess whether these two insurers meet the criteria used. The outcome of this assessment will determine whether the collaboration will be continued. One point of contact Aegon PPI acts as authorised agent for Aegon Leven and Aegon Schade. This allows us to offer you a comprehensive pension scheme whilst you have one point of contact for your pension scheme, namely Aegon PPI Participation of the pension scheme Participant Participant is the person who: - is an employee in the service of the employer as named in this pension scheme; and - has received a pension agreement which he has accepted; or - is no longer an employee, but the premium for his pension entitlements has been waived because he is disabled; - is no longer an employee, but receives a WW (Unemployment Act) benefit immediately following this employment. From the moment of participation, the participant accrues pension entitlements. The pension entitlements are: - a defined benefit. The defined benefit we use for Investment Pension. Of for Guarantee Pension if the participant chooses this. For the following forms of pension, insurance will be taken out: - the Dependant s Pension if the participant has a partner and/or children; - the ANW shortfall pension; this is optional; - waiver of premium payment in the event of disability of the participant; In the event of disability of the participant, Aegon takes over the payment of the premium for the pension entitlements. You can read about this in the pension regulations in the chapter Disability and in the annexe Conditions of Insurance. 5

6 Acceptance We will accept the participant for all of the above insurance policies without taking into account his health situation. Any increases of the insurance policies arising from the pension scheme will therefore also be accepted without taking into account the participant s health situation. The entitlement to Dependant s Pension can also commence at a later stage, namely if the partner has a partner and/or children only after the date on which his participation commences. Then, also, the participant will be accepted without taking into account his health situation. In some cases we can decide not to accept an employee for the insurance. You read about this in the pension regulations, paragraph 6.6 Acceptance of insured entitlements. Restrictions to acceptance There are two situations in which we can refuse acceptance of the insurance based on the participant s health situation. Or to accept it, but on different conditions or rates. These restrictions to acceptance only apply if the death risk or disability risk increases for us as a result of the participant s health situation. The restrictions to acceptance apply in the following situations: - If your employee goes back on refusing the types of pension for which we effect the insurance. Refusing is only possible if you have been recognised as a conscientious objector by the Social Insurance Bank (SVB); - If your employee opts for the ANW shortfall pension at a later point in time than on becoming a participant to the pension scheme. In these two cases these employees are referred to as persons regretting their initial decision. Former participant A former participant is the person who: - is a former employee of the employer as named in this pension scheme; and - for whom the employer no longer pays any premium; and - who still has pension entitlements. For reasons of legibility we use he or his for the (former) participant. This is not to discriminate and also refers to she or her. 6

7 Chapter 2. Obligations 2.1. Our obligations We execute the pension scheme in accordance with the pension agreement, as described in the pension regulations; see annexe 5, Pension regulations. The costs of execution are 60 per participant per year (2016). For this sum we perform the activities stated in the tables below. For you, the employer Recording the execution agreement in writing in the Dutch language. Entering your pension scheme in our accounting systems. Processing incoming group transfers of accrued benefits, in accordance with our regular processes. Giving access to and maintaining Aegon BeheerNet. Via this portal you receive information about the pension scheme and you can pass on changes. See also annexe 2 Digital exchange of information. Supporting Aegon BeheerNet. Calculating and collecting premiums and/or single premiums, keeping current account(s) for the payment transactions, providing modification statements and current account statements via Aegon BeheerNet. Sending digital invoices. Paying out the value of the investments for purchasing Pension. The payment is made to the insurer chosen. Keeping records of the investments. Providing information in case of changes to the pension scheme. Processing outgoing group transfers of accrued benefits, in accordance with our regular processes. Providing information on changes in legislation and regulations that have consequences for the pension scheme. Issuing SLA reports: - status transfer of accrued benefits - modifications For the participant Providing the initial letter to each new participant. Providing access and maintaining Mijn Aegon. Via this portal the participant receives information about his investments and personal pension situation. If desired, in the English language. See annexe 2, Digital exchange of information. Providing a digital version of the pension regulations in the Dutch language. 7

8 Providing advice and information digitally, where applicable, in accordance with Section 52 of the Pensions Act. Providing the annual digital Uniform Pension Overview. Arranging any medical guarantees for persons regretting their initial decision (costs are for the persons regretting this initial decision). Processing salary increases as at 1 January. Processing changes of part-time percentage. Processing changes to partner and child data. Implementing request for switching and/or adjusting. Determining, administering, purchasing and selling the investments. Administrative processing on reaching retirement, also transfer of assets. Administrative processing on death. Administrative processing in the event of disability. Administrative processing in the event of resignation or dismissal. Providing information in case of changes to the pension scheme. Providing data to the Pensions register. Providing information (e.g. about commencement of his pension) at the request of the participant. Carrying out extra deposits. Commutation of small pension. Providing Assesment letter for participants in Free Investing For the former participant On request, providing the pension regulations in the Dutch language. Providing advice and information digitally, where applicable, in accordance with Section 52 of the Pensions Act. Providing the Uniform Pension Overview, once every five years. Processing changes to partner data and child data. Implementing request for switching and/or adjusting. Determining and administering the investments. Administrative processing on reaching retirement, also transfer of assets. 8

