Pension Plan rules. Philips flex pension CLA (Flex 67 CLA) Stichting Philips Pensioenfonds

Transcription

1 2016 Pension Plan rules Philips flex pension CLA (Flex 67 CLA) Stichting Philips Pensioenfonds 2

2 Pension Plan Rules Philips Flex Pension CLA (Flex 67 CLA) These Pension Plan rules are applicable to Members as defined in article 1, paragraph 1. Stichting Philips Pensioenfonds July 2016

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4 Core amounts Philips flex pension (Flex 67 CLA) The current version of this table can be found at AO-limit amount (article 1, paragraph 4) Date AO-limit amount ,746 Offset (article 1, paragraph 9) Date Amount ,572 ANW shortfall insurance (article 9, paragraph 2) Date Amount ,968 Maximum full-time pensionable salary (article 1, paragraph 13) Date Amount ,519 Surrender limit (articles 16, 17 and 18) Date Amount Employee premiums 1. Pension premium (article 1, paragraph 22) (in % terms of the pensionable salary): 2% from ANW shortfall insurance premium (article 4, paragraph 4) Age Monthly premium from Stichting Philips Pensioenfonds 2

5 Contents Artikel 1 Definitions 4 Artikel 2 Pensions 8 Artikel 3 Determination of base figures / Part-time factor / Partnership 8 Artikel 4 CDC character / Financing 9 Artikel 5 Retirement age / Retirement pension / High-low plan 10 Artikel 6 Partial retirement 12 Artikel 7 Advancement and deferral when selecting the Retirement age 13 Artikel 8 Survivor s pension 13 Artikel 9 ANW shortfall insurance 14 Artikel 10 Exchange of pension entitlements at Retirement age 16 Artikel 11 Special survivor s pension 17 Artikel 12 Orphan s pension 18 Artikel 13 Disability pension 19 Artikel 14 Non-contributory accrual of pension 21 Artikel 15 Premature termination of employment 22 Artikel 16 Surrender value of small Retirement pension upon termination of participation 23 Artikel 17 Surrender of small Survivor s pension or Orphan s pension upon start of pension 24 Artikel 18 Surrender of small Special survivor s pension 25 Artikel 19 Transfer of value / Acceptance value 25 Artikel 20 Maximising 26 Artikel 21 Payment of pensions 26 Artikel 22 Indexation 27 Artikel 23 General expat provision 29 Artikel 24 Amendments to the Plan rules and pension reduction 29 Artikel 25 Special provisions 29 Artikel 26 Pension settlement / Conversion 31 Artikel 27 Complaints procedure 31 Artikel 28 Liquidation of the Fund 31 Artikel 29 Transitional provisions 32 Artikel 30 Applicability and commencement, and applicable law 36 Appendix 1 Appendix 2 Appendix 3 Pre-retirement scheme rules Actuarial factors Complaints procedure pensions Pension Plan rules Philips flex pension (Flex 67 CLA) 3

6 l 1 Definitions Article 1 All terms defined start with a capital letter. The meaning of all terms defined in the Articles of Association of Stichting Philips Pensioenfonds shall be identical for the purposes of these Plan rules, unless otherwise has been provided. Additionally, in these Pension Plan rules the below terms are understood to mean: 1.1 Member The person 1) employed by Philips and to whom the prevailing Philips collective labour agreement (CLA) is applicable. 2) for whom pension is accrued pursuant the Pension Plan rules Philips flex pension (Flex 67 CLA) although his/her employment contract with Philips was terminated. 1.2 Surrender limit The amount referred to in the articles 66, paragraph 1, 67, paragraph 1 and 68, paragraph 1 of the PW. 1.3 ANW Surviving Dependants Benefits Act. 1.4 AO (occupational disability) limit amount The amount as stated in the table Core Amounts in these pension plan rules, increased annually at Reference date with and in line with the percentage of the Collective salary scale adjustment, multiplied by the Part-time factor valid in the month previous to the first day of illness. 1.5 AOP (Disability pension) base figure The base figure for the calculation of a Disability pension as referred to in article 13, which is equal to the Pensionable salary as referred to in article 1, paragraph 18 under a, preceding the first day of illness or, if after the first day of illness an individual salary increase took place, the Pensionable salary as referred to in article 1, paragraph 18 under a, applicable after this individual salary increase, increased by the Collective salary scale adjustments that took place during the period between the first day of illness and the start date of the Disability pension. In this context, the first day of illness is understood to mean the day on which the waiting time for the WIA commenced. 1.6 AOW Old Age Pensions Act. 1.7 Collective salary scale adjustment The full Collective salary scale adjustment as showing from the CLA in force at Philips in the period from 2 April of the preceding calendar year up to the Reference date of the current calendar year. Stichting Philips Pensioenfonds 4

7 1.8 Part-time factor A factor, the numerator of which is the number of hours of the actual working time as specified in the Member s contract of employment with Philips, and the denominator of which is the full working time as laid down in the collective labour agreement (CLA). If no fixed number of hours is recorded in the employment contract, the numerator of the above calculation will be the number of hours actually worked during the period over which the Part-time factor is determined. 1.9 Offset The amount as stated in the table Core Amounts in these pension plan rules to be increased annually at the Reference date by the Collective salary scale adjustment Former member The Member whose employment with Philips has ended before the Retirement age other than by death or disability, with the exception of those Members on whose behalf a pension is still being accrued pursuant to these Plan rules despite the termination of their employment with Philips Children The Children with whom the (Former) Member or the person entitled to pension has a legally binding family relationship, as defined in book 1 of the Dutch Civil Code. The stepchildren or foster Children of the (Former) Member or the person entitled to pension raised and maintained sustainably until the death of the (Former) Member or the person entitled to pension as his/her own Children, such to the Fund s discretion Wage inflation The Collective salary scale adjustment Maximum full-time pensionable salary The Maximum full-time pensionable salary is equal to the amount stated in article 18ga of the Wages and Salaries Tax Act This amount will, if necessary, be adjusted from time to time Partner a) The spouse of the (Former) Member; b) The person who has entered into a registered Partnership with the (Former) Member as referred to in Book 1 of the Dutch Civil Code, which Partnership has not ended; c) The person who runs a joint household with the (Former) Member, who has no spouse or registered Partner, is unmarried, has no registered Partner and is not a relative by blood or affinity to the first degree of the (Former) Member and who is registered as a Partner in writing to the Fund by the (Former) Member. A joint household shall be understood to mean a joint household as defined in the ANW Partnership a) A marriage; b) A registered Partnership as referred to in Book 1 of the Dutch Civil Code; Pension Plan rules Philips flex pension (Flex 67 CLA) 5

8 c) Conducting a joint household with a Partner registered to the Fund as referred to in article 1, paragraph 14 under c Reference date 1 April of a calendar year Pensioner A person whose Retirement pension has started Pensionable salary For the application of these Plan rules, the Pensionable salary is annually determined as per the Reference date, consisting of: a) A fixed Pensionable salary equivalent to 12 times the monthly salary at the Reference date, if and insofar applicable, increased by the personal budget and structural gross salary components that qualify for inclusion in the fixed Pensionable salary in accordance with the CLA. The fixed Pensionable salary cannot be more than the Maximum full-time pensionable salary, taking into account the Part-time factor; b) A variable Pensionable salary, equivalent to the sum of the variable gross income components that were payable by Philips to the Member during the 12-month period directly preceding the Reference date, and that, pursuant to the CLA qualify for inclusion in the variable Pensionable salary, if and insofar applicable decreased by the sum of withheld amounts to the personal budget during the above-mentioned period. The fixed Pensionable salary as referred to under a,, and the variable Pensionable salary can together amount to no more than the Maximum full-time pensionable salary, taking into account the Part-time factor Pension base The Pensionable salary as referred to in article 1, paragraph 18 under a, decreased by the Offset, taking the Part-time factor into consideration and supplemented by the variable Pensionable salary as referred to in article 1, paragraph 18 under b Retirement age The age on which the Retirement pension takes effect partly or in full. For a (Former) Member, this is the Normal retirement age of 67, unless a different Retirement age applies in accordance with the provisions of articles 5 or Pension year A period of one year of uninterrupted participation in the Fund, effective from the Reference date of the calendar year to the Reference date of the subsequent calendar year Pension contribution The contribution due by the Member to Philips for insuring the pension entitlements arising from these Plan rules, with the exception of the entitlements referred to in article Pension agreement The agreements on pension made between Philips and its employees in the CLA. Stichting Philips Pensioenfonds 6

9 1.24 Normal retirement age For a (Former) Member this is the age of Philips Koninklijke Philips N.V., its Group companies in the Netherlands and Legal entities and companies that the Board of Trustees deems equivalent to Group companies in terms of insurance of retirement and other pensions that are party to an administration contract Premium ANW shortfall insurance The premium due by the Member for the ANW shortfall insurance as referred to in article Premium year The period of a year running from the Reference date of the calendar year to the Reference date of the following calendar year Price inflation The percentage by which the derived Consumer price index figure for all households of the Statistics Netherlands (CBS) for the month of January of the current calendar year has risen in relation to the month of January of the preceding calendar year PW Pensions Act Salary base figure for non-contributory pension accrual The AOP base figure as referred to in article 1, paragraph 5 maximised to the Maximum full-time pensionable salary multiplied by the Part-time factor Supervisor The Financial Markets Authority or De Nederlandsche Bank N.V., each in so far as charged with the supervision by or by virtue of article 151 of the PW Defined benefit agreement A Pension agreement with respect to fixed pension payments Administration agreement The agreement between Philips and Stichting Philips Pensioenfonds about the performance of the Pension agreement Fixed Pension base The Pensionable salary as referred to in article 1, paragraph 18 under a minus the Offset, taking into consideration the Part-time factor WIA Work and Income according to Labour Capacity Act Pension Plan rules Philips flex pension (Flex 67 CLA) 7

10 l 2 Pensions Article 2 Subject to that provided in these Plan rules, the (Former) Members and their surviving relatives are entitled, have a right, respectively, to: - Retirement pension (article 5); - Survivor s pension (article 8); - Benefits pursuant to the ANW shortfall insurance (article 9); - Special survivor s pension (article 11); - Orphan s pension (article 12); - Disability pension (article 13); - Non-contributory accrual of pension relating to occupational disability (article 14). l 3 Determination of base figures / Part-time factor / Partnership Article The applicable Pensionable salary, Offset and the Fixed Pension base are determined for each Member at the starting date of participation and then annually at the Reference date, and also, insofar as necessary, the AOP base figure and the Salary base figure for non-contributory pension accrual. The effective date of participation is considered the date of employment with Philips if this falls on the first day of a calendar month. If the date of employment with Philips does not fall on the first day of a calendar month, the starting date of participation will be the first day of the month following the starting date of employment with Philips. 3.2 In the event of a change to the Part-time factor, the Offset, the Pensionable salary as referred to in article 1, paragraph 18 under a, and the Fixed Pension base will be recalculated. In accordance with these Plan rules, future pension accrual will be based on the last Part time factor registered in the system. A change to the Part-time factor as per the first day of the calendar month will be a factor in the future pension accruals as per that date. A change to the Part-time factor that is not effective on the first day of a calendar month will be a factor in the future pension accruals as per the first day of the following calendar month. 3.3 Having multiple Partners as referred to in article 1, paragraph 14, registered simultaneously is not possible. 3.4 The (Former) Member must inform the Fund immediately relating to entering into or terminating a Partnership. The Pensioner must inform the Fund immediately relating to terminating a Partnership. 3.5 A Partnership as referred to in article 1, paragraph 15 under c, may exclusively be registered if any previous Partnership as referred to under article 1, paragraph 15 under c is deregistered by means of the relevant form provided by the Fund. The Partnership as referred to in article 1, paragraph 15 under c terminates: Stichting Philips Pensioenfonds 8

11 a) As per the date of receipt of the (Former) Member s or Pensioner s notice in writing that the Partnership was terminated; b) At a date to be determined by the Fund if the (Former) Member or Pensioner fails to provide the details proving that the Partner registered by him/her is still his/her Partner, at the Fund s discretion; c) At the date of the (Former) Member s or Pensioner s Partner s death. 3.6 If the Partnership of a (Former) Member or Pensioner is terminated based on the provisions of the previous paragraph, the Stichting Philips Pensioenfonds will send a notice in writing accordingly to the (Former) Member or Pensioner. 3.7 The Board of Trustees may set further conditions relating to the registering and deregistering method of the Partner as referred to in this article. l 4 CDC character / Financing Article The Philips flex pension (Flex 67 CLA) has the character of a Collective Defined Contribution plan. Consequently, Members entitlement to pension benefits depends on the financing of the Fund as will be agreed from time to time in the Administration agreement, as set down in this article 4. Under the Administration agreement concluded between Philips and the Fund, a fixed premium to be agreed from time to time between the Fund and Philips is payable annually by Philips from 1 January For the period up to 1 January 2019 a fixed premium has been agreed of 24% of the sum of the pensionable salaries in that year of all Members (including the Pension contributions payable by the employees). With the payment of the fixed premium Philips will have met all its financial obligations towards the Fund. The following description of the calculation of the premium applies to the total available premium for all Members of the Philips flex pension (Flex 67, Flex 67 CLA and Flex 67 ES). The Fund will utilise the premium made available annually for successively financing the costcovering premium consisting of: a) the Fund s operational expenses b) the risk premiums related to the Survivor s and Orphan s pension, non-contributory pension accrual due to disability and the Disability pension c) the Retirement, Survivor s and Orphan s pension entitlements that are to be accrued. In the event that, after utilization as referred to in a. to c. a surplus remains, the Fund will transfer this remainder to the dedicated premium reserve which the Fund has created for this purpose, doing so in accordance with the method referred to in the Administration agreement. If and insofar as in any year the available premium is not sufficient to finance the annual expenses referred to in a. to c., the pension entitlement in that year may be reduced proportionately. The Board of Trustees may decide to withdraw funds from the dedicated Pension Plan rules Philips flex pension (Flex 67 CLA) 9

12 premium reserve, doing so in accordance with the method referred to in the Administration agreement, so that the reduction outlined in the preceding sentence can (in part) be averted. The premium percentages for the ANW shortfall insurance are set each year. The premium for the ANW shortfall insurance is not included in the fixed premium as referred to in this article. 4.2 Philips undertakes towards the Fund by agreement to pay the total annual amount as referred to in paragraph 1 of this article such under the reservation that Philips may diminish its contribution should a radical change of circumstances occur. 4.3 The Pension premium is due from the date on which the employee is deemed to be a Member within the meaning of the present Pension Plan rules, up to the month of reaching the Retirement age, however, until the Normal retirement age at the latest. 4.4 The ANW shortfall insurance premium is due from the effective date of the insurance until the first day of the month following the termination date of the insurance. 4.5 The Pension premium and the ANW shortfall insurance premium due from a Member who is a Philips employee, is withheld monthly from the salary by Philips. The ANW shortfall insurance premium is transferred monthly to the Fund. The ANW shortfall insurance premium due from a Member entitled to a Retirement pension is withheld monthly by the Fund from the pension to be paid to the Member. 4.6 The entitlement to a proportional Retirement pension as referred to in article 55, paragraph 1 of the PW, must be financed in full for the Member at the end of every Pension year, or, if such is sooner, upon termination of the participation. l 5 Retirement age / Retirement pension / High-low plan Article Unless a different Retirement age has been selected under application of paragraph 2 of this article, the Retirement age is equal to the Normal retirement age applicable to the Member. 5.2 The Member is entitled to select a Retirement age once that varies from the Normal retirement age, on the understanding that the Retirement age may not fall before the age of 60 and not after the age of 70 of the Member, taking into account article 7 of these Plan rules. A Retirement age after the age of 67 is possible only with Philips consent. If the Member uses the right referred to in the first sentence of this paragraph, he/she must notify the Fund in writing: - latest 6 months prior to the intended Retirement age, - and earliest when reaching the age of 58, of the chosen Retirement age. Without prejudice to the provisions of the previous paragraph, if a Retirement age between 67 and 70 has been selected, the Fund must be informed of this choice in writing latest upon Stichting Philips Pensioenfonds 10

13 reaching the age of Advancement of the retirement date is possible only insofar as there is no income from employment and/or other economic activity, in accordance with the corresponding statutory provisions. The provisions of the preceding sentence are not applicable in the event that retirement takes effect on or within five years before the AOW pension age. Furthermore, advancement requires the Partner s approval, in compliance with the corresponding legislation and regulations. In the event of advancement as referred to in this article, the entitlements to Survivor s pension will be decreased proportionally with the Retirement pension. 5.3 For the Member who is a Philips employee, as well as for those who in spite of the termination of their employment at Philips are still accruing a pension pursuant to these Plan rules, an entitlement to Retirement pension is accrued every Pension year to an amount equal to a maximum of 1.85% of the Fixed Pension base. The accrual is calculated proportionally if the Member does not have a full Pension year entitlement to pension accrual. Additionally, an entitlement to Retirement pension is accrued annually as per the Reference date amounting to a maximum of 1.85% of the variable Pensionable salary as referred to in article 1, paragraph 18 under b. The targeted accrual rate of 1.85% stated above may be lowered for any Pension year if the pension premium payable in that Pension year by Philips (including the Pension contributions payable by the employees), as referred to in article 4, is not sufficient to finance the entitlement to Retirement pension on the basis of the targeted accrual rate referred to above. For the Member, pension accrual terminates upon reaching the Retirement age, or upon reaching the Normal retirement age applicable to the Member at the latest. The Retirement pension is a Defined benefit agreement in nature within the meaning of the PW. 5.4 The entitlement to Retirement pension accrued by a Member can be conditionally indexed annually at Reference date based on the Price inflation, in accordance with the method, conditions and limitations included in article 22. In addition, an extra conditional supplement (indexation) amounting to a maximum of the difference between the level of Wage inflation and Price inflation may be granted in accordance with the method, conditions and limitations included in article 22. Indexation of the pension entitlement under this paragraph terminates at the Retirement age. Contrary to what is stated in the preceding sentence, extra indexation terminates at the Normal retirement age in the event that, as a consequence of the application of article 7, paragraph 3, the Retirement age is after the Normal retirement age. 5.5 The Member, as well as the holder of a paid-up policy with an entitlement to Retirement pension as referred to in article 15, is entitled to a Retirement pension upon reaching the Retirement age. The Retirement pension will start as per the first day of the month following the month during which the Normal retirement age is reached, or on the date selected if article 5, paragraph 2 is applicable, and will be paid out until the month during which the beneficiary dies. In derogation of the provisions of the preceding full sentence, the Retirement pension takes effect from an earlier date should such be required by virtue of statutory provisions relevant to this matter. Pension Plan rules Philips flex pension (Flex 67 CLA) 11