9 Administrative processing on death. Outgoing individual transfer of accrued benefits. Providing information in case of changes to the pension scheme. Providing data to the Pensions register. Providing information (e.g. about commencement of his pension) at the request of the former participant. Commutation of small pension. For the person entitled to pension Providing the pension regulations and the annual pension statement for tax purposes in the Dutch language. Processing changes in partner data and child data. Providing the annual digital Uniform Pension Overview. Providing information (e.g. about commencement of his pension) at the request of the person entitled to pension. For the former partner On request, providing the pension regulations in the Dutch language. Providing a Uniform Pension Overview, once every five years. Processing changes to partner data and child data. Providing information (e.g. about commencement of his pension) at the request of the former partner. Costs for additional services For executing activities not mentioned above, costs will be charged. The level of these costs depends on the activities we will carry out for you. You will receive an indication of costs beforehand. The hourly rate for production work is and the hourly rate for specialists starts from These rates can also be found on After completing the activities we will determine the final costs and will send you a digital invoice for this amount. Delivery periods We apply a delivery or processing period of fifteen working days. The period starts at the moment you have provided the information in accordance with the guidelines in this chapter. The period of fifteen days applies to the following changes: - salary - new participants - participants leaving the employer s service - changes in the cohabitation, with the exception of equalisation of pension in the event of divorce 9

10 The delivery or processing period does not apply if we temporarily do not process changes due to: - a change to the pension scheme - a change of the rates or conditions - statutory measures - the year-end closing, mid-december (until the 2 nd week of the new year at the latest) - a change that has not yet been processed Within 3 months after the start date of the pension scheme, and/or within 3 months of employment of a new employee, you have to register the employee(s) in BeheerNet. If the Supervisor imposes a penalty due to late registration we have the right to claim the penalty from you. Services on termination of the pension scheme If you cancel the pension scheme, the execution agreement ends. The pension agreement between you and the participants continues to exist and must be transferred to another pension provider. At your request, we will provide the following data to your new pension provider: - (former) participants - (former) partner(s) - employment - salary - cohabitation - divorce - equalised pension entitlements - balance of the pension investment account - commuted value of the Guarantee pension - pension entitlements for which a (single) premium has been paid We provide these data in accordance with the standard applicable at that point in time. We will charge you costs for providing other data. The level of these costs depends on the activities that we carry out for collecting and providing these data. You will receive an indication of costs in advance. The hourly rate for production work is and the hourly rate for specialists starts from These rates can also be found on Additional services for which we charge costs are for example: - incoming group transfer of accrued benefits, tailor-made (different format from Aegon format) - outgoing group transfer of accrued benefits, tailor-made (different format from Aegon format) - support BeheerNet, tailor-made - extra information at request of employer After completing the activities we determine the final costs and send you a digital invoice for this amount. Correction costs The costs incurred by the adviser on the instructions of the employer as a result of shortcomings in proposals, quotes and other documents of Aegon PPI arising from the execution agreement, are paid by Aegon PPI. This concerns shortcomings that are attributable to Aegon PPI. The shortcomings will not be challenged by Aegon PPI. The costs will only be paid out if the employer and its adviser comply with the Correction costs scheme, and have followed the procedure laid down in this scheme. The Correction costs scheme can be found on Aegon PPI 10

11 reimburses the employer for an amount based on the adviser s breakdown of the hours spent. The hourly rate reimbursed by Aegon is the rate that the adviser has published on his website, however, with a maximum of 150. Naturally it will be assessed whether the breakdown of hours spent is reasonable Your obligations The pension scheme is part of the employment conditions You offer your employee the pension scheme as part of the total package of employment conditions. And you enter into a pension agreement with your employee. The pension agreement states that the details of the pension scheme have been worked out in the pension regulations. Your employee may only accept or refuse the pension scheme in combination with the other employment conditions. You are obliged to insure the pension entitlements and to maintain this insurance with us. If your employee has been acknowledged as a conscientious objector by the Social Insurance Bank (SVB), the employment conditions can be accepted without the pension scheme. Cooperating in a proper execution We base the insurance on the data that you and/or your employee provide. Or the data provided to us on behalf of you or him or her, for example by the UWV. If these data are provided by you incorrectly, not at all or not in time, the pension entitlements of the employee in question will not be, or not be fully, insured. In that case the administration of the pension entitlements is limited to the level that is based on the information that we most recently received from you correctly and in full. If you have not registered the employee, no insurance will come about. The insurance will be taken out as yet: - if you provide the correct information as yet and pay the costs of insurance of the risk that are due fully and timely, or if and in so far as the law or an irreversible judgment of the court does not allow us to reduce or refuse the cover. You must also compensate us for the damage incurred as a result of failure to provide data necessary to timely effect insurance for the correct pension entitlements of your employees, or if you do so incorrectly or not in time. A new participant for example must receive his or her initial letter within three months. To do so, we need data from you. The Financial Markets Authority (AFM) may impose a fine for non-timely provision of the initial letter. This fine will then be for your account. Or we incur extra execution costs because data are to be entered in our administration with retroactive effect. Positive and negative price differences are for your account. Providing incomplete or incorrect data by your employee can have consequences for the pension. This can be found in the pension regulations. The data are to be supplied All data and evidence we need to process the pension agreement are to be supplied timely. This does not apply to the data the former employee should supply himself according to paragraph 2.4 of the pension regulations. The data are to be supplied via Aegon BeheerNet - accurately and completely - before the date of modification - in chronological order If you do not provide the data in a chronological order, we will charge costs for processing. The hourly rate for this is