14 5.6 Subject to the provisions of article 6, the Retirement pension amounts to the sum of the amounts referred to in paragraph 3 of this article, indexed in accordance with paragraph 4 of this article. 5.7 Insofar as in agreement with article 63 of the PW and in accordance with any further regulations to be determined by the Board of Trustees, the Member and the holder of a paid-up policy as referred to in article 15 are once-only entitled at the Retirement age to convert the Retirement pension then taking effect into a Retirement pension which during the period until the first day of the month following their AOW pension age or the age of 72 is higher than the original Retirement pension and in the next period is lower than the original Retirement pension. The benefit after the AOW pension age or the age of 72 may not be lower than 75% of the benefit up to the AOW pension age or the age of 72 and the amount of any bridging benefit pursuant to article 7, paragraph 2 is not considered. The amount of the Survivor s pension is not adjusted accordingly. Calculation takes place on the basis of the actuarial factors included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. l 6 Partial retirement Article If the Member is a Philips employee, he or she has the option of Partial retirement prior to full retirement from the age of 60, such in accordance with the relevant CLA conditions and subject to the Partner's approval. Partial retirement from the age of 67 is possible only with Philips consent. If the Member wishes to take this option, he/she must inform the Fund in writing 6 months before the effective date of the Partial retirement at the latest, however upon reaching the age of 58 at the earliest, about the date(s) on which he/she wishes to (partially) retire and what the remaining working hours will be after Partial retirement. Without prejudice to that provided in the previous full sentence it applies that if an intended effective date of the parttime pension at an age between 67 and 70 is selected, the Fund must have been informed of this choice upon reaching the age of 66.5 at the latest. 6.2 Upon reaching the date of Partial retirement referred to in the preceding paragraph, the Member is entitled to a Retirement pension and a Survivor s pension calculated in accordance with article 5 paragraph 6 in conjunction with article 7 paragraph 1, multiplied by a factor the numerator of which is the number of hours the volume of the employment diminishes upon Partial retirement, and the denominator of which is the volume of the Member s employment expressed in hours immediately preceding the Partial retirement. Article 10, paragraph 1 is similarly applicable. 6.3 Upon Partial retirement, with respect to the remaining employment with Philips, that provided in these Plan rules with respect to the Member who is a Philips employee remains applicable unimpaired. From the moment of reaching the Normal retirement age, pension accrual stops. 6.4 The Board of Trustees is authorised to implement further and/or deviating rules relating to the method of exercising the right to partial retirement. Stichting Philips Pensioenfonds 12

15 l 7 Advancement and deferral when selecting the Retirement age Article If the Retirement age is before the Normal retirement age, the Retirement pension calculated in accordance with article 5 is decreased on the basis of the actuarial factors included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. Advancement is possible exclusively with the Partner s permission and subject to the relevant laws and regulations. In the event of advancement as referred to in this article, the entitlements to Survivor s pension will be decreased proportionally with the Retirement pension. 7.2 If the chosen Retirement age is before the AOW pension age, the Member, in addition to the previous paragraph and subject to the Partner s approval, has only once the option to exchange part of the Retirement pension for a bridging benefit effective from the Retirement age and ending on the AOW pension age, such on the basis of actuarial factors included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. The amount of the Survivor s pension amounts to 70% of the life-long Retirement pension that remains after the exchange for a bridging benefit. The bridging benefit amounts to a maximum of the amount referred to in article 18d, paragraph 3 of the Wages and Salaries Act The Board of Trustees may set further conditions to the amount and calculation method of the bridging benefit. 7.3 If the Retirement age is after the Normal retirement age, the Retirement pension calculated in accordance with article 5 is increased on the basis of the actuarial factors stated in appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. Deferral is possible only and insofar as employment with Philips is continued. In the event of deferral as referred to in this article the entitlement to Survivor s pension will be increased in the same proportion as the Retirement pension. 7.4 The actuarial factors that are currently applicable are included in Appendix 2 of these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. l 8 Survivor s pension Article After the death of a Member, his/her Partner is entitled to a Survivor s pension of: - 70% of the Retirement pension accrued at the time of the death - plus 70% of the retirement pension which the Member would have attained from the date of death until the Normal retirement age on the basis of the Fixed Pension base applicable on the date of death of the Member, calculated with the following accrual rates: Pension Plan rules Philips flex pension (Flex 67 CLA) 13

16 1. for the remainder of the Premium year in which the Member died: the accrual rate applicable in the Premium year in question; 2. for the Premium years after the Premium year in which the Member died: the targeted accrual rate as referred to in article 5, paragraph 3. - increased by 70% of the accrual rate applicable for the Pension year of death multiplied by the variable gross elements of income which have been/will be paid and relate to the period from the beginning of the Pension year in which the Member s death takes place until the date of the Member s death, - increased by any indexations applied pursuant to article 22 of these Plan rules. Claims to Special survivor s pension as referred to in article 11, will be deducted from the Survivor s pension to be paid out, and the remaining Survivor s pension cannot become negative. The Survivor s pension is a Defined benefit agreement in nature within the meaning of the PW. 8.2 After the death of a Former Member or a Pensioner respectively, his/her Partner is entitled to Survivor s pension, provided that the Partnership was concluded before reaching the Retirement age, to an amount of the existing entitlements to Survivor s pension at the moment of death, deducting, where applicable, any entitlements to Special survivor s pension. The right to Survivor s pension as described in the previous sentences does not exist after full exchange of Survivor s pension to Retirement pension in accordance with the provisions of articles 10 and 15 of these Plan rules. 8.3 The Survivor s pension takes effect from the first day of the month during which the (Former) Member or Pensioner dies and is paid up to and including the month of death of the beneficiary. l 9 ANW shortfall insurance Article a) The Member who is a Philips employee, whose Partner 1) was born in 1950 or later and 2) has not yet reached the AOW pension age, is entitled in the following cases such under the conditions as laid down in these Plan rules to take out an ANW shortfall insurance with the Fund: I. Upon commencement of the employment with Philips; II. If he/she either by birth, adoption or on other grounds enters into a relationship with a child, as defined in article 1, paragraph 11. b) The Member who is a Philips employee and who has no Partner is entitled, such under the conditions as laid down in these Plan rules, to take out an ANW shortfall insurance with the Fund, if he/she enters into a Partnership with a Partner who meets the conditions referred to under a, number 1) and 2) of this paragraph. 9.2 The Member who is entitled to take out an ANW shortfall insurance, has the choice between an ANW shortfall insurance with an insured amount per year of 8/7 of the most recent uncut annual ANW benefit as applicable from 1 April of a survivor as referred to in article 14 of the ANW without Children younger than 18 years, or an insured amount per year of 2/3 or 1/3 of this amount. The request for taking out an ANW shortfall insurance must have been received by Stichting Philips Pensioenfonds 14

17 the Fund 2 months after the event which created the entitlement to take out an insurance set forth in paragraph 1 of this article at the latest. Any requests received by the Fund after this period, will not be considered. The ANW shortfall insurance is a Defined benefit agreement in nature within the meaning of the PW. 9.3 An ANW shortfall insurance in force may at any time be decreased or terminated. Increasing a valid ANW shortfall insurance is possible exclusively in cases where concluding an ANW shortfall insurance would be possible. 9.4 A premium is chargeable to the Member relating to the ANW shortfall insurance, the amount of which is determined by the Board of Trustees. The obligation to pay a premium commences on the effective date of the insurance and ends on the first day of the month following the month during which the insurance is due to end. The premium owed by the Member who is an employee of Philips is withheld from the salary by Philips in monthly instalments and transferred to the Fund. The premium owed by the Member who is entitled to a pension from the Fund, is withheld by the Fund monthly from the pension to be paid. 9.5 A request for taking out an ANW shortfall insurance must be submitted to the Fund in writing, using the appropriate form. The Member must inform the Fund in the same manner when terminating an insurance or adjusting the amount insured. The insurance referred to in this article and/or the termination of the insurance or an adjustment of the amount insured takes effect from the latest of both the following dates: 1) the desired date indicated by the Member in the appropriate form, or 2) the date of receipt by the Fund of the above-mentioned form. If no desired effective date is indicated in the form, the insurance, the termination of the insurance, or the adjustment of the amount insured takes effect in all circumstances from the date of receipt of the form referred to in the above by the Fund. Other than at the request of the Member, the insurance ends at the earliest of the following points in time: a) The date of termination of the Member s employment contract with Philips, other than in connection with retirement; b) The Member s 67th birthday, unless that provided in paragraph 9 or 10 of this article applies; c) The date on which the Member s Partner reaches the AOW pension age applicable to him/her; d) The date on which the Partnership ended other than by the death of the Member s Partner; e) The date on which the Member s Partner died. 9.6 After the death of a Member who has taken out an ANW shortfall insurance, his/her Partner at the time of death is entitled to a monthly benefit of a one twelfth part of the amount insured, as referred to in paragraph 2 of this article. 9.7 The monthly payment by virtue of the ANW shortfall insurance takes effect from the first day of the month during which the Member has died and ends on the first day of the month following the month during which the person entitled attains the AOW pension age or on the first day of the month following his/her earlier death. 9.8 The provisions of this article apply by analogy to the Member who is entitled to a Retirement pension from the Fund and who has not yet reached the age of 67. For Members who have continued their ANW shortfall insurance in compliance with clause 10 of this article after termination of their employment with Philips, the conditions stipulated in clause 10 of this article are applicable. Pension Plan rules Philips flex pension (Flex 67 CLA) 15