12 Via Aegon BeheerNet you provide us with the following participant data as soon as you are aware of the situation: - personal details - civil status data - date of commencement and termination of employment - salary and part-time percentage - death (always to be passed on immediately) For flexible payments such as exchange, advancing and deferring pension you must inform us no later than on the last day of the period stated in the pension regulations. We will charge you for any changes that you supply after the actual date of the change which consequently have a negative financial effect (as this involves extra work) on us. 12

13 Chapter 3. Rates and costs 3.1. Pensionable earnings In determining the premiums the pensionable earnings are the main factor. Pensionable earnings are the pensionable salary minus the state pension offset. The pensionable salary is the salary as stated by the employer. In your Pension Agreement you will find the salary elements that are taken into account. In 2016, the maximum pensionable salary is 101,519. The state pension offset amounts to 12,953. Example 1 A participant earns 2,000 gross per month and his holiday allowance is 8% over twelve monthly salaries. His pensionable salary is then 2,000 x 12 x 1.08 = 25,920. His pensionable earnings are: 25,920 -/- 12,953 = 12,967 Furthermore the pensionable salary may increase by a maximum of 15% per year Premiums and costs for the employer Defined contribution for the Pension The defined contribution for the Pension is determined using Graduated scale II, 4% from the graduated scales order of This is a net graduated scale. This means that we will not deduct any execution costs and insurance premiums from the defined contribution. You have chosen a percentage of the graduated scale. In the table below you can see the percentages used for calculating the defined contribution. From age R 100% R 95% R 90% R 85% R 80% R 75% R 70% R 65% R 60% R 55% R 50% 15 4,10% 3,90% 3,69% 3,49% 3,28% 3,08% 2,87% 2,67% 2,46% 2,26% 2,05% 4,70% 20 4,70% 4,47% 4,23% 4,00% 3,76% 3,53% 3,29% 3,06% 2,82% 2,59% 2,35% 4,70% 25 5,70% 5,42% 5,13% 4,85% 4,56% 4,28% 3,99% 3,71% 3,42% 3,14% 2,85% 4,70% 30 6,90% 6,56% 6,21% 5,87% 5,52% 5,18% 4,83% 4,49% 4,14% 3,80% 3,45% 4,70% 35 8,40% 7,98% 7,56% 7,14% 6,72% 6,30% 5,88% 5,46% 5,04% 4,62% 4,20% 4,70% 40 10,20% 9,69% 9,18% 8,67% 8,16% 7,65% 7,14% 6,63% 6,12% 5,61% 5,10% 4,70% 45 12,50% 11,88% 11,25% 10,63% 10,00% 9,38% 8,75% 8,13% 7,50% 6,88% 6,25% 4,70% 50 15,40% 14,63% 13,86% 13,09% 12,32% 11,55% 10,78% 10,01% 9,24% 8,47% 7,70% 4,70% 55 18,90% 17,96% 17,01% 16,07% 15,12% 14,18% 13,23% 12,29% 11,34% 10,40% 9,45% 4,70% 60 23,60% 22,42% 21,24% 20,06% 18,88% 17,70% 16,52% 15,34% 14,16% 12,98% 11,80% 4,70% 65 27,70% 26,32% 24,93% 23,55% 22,16% 20,78% 19,39% 18,01% 16,62% 15,24% 13,85% 4,70% 4,7% fixed By multiplying the pensionable earnings of a participant by the percentage belonging to his age, you can calculate his defined contribution. Each year, on 1 January, we determine the defined contribution again. The age that we use is the age of the participant on 31 January. Example 2 Calculating the defined contribution The participant from example 1 is 42 years of age. The percentage of defined contribution at the age of 42 years is 10.20%. For this participant you pay per year: 12,967 x 10.20% = 1, This premium is exclusive of any costs and surcharges. 13

14 Premium for the Dependant s Pension The premium for the Dependant s Pension can be calculated using the rates table in annexe 3, Rates tables. The age of the participants is a determining factor here. The age that we use is the age of the participant on 1 January, the date of participation to the scheme or the date of change. We calculate this age in whole months. Therefore, if the participant is aged 42 years and 4 months, the annual premium that you pay for this participant is: eight months the rate for a person aged 42 years plus four months the rate of a person aged 43 years. The rates table shows gross rates. This annexe also shows the bases of the rate and the surcharges that we charge. The premium is calculated by multiplying the Dependant s Pension by the rate corresponding with the sex and age of the participant, to which is added the interest rate adjustment. The interest rate adjustment is charged on top of this. If the partner is more than 10 years younger than the participant, the basic rate of the partner s pension will be increased. The increased rate can be found by dividing the basic rate by a factor smaller than 1. The factor equals 1 minus 0,025 for every full year the partner is more than 10 years younger than the participant. The level of - the entitlement to - Dependant s Pension is the number of years of service multiplied by the pensionable earnings. This in turn is multiplied by 1.16% for the partner s pension and 0.232% for the orphan s pension. The number of years of service is the number of years and months from the moment of entering service until the standard retirement date, with a maximum of 52 years. Any part of a month is disregarded. How we calculate the partner s pension and the orphans pension you can read in the pension regulations. Beside the pensionable earnings are important: - The percentage you have chosen for the partner and orphans pension. - A yearly, lifelong increase for the partner s pension commenced of 2% if you have chosen this. Example 3 The participant from the examples 1 and 2 is a male participant with a partner. He has only recently become a participant and the standard retirement date is 67 years. Therefore he has = 25 years of service. The level of the partner s pension then is 12,967 (pensionable earnings) x 25 x 1.16% = 3, gross per year. This is the lifelong pension that his partner receives if he dies before the retirement date. Annually you pay for this partner s pension: 3, x < > = This premium is exclusive of any costs, interest rate adjustments and surcharges. For each participant with a partner you pay a risk premium for the Dependant s Pension. You pay premium for both the partner s pension and the orphan s pension. It makes no difference whether the participant has any children. For participants with children and no partner, you only pay the risk premium for the orphan s pension. By risk premium we mean that no value is accrued with the premium. Therefore, only when the participant dies will his dependant(s) receive pension benefits. An entitlement on a risk basis will therefore lapse as soon as the participant no longer participates in the pension scheme. 14

15 Interest rate adjustment In setting our rates to calculate the premiums, we start from an annual actuarial interest rate of 3%. The actual interest rate on the capital market fluctuates and will not always be 3%. Using the interest rate adjustment, we adjust the premiums to the actual interest rate. If the (average) interest rate on the capital market is higher than 3%, this interest rate adjustment implies a discount on the premium. If the average interest rate is lower, the adjustment involves a premium surcharge. We determine the interest rate adjustment annually and this rate then applies from 1 January up to and including 31 December of that year. In 2016, the surcharge is 25.6%. Premium for the ANW shortfall pension The ANW shortfall pension is a pension that the participant is free to choose. The premium for the ANW shortfall pension is calculated using the rates table in annexe 3, Rates tables. This annexe also shows the bases of the rate and the surcharges we charge. You pay one-year risk premiums until the participant reaches the age of 60 years. These risk premiums are set again each year in accordance with the age of the participant and that of his partner on 1 January of the year in question. If the participant is aged 60 years or older, you pay level risk premiums. From the participant s age of 65, you no longer pay any premium. If the participant has been insured until the age of 65, the ANW shortfall pension continues to be insured until his partner has reached the state pension age. The rates table shows the gross rates. The premium is calculated by multiplying the partner s pension by the rate corresponding with the sex and age of the participant. For the age of the participant we start from whole years. This is the age on the date that the insurance is taken out or amended and subsequently each year as at 1 January of the relevant year. On top of this comes the interest rate adjustment. Interest rate adjustment In setting our rates to calculate the premiums for the ANW shortfall, we start from an annual actuarial interest rate of 3%. The actual interest rate on the capital market fluctuates and will not always be 3%. Using the interest rate adjustment, we adjust the premiums to the actual interest rate. If the (average) interest rate on the capital market is higher than 3%, this interest rate adjustment implies a discount on the premium. If the average interest rate is lower, the adjustment involves a premium surcharge. The interest rate is adjusted annually and applies from 1 January up to and including 31 December of that year. In 2016, the surcharge is 25.67%. Premium for waiver of premium in the event of disability The premium for waiver of premium in the event of disability is 3.90% of the net premium for Pension. The level of this premium is calculated by multiplying the net premium for Pension by If a fixed defined contribution of 4.7% is involved, the premium for waiver of premium in the event of disability amounts to 2.70% of the net premium. For the Dependant s Pension the premium for a waiver of premium is not calculated separately, but is included in the premium of the Dependant s Pension. A waiver of premium for the ANW shortfall pension is also insured. Costs of execution You pay 60 per participant per year on execution costs. 15