18 9.9 The Member who is entitled to a Retirement pension from the Fund, who has reached the age of 67 and who at that time has an ANW shortfall insurance, is entitled to continue this insurance after having reached the age of 67 at an adjusted, individual premium until the time the insurance ends by operation of law in accordance with paragraph 5 under c, d or e of this article. An insurance thus continued may not be increased, but may at any time be decreased or terminated. That provided in this article s paragraph does not apply to a Member who has continued his/her ANW shortfall insurance under application of this article s paragraph 10 after the termination of his/her employment with Philips The Member for whom after termination of his/her employment with Philips a pension is still being accrued by virtue of the Plan rules Philips flex pension (Flex 67 CLA) and who at the time of termination of his/her employment with Philips has an ANW shortfall insurance, is entitled to continue this insurance until the moment the insurance ends by operation of law in accordance with paragraph 5 under c, d or e of this article. If an insurance thus continued continues beyond the Member s 67th birthday, the Fund is entitled to charge an adjusted, individual premium from that date. Any insurance continued in accordance with this article s paragraph may not be increased or decreased, but may be terminated at any time The Board of Trustees is authorised, insofar it holds to be necessary according to its reasonable judgment for fulfilling the Pension agreement, to offer the possibility of taking out an ANW shortfall insurance or to continue an existing insurance to others besides those entitled by virtue of this article, under the conditions to be set by the Board. The Board of Trustees is also authorised to deny specific categories of Members the right to take out an ANW shortfall insurance insofar as in accordance with the pension agreement, in derogation of that provided in paragraph 1 of this article For terminating ANW shortfall insurance or decreasing the amount insured, written approval of the Member s Partner is required. l 10 Exchange of pension entitlements at Retirement age Article Upon reaching the Retirement age, the (Former) Member is entitled, insofar as this is in accordance with the relevant legal requirements, to fully convert the entitlements to Survivor s pension pursuant to these Plan rules, into an entitlement to Retirement pension, provided that the Partner sends a notice of approval in writing and insofar as entitlements to Survivor s pension have been accrued upon reaching Retirement age. Instead of a full conversion of the Survivor s pension, the (Former) Member may decide on a 75%, 50% or 25% part exchange. This exchange takes place on the basis of the actuarial factors determined for that purpose by the Fund which have been included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. The Board of Trustees may set further requirements and conditions to the manner in which the Partner s approval is demonstrated. Stichting Philips Pensioenfonds 16

19 10.2 The conversion right as described in the previous paragraph of this article does not apply to the Special survivor s pension as determined in article Upon reaching Retirement age, if the Former Member converted his/her Survivor s pension into Retirement pension based on article 15, paragraph 5, the Former Member is entitled to convert part of his/her Retirement pension into an entitlement to Survivor s pension by submitting a request in writing to the Fund to this effect. The selected Survivor s pension may amount to 25%, 50% or 70% of the Retirement pension after the above-mentioned conversion. The person who at the time of the above-mentioned exchange is the Former Member s Partner, is entitled to the Survivor s pension acquired as a result of the exchange. The exchange as referred to in this paragraph does not concern the portion of the Retirement pension subject to a right to payment as referred to in article 2 of the Act on Settlement of Pension Entitlements on Divorce As a standard option, the Fund offers the Former Member the right referred to in the previous paragraph to exchange Retirement pension for Survivor s pension during the last year before the effective date of the Retirement pension. In the absence of a response of the Former Member within the period designated by the Fund, the Fund will proceed with the intended exchange, provided that the Former Member has a Partner. In that case the entitlement to Survivor s pension shall, following the above-mentioned exchange, amount to 70% of the Retirement pension The exchange as referred to in this article takes place on the basis of the actuarial factors included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually The Survivor s pension as referred to in this article takes effect from the first day of the month during which the Pensioner dies and will be paid up to and including the month during which the Partner dies If the exchange of Retirement pension for Survivor s pension as referred to in the paragraphs 3 and 4 of this article would lead to a decrease in the Retirement pension on an annual basis to a point below the Surrender limit, the proportions of Retirement pension and Survivor s pension will be adjusted to ensure that the Retirement pension will exceed the Surrender limit on an annual basis. l 11 Special survivor s pension Article If the marriage of a Member is terminated before Retirement age due to divorce or dissolution by legal separation, his/her former Partner will obtain a non-contributory entitlement to Special survivor s pension. This Special survivor s pension is equal to the entitlement to Survivor s pension that would have arisen if the participation of the Member would end as described in article 15 at the date of divorce or dissolution by legal separation, deducting any previously determined Survivor s pension relevant to a former ex-partner. The Member is obliged to immediately notify the Fund in writing of the termination of his/her marriage by divorce or dissolution by legal separation. Pension Plan rules Philips flex pension (Flex 67 CLA) 17

20 11.2 The provisions of the previous paragraph similarly apply if the Partnership, not being a marriage, ends before his or her Retirement age. The Member must immediately notify the Fund in writing of the termination of his or her Partnership If the marriage of a Pensioner or Former Member terminates due to divorce or dissolution after legal separation, his/her Partner will receive a non-contributory entitlement to Special survivor s pension if the marriage was concluded before reaching Retirement age. In such an event, the Special survivor s pension is equal to the entitlement of Survivor s pension insured on the date of the divorce or dissolution after legal separation, deducting any previously determined Special survivor s pension of a former Partner. The entitlement to Special survivor s pension is eliminated if the Survivor s pension was fully exchanged for Retirement pension as described in article 10, paragraph The provisions of the previous paragraph similarly apply if the Partnership, not being a marriage, ends. The Pensioner or the Former Member must immediately notify the Fund in writing of the termination of his or her Partnership The former Partner of the (Former) Member or the Pensioner will be sent a receipt confirming the non-contributory entitlement to Special survivor s pension as referred to in this article That provided by the preceding paragraphs does not apply if (1) the (Former) Member or Pensioner and the Partner agree/have agreed otherwise by marital or registered Partnership terms or by a cohabitation contract executed before a civil-law notary or by a written agreement with relation to the divorce, on the termination of the registered Partnership or the joint household as referred to in article 1, paragraph 14 under c, and (2) the Fund has declared in writing that it agrees and is willing to cover any risk resulting from the deviation or to adjust the level of the payments. A written request for receiving a declaration as referred to in the previous full sentence under 2 must be submitted to the Fund by both parties That provided in article 8, paragraph 3 applies by analogy to the Special survivor s pension If the former Partner dies before the Member or Former Member dies, then from the time of the death of the former Partner the entitlement to a Special survivor s pension again forms part of the pension entitlement of the Member or Former Member. The preceding sentence is not applicable to Members or Former Members who have already reached the Normal retirement age of 67 at the time when the former partner dies. l 12 Orphan s pension Article After the death of the (Former) Member or Pensioner, the Children of the (Former) Member or Pensioner are entitled to Orphan s pension. The Orphan s pension takes effect from the first day of the month during which the (Former) Member or Pensioner dies and is paid up to and including the month during which the orphan attains the age of 21 or previously dies. Stichting Philips Pensioenfonds 18

21 12.2 After a Member s death his/her children are entitled to an Orphan s pension of: - 14% of the Retirement pension accrued at the time of the death - plus 14% of the retirement pension which the Member would have attained from the date of death until the Normal retirement age on the basis of the Fixed Pension base applicable on the date of death of the Member, calculated with the following accrual rates: 1. for the remainder of the Premium year in which the Member died: the accrual rate applicable in the Premium year in question; 2. for the Premium years after the Premium year in which the Member died: the targeted accrual rate as referred to in article 5, paragraph 3. - increased by 14% of the accrual rate applicable for the Pension year of death multiplied by the variable gross elements of income which have been/will be paid and relate to the period from the beginning of the Pension year in which the Member s death takes place until the date of the Member s death, - increased by any indexations applied pursuant to article 22 of these Plan rules. The Orphan s pension for each child upon the death of a Former Member or Pensioner amounts to 14% of the non-contributory or Retirement pension in payment without factoring in any exchange of pension entitlements. The Orphan s pension is a Defined benefit agreement in nature within the meaning of the PW The Orphan s pension amounts to double the amount included in paragraph 2 of this article if both parents have died If justified according to the judgment of the Board of Trustees, the Orphan s pension may also be granted to other Children of (Former) Members who do not meet the conditions set forth in article 1, paragraph 11 of this article. The Board of Trustees may double the Orphan s pension referred to in this paragraph if it holds the opinion that such is justified If and for as long as more than 5 orphans are entitled to an Orphan s pension by virtue of this article, the amount of the Orphan s pension referred to in this article is decreased per child by multiplication by a factor the numerator of which is equal to 5 and the denominator of which is equal to the number of orphans entitled to an Orphan s pension by virtue of this article The Orphan s pension for underage Children is paid to their legal representative. l 13 Disability pension Article A Member whose employment contract with Philips was fully or partially terminated due to occupational disability is entitled to a Disability pension in the event of at least 35% occupational disability under the WIA act. This Disability pension is a Defined benefit agreement in nature within the meaning of the PW. Pension Plan rules Philips flex pension (Flex 67 CLA) 19

22 13.2 The Disability pension takes effect on the first day of the month following the month during which the employment with Philips was (partially) terminated due to disability. The Disability pension ends on the earliest of the following dates. a) The date on which the AOW pension age applicable to the Member is reached; b) The date of the Normal retirement age applicable to the Member being reached; c) The date on which occupational disability as defined by WIA drops below 35%; d) The date of death of the Member If a Disability pension has terminated on the basis of that provided in the preceding paragraph under c, the entitlement to a Disability pension is revived if disability within the meaning of the WIA has increased to over 35%, provided such increase results from the same illnesses and/or ailments which lead to the earlier granting of a Disability pension pursuant to this article The Disability pension is calculated as follows: If, on the effective date of the Disability pension, the AOP base figure of the Member does not exceed the AO-limit amount on that date, the annual Disability pension for a disability within the meaning of the WIA of at least 80%, amounts to a sum equal to 5% of the AOP base figure. If, on the effective date of the Disability pension, the AOP base figure of the Member exceeds the AO-limit amount on that date, the Disability pension on an annual basis amounts to a sum equal to 5% of the AO-limit amount, increased by an amount equal to 75% of the part of the AOP base figure exceeding the AO-limit amount Upon a disability within the meaning of the WIA of less than 80%, the monthly Disability pension amounts to a percentage of the Disability pension as calculated in accordance with paragraph 4 of this article. This percentage is equal to: 72.5% for disability from 65-80% 60% for disability from 55-65% 50% for disability from 45-55% 40% for disability from 35-45% 13.6 Upon a review of the percentage of disability within the meaning of the WIA, the Disability pension granted on the basis of this article is adjusted under application of paragraph 4 or 5 of this article with effect from the first day of the month following the effective date of the review. The Member is obliged to immediately notify the Fund in writing of any change in the disability percentage within the meaning of the WIA as referred to in this article The Board of Trustees may attach such conditions as it deems reasonable and advisable to granting, reviewing and continuing the Disability pension. The Board of Trustees observes relevant legislation and regulations on the authority of pension funds to grant supplements to a continuation benefit or a wage supplementation benefit as referred to in article 60 of the WIA. Relevant legislation and regulations shall also be taken to include any policy rules and directions from the Supervisor. Stichting Philips Pensioenfonds 20