16 Special execution costs You pay: per incoming individual transfer of accrued benefits; for processing of equalisation of pension on divorce; for processing of equalisation of pension and conversion of pension on divorce; - 15,50 per year per participant who wishes to receive his information by post instead of digitally Costs for the (former) participant Investment costs All costs related to investing are for the account of the (former) participant. These costs are deducted from the defined contribution, the invested value and/or are settled with the return on his investments. In the pension regulations you can find the details of how this works. Interest guarantee premium and risk premium individual transfer of accrued benefits for Guarantee pension The level of the interest guarantee premium applies from 1 January 2016 up to and including 31 December From then on, it will be determined again. For 2016 it amounts to 51.48%. We charge a risk premium that is deducted from the defined contribution. This risk premium is to prevent that additional payments need to be made in the event of a statutory (individual) transfer of accrued benefits. For 2016, the level of this risk premium is 0.75%. 16

17 Chapter 4. Premium payment 4.1. Premiums You are required to pay the premiums as long as the participant is alive and until the individual participant s personal retirement date at the latest. Where in this execution agreement reference is made to premiums this also includes single premiums. Premiums for new insurances and increases of current insurances with retroactive entry date, you pay a lump sum Current account All amounts due are entered in one or more current account(s) that have been opened in your name. Via Aegon BeheerNet you receive monthly settlement statements showing the balance. You also receive monthly a digital invoice stating the amounts you have to pay. If an amount entered in current account has not been paid on the due date at the latest, we will charge or pay interest from this day. If you owe us money, you pay 3% interest. If we owe you money, you receive 1% interest over the amount. This interest percentage can be adjusted by us annually. The balance of the credited and debited amounts in current account is at all times immediately payable. At all times the parties are held to pay any amounts pursuant to the execution agreement. Also if the other party did not require payment previously. We determine which claim(s) have been settled with your payment Direct debit If you have given us an authorization, the amount due will be collected via direct debit. Around the 21 st of each month we inform you about the amounts we debit to your account as per the first day of the next month. We do this by sending you an to the address stated by you. It is your responsibility to provide us with the correct address. This notification can also be found in Aegon BeheerNet, as well as the given authorization for direct debit collection. The balance collected per the first day of the next month can deviate from the current account balance. There will be a difference when we have processed a change with impact on the current account after sending the notification. Or when we have received a payment. The difference in amount will be taken into account in the following direct debit collection. Until that time, interest will be calculated as described under Current account Premium due date Every year, we set the premiums again. The premiums thus set for the month of January are the premiums for all months of that calendar year. The premiums are to be paid monthly in advance on the fixed premium due dates. This is the first working day of the month. If the commencement date of the pension scheme is not 1 January, we determine the annual premium on the commencement date of the pension scheme. At all times the commencement or termination of the pension scheme is the first day or the last day, respectively, of a month. 17

18 Premiums paid by you for a participant after the date of his resignation or dismissal will be refunded to you. This also applies to the premiums that you paid for the Dependant s Pension over a period after the participant s death or date of divorce Premium arrears If any premium arrears require that the accrual of pension is stopped, we will inform you and the participant. Termination of the accrual takes place by creating a paid-up policy and having the pension entitlements lapse without paid-up value. After creating a paid-up policy, the Dependant s Pension is for example no longer insured. Creating a paid-up policy also means that investments for Investment pension will no longer be purchased. And that the level of the annual benefit of Guarantee pension no longer changes, except if any supplement is granted. From three months after a notification, we may terminate the pension entitlements in this way. A paid-up policy can be created with retroactive effect up to a maximum of five months prior to notification to the participant. We maintain the death risk and the disability risk during the first three months after said notification A change in circumstances In case of a serious change of circumstances you may reduce or stop the payment of pension premiums, to the extent that your business interests so require. For example in the event of a suspension of payment. This possibility to reduce or stop payment of pension premiums must be laid down in the pension agreement. 18

19 Chapter 5. Amending and cancelling the execution agreement 5.1. Adjustments due to index-linking of amounts The amounts in this execution agreement can be adjusted by us annually. We use an index figure for this. The index figure is based on the negotiated wages per month including special remunerations (total) and the consumer price index (all households). These data are provided by Netherlands Statistics (CBS). We follow the changes set by CBS. As a standard procedure the index-linking takes place on 1 January Amending the execution agreement We can make the following adjustments to this execution agreement: - an adjustment necessitated by a statutory amendment; - an adjustment based on a judgment of the court or an instruction or change of policy of the Dutch Central Bank (DNB) or Financial Markets Authority (AFM). - an adjustment to the state pension offset; this is a change of the basis for calculating pension; - an adjustment of the rates, for example as a result of lower market interest rate or higher longevity risk; - replacing one or more investment funds. The investments are transferred from the investment fund to be replaced to an investment fund or funds with a similar risk profile. If in our assessment market conditions necessitate an adjustment for reasons of continuity and a proper conduct of business, we are allowed to carry these through. We can only do so on the basis of a board decision of Aegon PPI. In this context, in reasonableness, we take your interests and those of the (former) participant into account. If we make an adjustment, we will timely (at least 6 weeks in advance) inform you in writing. Subsequently you are obliged to bring your pension scheme with the participants in line with the change. You take care that the adjustments to the pension scheme gets assent from the participants and the possible Works Council. This also applies to the execution agreement. You will do this on time. The costs for carrying through the adjustment in our accounting systems are for our account. If you do not agree to the adjustment, you can terminate the execution agreement Terminating the execution agreement Free to terminate The agreement is an open-ended contract, with a notice period of two months. Termination is only possible by registered mail or digitally by the authorized signatory via ppi@aegon.nl. This applies both to you and to us. If you terminate this execution agreement, you have the following two options: 1) Have a paid-up policy created Paid-up policies are created out of the current insurance policies. The investments and the provisions of this execution agreement continue to be applicable. For the paid-up policies of the guaranteed pensions, we guarantee the level of the benefits which have been paid for. The insurances that have no paid up policy or redemption value lapse. Insurances that are paying out at that moment, keep on paying according to provisions in the execution agreement. 2) Group transfer of accrued benefits A transfer of the market value of the investments in the Aegon investment funds and the transfer value of the guaranteed pensions that is equal to the reserve increased by the value of the interest guarantee. The reserve is the net present value excluding disbursement reserve. 19