23 l 14 Non-contributory accrual of pension Article A Member whose employment with Philips is fully or partially terminated due to disability in accordance with the provisions of paragraph 3 of this article in the sense of the WIA of at least 35%, is entitled to full or partial non-contributory continued Retirement, Survivor s and Orphan's pension. As long as a pay-related benefit, pay supplement or follow-up benefit by virtue pursuant to the WIA is received, and for the part the membership is continued due to disability, the Member is considered to be a disabled Member The (continuation of) pension accrual is subject to application of article 5, paragraph 3, first full sentence and second paragraph, on the understanding that the article for Fixed Pension base must be read as the Salary base figure for non-contributory pension accrual most recently established, decreased by the Offset, on the understanding that the calculation of the Offset must be based on the Part-time factor applicable during the month prior to the first day of absence due to illness. Article 15, paragraph 2 is similarly applicable relating to establishing non-contributory pension entitlements on termination of employment due to disability insofar this concerns the pension accrual on the variable Pensionable salary as referred to in article 1, paragraph 18 under b The (partial) non-contributory (continuation of) pension accrual described in paragraph 1 of this article takes effect from the first day of the month following the month in which employment with Philips is (partially) terminated due to disability and ends no later than the first of the following dates. a) The date on which the AOW pension age applicable to the Member is reached; b) The date of the Normal retirement age applicable to the Member being reached; c) The date on which occupational disability as defined by WIA drops below 35%; d) The date of death of the Member Upon a disability within the meaning of the WIA of at least 80%, the Member is entitled to a full non-contributory (continuation of the) accrual of pension. Upon disability of less than 80%, the Member is entitled to a partially non-contributory (continuation of) accrual of pension. The level of the partially non-contributory (continuation of the) accrual of pension is calculated according to the percentages referred to in article 13, paragraph Upon a review of the percentage of disability within the meaning of the WIA, the (partially) noncontributory (continuation of the) accrual of pension is adjusted under application of the preceding paragraph with effect from the first day of the month following the effective date of the review If after a review of the percentage of disability within the meaning of the WIA the entitlement to (partially) non-contributory (continuation of the) accrual of pension is terminated fully or partially, the Member will be granted a paid-up policy for the part of the accrual of pension which is terminated by virtue of article A Member, for the benefit of whom a non-contributory pension is being accrued by virtue of this article, is obliged to notify the Fund immediately of any change in the degree of disability within the meaning of the WIA. Pension Plan rules Philips flex pension (Flex 67 CLA) 21

24 14.7 The Board of Trustees may attach conditions to the granting and the continuation of the noncontributory (continuation of the) accrual of pension, to the insurance of the Survivor s pension, respectively as it deems reasonable and advisable. l 15 Premature termination of employment Article Upon termination of employment with Philips other than by death or disability, before reaching the Retirement age, the Former Member is allocated a non-contributory policy with entitlement to Retirement pension, Survivor s pension and Orphan s pension The non-contributory entitlements to Retirement pension, Survivor s pension and Orphan's pension are calculated in accordance with the provisions of articles 5, 8 and 12 on the termination date of the employment contract with Philips. When determining the noncontributory entitlements as referred to above, during the year of termination of the employment contract with Philips, the variable gross income components that were/will actually be paid out by Philips relating to the period from the start of the pension year during which the Member's employment is terminated to the date of the termination of the Member's employment contract are taken into account, such in derogation of the provisions of article 1, paragraph 18 under b Upon a written request by the holder of a paid-up policy as referred to in this article, the effective date of the pension(s) to which an entitlement exists under that policy is advanced or deferred, if and insofar as such is in accordance with the statutory provisions relevant to this matter. In such a case that/these entitlement(s) to pension(s) are decreased, increased, respectively, on the basis of the actuarial factors included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. The effective date of the pensions referred to in this paragraph may not be before the age of 55. Advancement is possible only insofar as there is no income from employment and/or other economic activities, in accordance with the corresponding statutory provisions. The provisions of the preceding sentence are not applicable in the event that retirement takes effect on or within five years before the AOW pension age. Furthermore, advancement requires the Partner s approval, provided that there is a claim to Survivor s pension. Article 7, paragraph 2 is similarly applicable. Deferment is possible exclusively in so far as the person involved continues working in a present employment situation. In the event of advancement or deferment as referred to in this article, the entitlements to Survivor s pension will be decreased, respectively increased, proportionally with the Retirement pension. The Board of Trustees may impose further conditions with respect to the possibility of advancement or deferment The ANW shortfall insurance as referred to in article 9 is not subject to non-contributory value. Stichting Philips Pensioenfonds 22

25 15.5 In the event of premature termination of the employment contract as referred to in paragraph 1, the Former Member is entitled to convert the entitlements to Survivor s pension to entitlements to Retirement pension, such in accordance with legal requirements and subject to the Partner's approval in writing. The Board of Trustees may set further requirements and conditions to the manner in which the Partner s approval is demonstrated. This exchange takes place on the basis of the actuarial factors determined for that purpose by the Fund which have been included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually In derogation of the previous paragraph, the Fund will proceed to full exchange of the Survivor s pension into Retirement pension if the (Former) Member has no Partner, unless the (Former) Member explicitly indicated that exchange is not desirable The conversion right as described in the previous two paragraphs of this article does not apply to the Special survivor s pension as determined in article 11. l 16 Surrender value of small Retirement pension upon termination of participation Article The Fund is entitled to surrender the accrued pension benefits of a Former Member by no sooner than two years after termination of participation, if, on the basis of the entitlement to Retirement pension accrued until the time of termination, the payment of the Retirement pension on an annual basis shall amount to less than the Surrender limit on the regular effective date, unless the Former Member has started a procedure for transfer of value as referred to in article 71 PW within two years after termination of the participation If the regular effective date of the Retirement pension falls before the expiry date of the twoyears term referred to in paragraph 1, the Fund is entitled to surrender any entitlement to Retirement pension and any other entitlements for the Pensioner or his/her surviving dependants upon the start of the Retirement pension if the payment of the retirement annual pension amounts to less than the Surrender limit on the effective date. For Former Members for whom the regular effective date falls before the AOW pension age, the retirement pension is deferred until the first day of the month after reaching the AOW pension age, unless the Former Member has expressed the wish not to defer the date of commencement of his or her retirement If the Fund exercises the right referred to in the first paragraph, it shall inform the Former Member about its decision within six months of expiration of the two-year period following termination of participation, and proceed to paying the surrender value within this six-month term. For Former Members for whom the commencement of the retirement pension is deferred under the second clause, payment takes place within six months after the date of commencement. Pension Plan rules Philips flex pension (Flex 67 CLA) 23

26 16.4 If the Fund exercises the right referred to in the second paragraph, it informs the person involved about its decision within six months following the regular start date of the pension and proceeds to paying the surrender value within that term of six months The Fund makes the surrender value of the accrued pension benefits available to the person entitled The Fund makes the payment of the surrender amount on the day the entitlements or rights lapse in connection with the surrender The Fund may surrender after the term of two years and six months referred to in the third paragraph if: a) The beneficiary agrees; and b) The level of the Retirement pension on an annual basis is lower as from 1 January of that year than the ceiling amount referred to in the first paragraph The Surrender limit as referred to in the first and second paragraph is adjusted annually in accordance with the provisions of article 66, paragraph 8 PW The factors applied for surrender in accordance with this article are set out in Appendix 2. These factors are determined by the Board of Trustees and may be subject to change from time to time, in principle annually. l 17 Surrender of small Survivor s pension or Orphan s pension upon start of pension Article The Fund is entitled vis-à-vis the surviving dependants to surrender any entitlement to Survivor s pension or Orphan s pension for the surviving dependants of the same (Former) Members if the payment of the Survivor s pension or Orphan s pension on the start date amounts to less than the Surrender limit on an annual basis If the Fund exercises the right referred to in the first paragraph, it shall inform the surviving dependant within six months following the effective date and proceed to paying the surrender value to the surviving dependant within that term The Fund may surrender the Survivor s pension or Orphan s pension after the term referred to in the second paragraph if: a) The surviving relative agrees; and b) The level of the Survivor s pension or Orphan s pension on an annual basis is less than the Surrender limit mentioned in the first paragraph as from 1 January of that year The factors applied for surrender in accordance with this article are set out in Appendix 2. These factors are determined by the Board of Trustees and may be subject to change from time to time, in principle annually. Stichting Philips Pensioenfonds 24