20 the level of the interest guarantee premium is described in section 3.3. Costs for the (former) participant. Termination on account of a shortcoming You and we are both party to this agreement. With due observance of the provisions of the Dutch Civil Code, either party may terminate the execution agreement prematurely on account of a shortcoming of the other party in its performance of the execution agreement. 20

21 Chapter 6. Final provisions 6.1. Formal provisions - We guarantee that the execution of the pension scheme according to the execution agreement and the pension regulations are entirely in accordance with each other. The Legal documents comply with current legislation and our policy. We do accept responsibility and Liability for this. - We conduct all our processes to our high standards of quality and ensure that the required expertise is available for this. - In executing this execution agreement we observe any relevant legislation and regulations. The execution agreement is governed exclusively by Dutch law. - Both you and we may cause a loss by failing to (fully) perform the execution agreement. If either party can be blamed for this, the party suffering the loss may claim compensation from the other party. A claim can only be submitted after a written notice of default, allowing the opportunity to limit the loss as much as possible. - Aegon PPI has chosen to collaborate with Aegon Leven and Aegon Schade on account of their professional attitude, administrative possibilities and their sound financial basis. The management of Aegon PPI will annually assess whether these insurers properly fulfill the arrangements made. In case of a negative assessment, Aegon PPI will do everything in its power to enforce any agreements made Confidentiality and privacy All personal data you provide to us are processed in accordance with the Personal Data Protection Act. We do this under responsibility of Aegon Nederland N.V. with which Aegon PPI B.V. is associated in a group. Your data are used for: - entering into and executing agreements; - compliance with statutory obligations; - combat of fraud and integrity monitoring; - statistical analysis; - marketing activities. Other subsidiaries of Aegon Nederland N.V. can use your personal data for the above purposes. They offer financial products or act as agents for these products. We will inform you which financial products and/or which subsidiaries these are if they do not carry the name Aegon. We will also inform you about the way in which you can tell us if you no longer wish to receive any further information. All this information and an explanation of it can always be referred to at We are allowed to record a telephone conversation and replay. We have an obligation of confidentiality towards third parties for all information that we receive or collect. We ensure that unauthorised parties have no access to the information. We will only use the information to execute the pension scheme, meet the statutory requirements, perform statistical analyses and to prevent and combat fraud. Also if the information is (no longer) traceable to you or to natural persons, we will not use it for other purposes. 21

22 The obligation of confidentiality does not apply: - after you have given us written permission to provide information to third parties; - if there exists a statutory obligation to provide information to a third party; - if providing information to third parties is logically necessary as a result of the instructions you have given us. For example if we need to pass on information to your adviser. If we have any doubts whether we are allowed to pass on information to a third party, we will ask you for a written statement. Your statement is decisive and we will adhere to it. Services of third parties If we use the services of third parties, they will be required to accept in writing the same obligation of confidentiality that exists between you and us. We are responsible for them observing the obligation of confidentiality. You are allowed to check this. DNB and AFM The Dutch Central Bank and the Financial Markets Authority have access to our accounting systems if they require this. However, only to the extent that this is relevant. They will receive all the necessary data from us, in accordance with any statutory provisions on confidentiality. 22

23 Chapter 7. Complaints We make every effort to offer you an excellent service. Should you still have any complaints, we would like to hear this from you. Complaints about the intermediary services, the formation and execution of this execution agreement can be submitted in writing to: Aegon PPI B.V. Klachtbehandeling Postbus MZ Leeuwarden Telephone: ++31 (0) Digitally: via our via our complaints form at You can be assured that we will handle your complaint quickly and with due care. You will receive an initial response within five working days. Sometimes we will not be able to solve your complaint immediately. In that case we will clearly indicate what you can expect from us in order to arrive at a solution. If you are not satisfied with the outcome or handling of your complaint, you can submit it to the competent court. It is not obligatory to follow our complaints procedure first. You can also submit your complaint directly to the competent court. 23

24 Annexe 1 Explanation of terms Who is: Aegon PPI Aegon Leven Aegon Schade Employee Person entitled to pension Partner Child Aegon PPI B.V. acting on behalf of itself and as authorised agent to perform certain activities on behalf of Aegon Levensverzekering N.V. and Aegon Schadeverzekering N.V. All these companies are established in The Hague. Aegon Levensverzekering N.V. Aegon Schadeverzekering N.V. The person who performs labour for you on the basis of an employment agreement under civil law. The person who receives pension. The person with whom the participant, before his retirement date: - is married; or - has entered into a registered partnership; or - on his death lives together on the basis of a partnership that commenced before his retirement date. The participant s own children. Also step children and foster children if these have been maintained and raised by the participant as his own child(ren) until the participant s death, in so far as the maintenance and upbringing started before the participant s retirement date. What is: Execution agreement Pension agreement Pension regulations Retirement date The agreement between you and Aegon PPI, also acting on behalf of Aegon Levensverzekering N.V. and Aegon Schadeverzekering N.V., on the execution of this pension scheme. The agreement between you and the employee relating to the pension scheme. The document in which the details of the pension scheme are described. And the arrangements between the participant and us. The date on which the retirement pension by way of standard procedure commences in accordance with the pension agreement. This is the first day of the month in which the participant reaches the age of 67 years. 24

25 Annexe 2 Digital exchange of information Aegon BeheerNet for the employer - During our collaboration you have access to our internet portal Aegon BeheerNet. Via this portal you have access to the pension data of your employees who are a participant to the pension scheme. - You are allowed to agree upon with an advisor that has the WFT Pension certificate, that he can have access to and insight in Aegon BeheerNet and process modifications. To secure arrangements you use the agreement Aegon BeheerNet in the offer, that is mentioned in the Compliance statement of this execution agreement. - You are given a user name and password for access to Aegon BeheerNet. It is explicitly forbidden to give these to third parties not associated with your company. - You are responsible for Aegon BeheerNet being used in accordance with our rules and criteria. - You are required to take measures to secure (the use of) Aegon BeheerNet. - The information you receive via Aegon BeheerNet may only be processed for the participant corresponding with the personal data. Also, you are required to observe confidentiality with regard to all information that you receive via Aegon BeheerNet. - You are not allowed to organise any advertising activities in relation to Aegon BeheerNet, unless you have received our written permission for this. - Both you and we will inform the other party immediately in the event of an error in the information on or via Aegon BeheerNet. - If a participant completes an application or modification form, you are required to keep the original copy. If we ask for it, you must send it to us. Mijn Aegon for the participant - The new participant can register at for access to Mijn Aegon. The portal is for participants only. - We may adjust the functionality and layout of Mijn Aegon without your permission. If we inform the participants, you will be informed about this previously. Liability - You are liable for any loss we may suffer in relation to the use of Aegon BeheerNet if this is the result of failure to comply with the provisions in this execution agreement on access, security, confidentiality and privacy. - If a participant holds us liable because he has suffered a loss due to the fact that you failed to enter a change properly on Aegon BeheerNet, we can recover this loss from you. This also applies if a participant holds us liable for loss because the change referred to resulted in incorrect information on Mijn Aegon. - We are not liable for any information that has not been provided via ourselves via Aegon BeheerNet and/or Mijn Aegon. - We cannot be held liable for any consequential loss. Consequential loss includes lost profit, lost savings and other additional loss. Other conditions and information The other conditions for the use of Aegon BeheerNet and Mijn Aegon can be read on The functionality, system requirements and participants agreement for example can also be found here. 25

26 Annexe 3 Rates tables This annexe contains the premiums for the risk insurance policies, namely: - Gross risk rates for men and for women for the Dependant s Pension. - Gross risk rates for men and for women for the ANW shortfall pension. Surcharges in the risk rate There exists a surcharge between the net premium and gross premium for the Dependant s Pension and the ANW shortfall pension. This concerns the following surcharges: Waiver of premium Administrative costs This surcharge only applies to the Dependant s Pension. The risk premium for waiver of premium payment in the event of disability is insured. The surcharge for this is 3.65% of the gross risk premium. In providing the risk cover we perform administrative tasks. The surcharge for these activities is included in the rate. Costs for paying out pension We charge costs for paying out the pension. The surcharge is 2.00% of the net risk premium. Costs for paying out partner s pension Solvency The benefit of the partner s pension starts from the first day of the month in which the participant dies. The payment ends on the last day of the month in which the partner dies. For this extension of the payment period we charge a surcharge of 0.50% of the net risk premium. The Dutch Central Bank requires insurers on entering a pension insurance to maintain a certain level of solvency reserve. Costs are involved in this. For this reason the rate includes a surcharge. Actuarial assumptions of the risk insurance for Dependant s Pension and ANW shortfall pension Actuarial interest rate 3% Rate Age adjustment partner s pension Before retirement date man Before retirement date women Co-insured men Co-insured women Net single premium Gender-dependent rates Aegon rate 2011, based on the Pension Table 2010 of the Dutch Association of Insurers. +5 years +5 years 0 years 0 years times the continuously calculated net present value. The risk rates of the partner s pension before the retirement date are based on a fixed age difference of 3 years. 26