27 17.5 The Surrender limit as referred to in the first paragraph is adjusted annually in accordance with the provisions of article 66, paragraph 8 PW Article 16, paragraph 6 is similarly applicable. l 18 Surrender of small Special survivor s pension Article The Fund is entitled vis-à-vis the former Partner to surrender any entitlement to Special survivor s pension if the payment of the Survivor s pension on the start date amounts to less than the Surrender limit on an annual basis If the Fund exercises the right referred to in the first paragraph it shall inform the former Partner within six months following the notification of the divorce, dissolution of the marriage by a legal separation, termination of the registered Partnership, or termination of the joint household and proceed to paying the surrender value to the former Partner within that term The Fund may surrender after the term referred to in the second paragraph if a) The former Partner agrees; and b) The level of the Special survivor s pension or Orphan s pension on an annual basis is less than the Surrender limit mentioned in the first paragraph as from 1 January of that year The factors applied for surrender in accordance with this article are set out in Appendix 2. These factors are determined by the Board of Trustees and may be subject to change from time to time, in principle annually The Surrender limit as referred to in the first paragraph is adjusted annually in accordance with the provisions of article 66, paragraph 8 PW Article 16 paragraph 6 is similarly applicable. l 19 Transfer of value / Acceptance value Article The Fund shall: a) Upon written request of a Former Member transfer any entitlements to a pension to another authorised pension administrator in the case of a statutory right to transfer of value, if such transfer of value enables the person entitled to acquire pension entitlements from another institution under appropriation of that transfer amount; b) Upon written request of a Member appropriate a transfer amount offered within the scope of the statutory right to transfer of value for acquiring entitlements to a pension for that Member by virtue of these Plan rules. All this takes place if the requirements set by or by virtue of the PW are met. Pension Plan rules Philips flex pension (Flex 67 CLA) 25

28 19.2 If the statutory right to transfer of value as referred to in paragraph 1 of this article is not applicable, the Fund is authorised to transfer a pension or an entitlement to pension to another authorised pension administrator at the written request of the person entitled if the requirements referred to in article 75 of the PW are met, such with due observance of any rules set by the Board of Trustees pertaining to this matter If the statutory right to transfer of value as referred to in paragraph 1 of this article is not applicable, the Fund is authorised to appropriate at the written request of the Member a transfer amount offered by another authorised pension administrator, to acquire entitlements to a pension for that Member, such with due observance of any rules set by the Board of Trustees pertaining to this matter All transfers of value by virtue of this article take place on the basis of the actuarial factors included in Appendix 2 to these Plan rules with due observance of the rules set by or by virtue of the law subject to any changes the Board of Trustees may decide on from time to time. l 20 Maximising Article A pension debited to the Fund shall not exceed the maximum amounts as referred to in Chapter IIB of the Wages and Salaries Tax Act 1964 or other maximum amounts resulting from tax law and legislation. In the event of a statutory maximum being exceeded the pension to be debited to the Fund is decreased by the amount of the excess. Exceeding the maximum amounts due to causes described in article 18d of the Wages and Salaries Act 1964 shall not be taken into consideration The Board of Trustees may impose further conditions and limitations to the provisions of this article. l 21 Payment of pensions Article All pensions granted by virtue of these Plan rules are paid in Euros at the beginning of every month At the request of the Fund, recipients of a pension in payment are obliged to submit a declaration of being alive by means of a specific form provided by the Fund Any legal action brought against the Fund for making a pension payment shall not lapse during the lifetime of a recipient of a pension in payment If the Stichting ascertains that a pension has been granted or paid incorrectly, the granting of the pension will be reviewed or payment corrected. Reviewing or correction will take place with Stichting Philips Pensioenfonds 26

29 retroactive effect. If reviewing or correction is to the advantage of the person for whom the granting or the payment of the pension is intended, the Stichting will pay the missing amount of pension. If reviewing or correction is to the disadvantage of the person who is the recipient of the granting or the payment of the pension, the latter will be obliged to repay the incorrectly paid amount of pension. l 22 Indexation Article Conditionality statement A supplement amounting to a maximum of 100% of the level of Price inflation is granted annually on the pension rights and pension entitlements. Furthermore, if Wage inflation is higher than Price inflation, a supplement amounting to a maximum of 100% of the difference between the level of Wage inflation and Price inflation is granted on Members pension entitlements. The Board of Trustees of the Fund determines each year, however, to what extent pension rights and pension entitlements are to be adjusted. No reserve has been created for the conditional supplement up to a maximum of 100% of the level of Price inflation and no premium is paid. The supplement is financed from the return on investments. The Fund maintains the dedicated premium reserve referred to in article 4.1 for financing that portion of the annual pension accrual of 1.85% for which the available notional premium is not sufficient and, to the extent that the dedicated premium reserve has sufficient funds for this, for financing the abovementioned conditional supplement of a maximum of 100% of the difference between the level of Wage inflation and Price inflation on behalf of the active Members. The details of the method relating to the above provisions are given in this article Price and Wage Inflation Pensions in payment, non-contributory entitlements and pension entitlements accrued by Members may, if and to the extent that in the opinion of the Fund the funds of the Fund so permit, periodically be increased by a percentage of Price inflation to be determined by the Fund. The Fund maintains neither a (technical) provision nor a special-purpose reserve for this supplement. The pension entitlements accrued by Members may, if and to the extent that in the opinion of the Fund the funds of the Fund so permit, periodically be increased by a percentage of the difference between the level of Wage inflation and Price inflation to be determined by the Fund. The Fund does not maintain a (technical) provision but may maintain a portion of the dedicated premium reserve for this supplement Conditionality The indexation of the pensions in payment, the non-contributory entitlements and the entitlements to Retirement pension referred to in article 5, paragraph 4 is conditional. Annually, the Board of Trustees decides to what extent the pensions and entitlements to a pension referred to in the previous full sentence shall be indexed. There is no existing right to indexation Pension Plan rules Philips flex pension (Flex 67 CLA) 27

30 and for the longer term it is unsure if and to what extent any indexation shall take place. Any decision to grant an indexation in any year on the basis of this article forms no guarantee for any indexations to be granted in future years and does not constitute any restriction for the policy freedom vested in the Board of Trustees with respect to this matter Realisation percentage Each year, on the basis of Wage and Price inflation, the financial position of the Fund, the available funds in the dedicated premium reserve, the developments in this financial position expected by the Board of Trustees, the requirements set by or by virtue of the law and all other facts and circumstances deemed relevant by the Board of Trustees, the Realisation percentages actually to be granted are determined which apply for the period from 1 April of the current year to 31 March of the following year. There are two different Realisation percentages. 1. The first realisation percentage relates to a) The percentage of the level of Price inflation to be granted to active Members; b) The percentage of the level of Price inflation to be granted to Pensioners and sleepers ; 2. The second realisation percentage relates to the percentage of the difference between the level of Wage and Price inflation to be granted to active Members. The realisation percentages can vary from 0% to 100% of the level of Price Inflation or the difference between the level of Wage and Price inflation Equal treatment Indexations as referred to in the preceding paragraphs shall apply equally to all pensions in payment and non-contributory entitlements to a pension of (Former) Members, holders of noncontributory entitlements in connection with divorce or termination of a registered Partnership or joint household as referred to in article 1, paragraph 14, respectively Indexation and funding ratio If the policy funding ratio of the Stichting is lower than 116%, there will be no indexation in line with Price inflation. Indexation cannot be set at a level such as causes the policy funding ratio to fall below the level of 116% as a consequence of that indexation. If the policy funding ratio falls below the level of 116% as a consequence of a proposed indexation, the latter will at least be limited so as to prevent the policy funding ratio from falling below the level of 116%. On the basis of the financial position of the Fund, the developments in this financial position expected by the Board of Trustees, the requirements set by or by virtue of the law and all other facts and circumstances deemed relevant by the Board of Trustees, the Board of Trustees may decide in the event of a financially sound situation of the Fund to fully or partially reverse any reductions or to make up for missed indexation which is based on Price inflation. If and to the extent that the funds in the dedicated premium reserve are sufficient, the Board of Trustees may resolve to fully or partially make up for conditional indexations not previously granted which were based on the (positive) difference between the level of Wage and Price inflation. Stichting Philips Pensioenfonds 28

31 l 23 General expat provision Article 23 The Board of Trustees has the power to set different rules with regard to expats insofar as it reasonably considers this to be necessary for the implementation of these Plan rules. An expat is understood to mean a person who is employed outside the Netherlands and is deemed by Philips to be an expat. l 24 Amendments to the Plan rules and pension reduction Article The Board of Trustees is authorised to change these Plan rules, with due observance of that provided in the Trust Deed. In the event of any amendment to these Plan rules the pension entitlements accrued for the (Former) Members until the time of amendment shall not be adjusted, with the exception of that provided in the articles 76, 78, 83 and 134 of the PW The Board of Trustees is authorised subject to article 134 of the PW to reduce the accrued pension entitlements and/or the pensions in payment if: - In view of the policy funding ratio the Fund does not meet the requirements of or pursuant to article 131 of the PW regarding the minimum funding requirements or the requirements of or pursuant to article 132 of the PW regarding the funding requirements and - this cannot be realised within a reasonable period of time without the interests of the (Former) Members, other parties entitled to a pension, or Philips being disproportionably harmed; and - all other management tools available, with the exception of the investment policy, have been deployed as outlined in the recovery plan, as referred to in article 138 or 139 of the PW. l 25 Special provisions Article The Board of Trustees is authorised in those cases where a strict application of these Plan rules would result in unfairness, to deviate from the provisions in these Plan rules in favour of those concerned. In those cases not provided for by these Plan rules the Board of Trustees will decide Any amendments to these Plan rules resulting in a decrease of pensions, inter alia as referred to in article 14 of the Trust Deed and article 24 of these Plan rules shall in all reasonableness and fairness apply to all Members If Philips notifies the Fund in writing that Philips shall reduce or terminate its contribution as referred to in article 4, paragraph 2 due to a radical change of circumstances, the Board of Trustees supplies the Members with a copy of this statement. Pension Plan rules Philips flex pension (Flex 67 CLA) 29

32 25.4 Upon joining, the Members are informed in writing of the contents of the applicable Trust Deed and Plan rules. Within three months after an amendment to the rules relevant to the Members, the latter will be notified in writing of such amendments. Within three months after joining, the Members will receive information about the pension plan, including a summary of the pension plan in compliance with the provisions of and under article 21 of the Pensions Act Without prejudice to that provided elsewhere in these Plan rules, the Fund supplies the holder of a (non-contributory) entitlement to a pension upon his/her request with a statement on the level of the accrued pension benefits by virtue of the present Plan rules within 3 months. The Fund may request a fee for the costs involved in this statement Annually, a statement is supplied to all Members of the pensions attainable under the Plan rules, the pension accrued, as well as of the accrued pension benefits to be allocated to the preceding calendar year in accordance with article of the Wages and salaries Act 2001 and the provisions provided therein. In addition, all Members receive information about the indexation annually. The statements and information are made available with due observance of the requirements set by the PW. In the event of premature termination of the participation as referred to in article 15, and afterwards once every five years, the Former Members receive at least the information as required by and set forth in the PW. Upon the start of receiving pension and annually after that, the Fund provides the beneficiary with at least the information required by and set forth in the PW. The Fund provides the Partner with at least the information as required by and set forth in the PW at the time when the Partner acquires the status of Former Partner as referred to in article 11, and after that once every five years Any entitlements to a pension by virtue of these Plan rules may not be surrendered, alienated or abandoned, or constitute formal or de facto collateral, other than in those cases provided by or by virtue of the PW By virtue of the PW, the Supervisor is authorised to inter alia issue instructions to the Fund. Such instruction may obligate the Board of Trustees to deviate from that provided in these Plan rules, or to interpret the policy freedom vested in the Board by virtue of these Plan rules in a specific manner The Member s periods of leave are not considered as a factor in accrual of Retirement pension pursuant to these Plan rules, such in accordance with the conditions of the CLA and/or employment conditions of Philips. During a period of unpaid leave, coverage of the Survivor s pension, Orphan's pension and Disability pension will be continued subject to the provisions of article 56 of the PW and the CLA and/or other employment conditions of Philips. The previous full sentence is similarly applicable to coverage pursuant to article 14 (non-contributory pension accrual) The Fund is authorised to execute pension contracts other than as recorded in these Plan rules for the Members, and to pay out pensions to the (Former) Members and their surviving dependants, provided that Philips provides the required funds. The allocation and details of such pension entitlements or pension rights will be announced to the beneficiary in writing. Stichting Philips Pensioenfonds 30

33 25.11 Philips, or the Fund on behalf of Philips, is authorised to file a request to the Tax Administration, in accordance with the provisions of the Wages and Salaries Act 1964, to confirm that the relevant pension plan complies with the requirements pursuant to legislation. If it becomes irrevocably clear, based on the above-mentioned request, that the pension plan is not compliant with the requirements pursuant to the Wages and Salaries Act 1964, the plan will be changed into a plan that is compliant with the requirements pursuant to the Wages and Salaries Act 1964, such immediately and with retrospective effect (insofar applicable). l 26 Pension settlement / Conversion Article In the event of divorce, dissolution of the marriage by a legal separation, termination of the registered Partnership other than due to death or the missing of a person, the former Partner of the (Former) Member or the Pensioner is entitled to settlement of Retirement pension in accordance with the relevant provisions in the Equalization of Pension Rights in the Event of a Divorce Act With respect to pension settlement or conversion by virtue of the Equalization of Pension Rights in the Event of a Divorce Act, the Board of Trustees is authorised to set further rules. l 27 Complaints procedure Article 27 Anyone objecting to a decision made (or the failure to make a decision) in accordance with these Plan rules, by which he/she is directly affected in his/her interests, must notify the Managing Director of Stichting Philips Pensioenfonds in writing of his/her complaint before turning to the competent judge. Further details of the procedure to be adhered to are included in the complaints rules in Appendix 3 of these Plan rules. This complaints procedure is determined by the Board of Trustees and may be subject to change from time to time. l 28 Liquidation of the Fund Article If the Fund is liquidated in accordance with article 19 of the Trust Deed, all Members who are Philips employees shall be deemed to have left the employment of Philips at the time of the liquidation and shall be granted non-contributory entitlements to a pension, determined in accordance with article 15 of these Plan rules. Pension Plan rules Philips flex pension (Flex 67 CLA) 31

34 28.2 In the event of liquidation of the Fund, the rights of persons with a pension in payment, holders of (non-contributory) entitlements to a pension and their respective surviving dependants will be guaranteed. In the event of liquidation, the Fund has the obligation of transferring its obligations to an authorised pension administrator, as referred to in article 1 of the PW. l 29 Transitional provisions Article Transition scheme internal value transfer as per 1 January 2014 For the Members referred to in article 1, paragraph 1 under 2 of the Pension Plan rules of the Philips flex pension (Flex 67) applicable on 31 December 2014, the pension entitlements accrued pursuant to the Pension Plan rules Philips flex pension 1 April 2011 (Flex 65) became noncontributory as per 31 December 2013 in accordance with the provisions of the Pension Plan rules Philips flex pension 1 April 2011 (Flex 65). The Members referred to in this article were offered the once-only opportunity (with the option of lodging an objection) to transfer these non-contributory pension entitlements with effect from 1 January 2014, in an actuarially neutral manner based on the actuarial factors stated in appendix 2 to these Pension Plan rules, to the pension plan as formulated in these Pension Plan rules, with due observance of article 83 of the PW. The Members who objected to the aforementioned offer relating to internal value transfer have kept their non-contributory pension entitlements in the Pension Plan rules of the Philips flex pension 1 April 2011 (Flex 65). Internal value transfer means that the non-contributory pension entitlements as described above are converted into entitlements to Retirement pension, Survivor s pension and Orphan s pension in the ratio 100:70:14 and on the basis of the Normal retirement age. This ratio may vary in the event that before 1 January 2014 there has been a divorce, legal separation, termination of a registered Partnership or discontinuation of a joint household. The pension entitlements obtained after internal value transfer will be conditionally index-linked in accordance with the entitlements accrued from 1 January in the manner and on the conditions and limitations stated in article 22 of these Pension Plan rules (Philips flex pension Flex 67). All non-contributory pension entitlements pursuant to the Pension Plan rules Philips flex pension 1 April 2011 (Flex 65) will be fully cancelled in respect of the internal value transfer as described in this paragraph Transition scheme Pre-retirement scheme The provisions below relating to the Pre-retirement scheme are applicable to the Members as referred to in article 1, paragraph 1 under 2 of the Pension Plan rules of the Philips flex pension (Flex 67) applicable on 31 December 2014, insofar as the relevant Members have a Pension capital in the Pre-retirement scheme. 1. In derogation of the provisions of article 29, paragraph 1, claims to Pension capital pursuant to article 28, paragraph 2 of the Pension Plan rules Philips flex pension 1 April 2011 (Flex 65) will not be converted to pension entitlements as referred to in article Stichting Philips Pensioenfonds 32

35 29, paragraph 1. This implies that the Members as referred to in article 1, paragraph 1 under 2 of the Pension Plan rules of the Philips flex pension (Flex 67) applicable on 31 December 2014, who were eligible to claiming a Pension capital as per 31 December 2013, may, as of 1 January 2014, manage the accrued Pension capital in the same way as the period prior to 1 January 2014, in accordance with the provisions of this article and the Pre-retirement scheme rules Stichting Philips Pensioenfonds (see appendix 1). 2. The Pre-retirement scheme has the character of a Defined contribution agreement as referred to in the PW. A defined contribution contract is a Pension agreement with respect to a fixed contribution that is converted into pension payments upon retirement at the latest. The Members do not have the option to pay individual contributions to the Pre-retirement scheme. 3. The participation in the Pre-retirement scheme ends in the following cases: a) In the event of the Member s death; b) Upon termination of the Member s employment with Philips, other than by death; c) On the first day of the second month preceding the month during which the Member attains the Retirement age; d) Upon dissolution of the Fund in accordance with article 19 of the Trust Deed. Upon termination of participation to the Pre-retirement scheme based on the grounds as referred to above sub b, c and d, the Member's Pension capital accrued within the scope of the Pre-retirement scheme, in accordance with the relevant legal requirements and these rules, will be used for purchasing entitlements to Retirement pension and Survivor s pension in the proportion 100:70. Additionally, an Orphan's pension of 14% per child of the Retirement pension after conversion is insured as described in the previous paragraphs, subject to article 12 of these Plan rules. The provisions of articles 10 paragraph 1, and 15, paragraph 5 is similarly applicable. Upon termination of the participation in the Pre-retirement scheme on the ground stated under c of this article, the Member s Pension capital accrued within the scope of the Preretirement scheme during the period between the moment of termination of the participation in the Pre-retirement scheme and the Retirement age, is increased by interest payments over that Pension capital as determined by the Board of Trustees. At Retirement age, the Pension capital thus increased in accordance with the relevant legal requirements will be used to purchase Retirement pension and Survivor s pension in a proportion of 100:70. Additionally, an Orphan's pension of 14% per child of the Retirement pension after conversion as described in the previous paragraphs is insured, subject to article 12 of these Plan rules. In derogation of the above, the Board of Trustees may also allow the purchase (using the Pension capital) of other pensions or pension entitlements, or combinations thereof as set forth in these Plan rules, with or without any conditions being set. In the event of the Member s death, the Pension capital accrued up to the time of the Member s death will be used to purchase a Survivor s pension and/or Orphan s pension as described in these Plan rules. If there are no surviving relatives that may claim the Survivor s pension and/or Orphan's pension as referred to in the previous full sentence, the Pension Pension Plan rules Philips flex pension (Flex 67 CLA) 33