27 Rates Leeftijd Partnerpensioen Wezenpensioen Anw -hiaat Garantpensioen** in Premie per ,- Premie per ,- pensioen Jaarpremies per ,- OP jaren Mannen Vrouw en Mannen Vrouw en per *) en 7.000,- NP Exclusief RSC (25,6%) en termijnopslag (2,5%) OP 15 16,00 13,00 155,00 110,10 28, ,00 15,00 155,00 110,10 29, ,00 15,00 155,00 110,10 31, ,00 16,00 155,00 110,10 31, ,00 17,00 155,00 110,10 32, ,00 18,00 155,00 110,10 34, ,00 18,00 155,00 110,10 35, ,00 19,00 155,00 110,10 38, ,00 19,00 155,00 110,10 40, ,00 19,00 155,00 110,10 43, ,00 20,00 155,00 110,10 46, ,00 21,00 155,00 110,10 50, ,00 23,00 155,00 110,10 53, ,00 25,00 155,00 110,10 56, ,00 29,00 155,00 110,10 61, ,00 33,00 155,00 110,10 67, ,00 37,00 155,00 110,10 70, ,00 41,00 155,00 110,10 79, ,00 47,00 155,00 110,10 85, ,00 54,00 155,00 110,10 90, ,00 61,00 155,00 110,10 98, ,00 70,00 155,00 110,10 110, ,00 82,00 155,00 110,10 119, ,00 93,00 155,00 110,10 129, ,00 109,00 155,00 110,10 143, ,00 128,00 155,00 110,10 158, ,00 149,00 155,00 110,10 177, ,00 176,00 155,00 110,10 201, ,00 204,00 155,00 110,10 225, ,00 238,00 155,00 110,10 256, ,00 274,00 155,00 110,10 287, ,00 310,00 155,00 110,10 319, ,00 345,00 155,00 110,10 348, ,00 379,00 155,00 110,10 374, ,00 413,00 155,00 110,10 396, ,00 447,00 155,00 110,10 420, ,00 482,00 155,00 110,10 443, ,00 517,00 155,00 110,10 460, ,00 555,00 155,00 110,10 478, ,00 593,00 155,00 110,10 498, ,00 629,00 155,00 110,10 511, ,00 660,00 155,00 110,10 513, ,00 685,00 155,00 110,10 507, ,00 706,00 155,00 110,10 503, ,00 723,00 155,00 110,10 493, ,00 738,00 155,00 110,10 557, ,00 751,00 155,00 110,10 557, ,00 766,00 155,00 110,10 557, ,00 790,00 155,00 110,10 557, ,00 818,00 155,00 110,10 557, ,00 855,00 155,00 110, ,00 902,00 155,00 110, ,00 961,00 155,00 110, *) Eenjarige risicopremies. Vanaf 60 jaar gelijkblijvende premies. ** jaarpremie Garantpensioen is exclusief termijnopslag 27

28 Annexe 4 Group transfer of accrued benefits on termination of the execution agreement If at the end date of the execution agreement the employer has opted for a group transfer of accrued benefits to another pension provider in accordance with Section 83 Pensions Act, the following applies. On a transfer to another pension provider: The insurer transfers its obligations as pension provider of the employer s pension scheme to another pension provider. The transfer value of the guaranteed pensions is determined and transferred. This is equal to the reserve increased by the value of the interest guarantee. The reserve is the net present value of the entitlements excluding disbursement reserve based on the contract rate. The costs of the transfer are for the account of the employer. The surcharge for the interest guarantee in the premium is described in 3.3. With this, for the part of the pension that was funded via payment of premiums, the interest guarantee premium has been fully funded for the duration of the insurance. On a transfer to another pension provider, the value of the interest guarantee for the period after the end date of the execution agreement is determined and added to the transfer value. The value of the interest guarantee is equal to 20.5/23.5 times the current interest guarantee premium in terms of percentage times the net reserve of the guaranteed benefits at the end date of the execution agreement. The current interest guarantee premium in terms of percentage at the end date of the execution agreement is determined on the basis of the then prevailing market conditions, in the same manner as it is determined during the contract term. 28

29 Annexe 5 Conditions of insurance 29

30 Annexe 6 Pension regulations We execute the pension scheme in accordance with the pension agreement, as described in the pension regulations. The pension regulations describe the details of your pension scheme and also arrange the relationship between your (former) employees, the persons entitled to pension and us. Click below on the front page of the pension regulations to read the full text. 30