36 capital of the deceased Member is credited to the other participants in the Pre-retirement scheme as an extra investment return. 4. The purchase of (entitlements to) a pension by virtue of this article takes place on the basis of the actuarial factors included in Appendix 2 to these Plan rules. These factors are determined by the Board of Trustees and may change from time to time, in principle annually. The Board of Trustees may set further rules with respect to the purchase of (entitlements to) a pension as referred to in the above. Any changes to these Plan rules (Pension Plan rules Philips flex pension (Flex 67 CLA)) that lead to a reduction of the pensions as referred to, amongst others, in article 14 of the Trust Deed and article 24 of these Plan rules, shall not lead to a reduction of the Pension capital Transition plan ANW shortfall insurance The second and third full sentences of article 9, paragraph 3 shall be phrased as follows relating to the Members who concluded an ANW shortfall insurance before 1 July 2001: Increasing an existing ANW shortfall insurance is exclusively possible in those cases where taking out an ANW shortfall insurance would also be possible, except for insurances taken out before 1 July 2001, which may be increased at all times. That provided by article 9, paragraph 2 applies by analogy to any request for increasing the amount insured by an ANW shortfall insurance policy that took effect on or after 1 July Transition plan Disability pension / non-contributory pension accrual The Member whose employment contract with Philips is fully or partially terminated due to disability in the sense of the WAO (Disability Act) of at least 15% may claim a Disability pension and non-contributory pension accrual, such as far as possible in analogy to the provisions of articles 13 and 14. The Board of Trustees may attach such conditions to allocation, revision and maintenance of the Disability pension and non-contributory pension accrual as it deems reasonable and desirable Conditional supplementary allowance The Member with an employment contract with Philips and to whom article 28, paragraph 7 (Conditional supplementary allowance) of the Pension Plan rules Philips flex pension 1 April 2011 (Flex 65) was applicable as per 31 December 2013, similarly has a conditional right to supplementary allowance under the present Plan rules. This implies that the portion of the supplementary allowance not yet accrued and financed based on the Pension Plan rules Philips flex pension 1 April 2011 (Flex 65) on 1 January 2014 will be converted on 1 January 2014 to a conditional claim to life-long Retirement pension taking effect at the Normal retirement age, with a related Survivor s pension of 70% and a related conditional entitlement to an Orphan s pension of 14% per child, subject to article 12 of these Plan rules. a) The accrual and financing of the portion of the supplementary allowance as referred to in the previous paragraph will take place as of 1 January 2014 during a maximum period of 7 years. The accrual percentage amounts to 6.67% per year. b) The supplementary allowance is a conditional allowance. The full supplementary allowance will be allocated on the condition that the Member will have a consecutive employment with Philips for at least 7 years from 1 January If the period from 1 January 2014 to the Member s Stichting Philips Pensioenfonds 34

37 Normal retirement age is less than 7 years, accrual and financing of the gap amount is fully executed at the Normal retirement age. If the Member decides to advance the Retirement age, and if as a result the accrual period becomes shorter than 7 years, that provided in the previous full sentence shall apply by analogy. During the accrual period of the supplementary allowance, the entitlement will be increased annually - conditionally - by the Price inflation and, insofar as applicable, by the difference between the level of Wage and Price inflation, in accordance with the conditions and limitations stated in article 22. The indexation of the entitlement as set forth in the previous full sentence ends on the Retirement age. c) If the employment of the Member terminates before the Normal retirement age other than due to retirement, the part of the supplementary allowance already accrued and financed on the date of termination is granted to the Former Member in the form of a non-contributory pension. The non-contributory entitlements to pension as referred to in the previous full sentence are conditionally indexed for Price inflation in accordance with the method, conditions and limitations as included in article 22. The provisions of article 14 (non-contributory pension accrual) or article 29, paragraph 4, insofar applicable relating to the non-contributory pension accrual, is similarly applicable to continuation of accrual of the conditional supplementary allowance as referred to in this article. Under the Decree of 16 July 2005, Bulletin of Acts, Orders and Decrees 2005, 391, providing for rules relating to pensions and pursuant to a number of subjects from the Act amending the tax treatment of early retirement pension and introducing lifecycle plans (Implementation Decree on pension aspects of Social Accord 2004), the Stichting is legally obliged to apply the following warranty clause to the conditional supplementary allowance as stated in article 29, clause 7 of these rules. Disclaimer in relation to extra pension for years of service in the past with 15-year financing The pension that will be purchased for you because during your employment in the past you had more than one period in which less pension was accrued than is possible under the tax regulations, will not be accrued until the time when and insofar as the promised pension benefits have been financed. If your participation in the pension plan ends before these benefits have been (fully) financed, you will only be entitled to the portion of these pension benefits financed and accrued at that time. If upon termination of the participation in the pension plan no pension entitlement has yet been financed and accrued for you for past years of service, you will therefore not be entitled to this portion of your promised benefits. If an undertaking has been given to you that pension benefits will be purchased for past years of service, they must have been financed no later than within 15 years after the undertaking was given. If you retire within these 15 years, the pension benefits to be purchased must already have been financed, namely no later than at the time of your retirement. Once an undertaking to purchase pension benefits for the past has been given, in principle it cannot be withdrawn or altered. Pension Plan rules Philips flex pension (Flex 67 CLA) 35

38 l 30 Applicability and commencement, and applicable law Article The Philips flex pension rules CLA (Flex 67 CLA) entered into force on 1 January 2015 and were last altered on 1 July These pension plan rules are applicable to: a. Members to whom the prevailing Philips CLA is applicable who were in Philips service on 1 January 2015 and to whom on 31 December 2014 the Pension Plan rules of the Philips flex pension (Flex 67), as existing at that time, were applicable and b. those persons who enter Philips service on or after 1 January 2015 insofar as they qualify as Members as referred to in article 1, paragraph 1 under 1. To those persons to whom a pension or a paid-up policy with a pension entitlement was granted before 1 January 2015, as well as to those for whom, in spite of termination of their employment with Philips before 1 January 2015, pension is still being accrued after that date under the Plan rules applicable at that time, the said Plan rules are applicable as they existed at the time when the pension or the paid-up policy was granted, or at the time when employment with Philips was terminated, on the understanding that: - article 22 of these Plan rules, as they exist with effect from 1 January 2015, is also applicable with effect from the same date to those persons referred to in the preceding sentence, this taking the place of the indexation article in the Plan rules as they existed at the time when the pension or the paid-up policy was granted or when employment with Philips was terminated; and - article 11, paragraph 8 of these Plan rules, as they exist with effect from 1 January 2015, is also applicable with effect from the same date to those persons to whom before 1 January 2015 a paid-up policy with a pension entitlement was granted and/or who are accruing pension in spite of termination of employment with Philips due to disability All legal relations relating to these Plan rules between the Fund, Philips and/or a (Former) Member or Pensioner, as well as any other persons entitled to or claiming entitlement to any payment by the Fund are subject to Dutch law. Stichting Philips Pensioenfonds 36

39 Appendix 1 Pre-retirement scheme rules Stichting Philips Pensioenfonds Contents Chapter A: General 2 Article 1 Definitions 2 Article 2 Participants 3 Article 3 Investment of the Pension capital 3 Article 4 Passive / Dymix system: Principles 4 Article 5 Passive / Dymix system: Details 5 Article 6 Active: General 5 Article 7 Active: Low risk 6 Article 8 Active: Medium risk 6 Article 9 Active: High risk 6 Article 10 Active: Free choice 7 Article 11 Termination of participation 7 Article 12 Provision of information 7 Article 13 Unfairness / unforeseen circumstances 7 Article 14 Miscellaneous 8 Article 15 Applicability and commencement 8 Chapter B: Equity fund conditions 9 Chapter C: Bond fund conditions 11 Chapter D: Money Market fund conditions 12 Dymix-table 13 Appendix 1 Pre-retirement scheme rules 1

40 Chapter A: General l 1 Definitions Article 1 For the application of these Plan rules the meaning of all concepts defined in the Pension Plan rules Philips flex pension CLA (Flex 67 CLA) is identical, unless otherwise has been provided. Additionally, in these Plan rules the below terms are understood to mean: Investment fund(s) The Investment funds as referred to in article 3, paragraph 3. Investment profile The Active and/or Passive investment profile. Active investment profile The Investment profile as referred to in article 3, paragraph 1, under a. Passive investment profile The Investment profile as referred to in article 3, paragraph 1, under b. Financial year The period from 1 October of any given calendar year up to and including 30 September of the following calendar year. Participant The Participant to the Pre-retirement scheme as set out in article 29, paragraph 2 of the Pension Plan rules. Dymix table The table attached to these Plan rules as referred to in article 5, paragraph 1. Assets of the Fund The assets of either the Equity fund or the Bond fund or the Money Market fund. Redistribution of units The selling of units of participation in (an) Investment fund/investment funds, and the purchase with the capital released of units in (a) different Investment fund/investment funds in accordance with the conditions as set forth in article 14, paragraph 2. Net asset value The Net asset value as defined in article 3 of Chapters B, C and D. Pension capital The balance of past Employee contributions, the investment results (positive or negative) gained and the costs for the expense of the Participant by virtue of the Pre-retirement scheme, which are debited to the Pension capital. Appendix 1 Pre-retirement scheme rules 2

41 Pension Plan rules The Pension Plan rules of the Philips flex pension CLA (Flex 67 CLA). Switch Any change of the Investment profile or a sub-profile in accordance with article 3, paragraph 5, article 6, paragraph 1, respectively, as well as any change in the spread of the Pension capital over the Investment funds within the sub-profile free choice in accordance with article 10, paragraph 2. Switch costs The costs for performing a Switch as determined by the Board of Trustees. l 2 Participants Article 2 The Pre-retirement scheme rules are applicable to the Members to whom the provisions of article 29, paragraph 2 of the Pension Plan rules (Transition scheme Pre-retirement scheme) are applicable. The Members do not have the option of individual contributions. l 3 Investment of the Pension capital Article The Participants Pension capital is invested by the Fund in a sound manner on behalf of and for the expense and risk of the Participants through the Investment funds referred to in paragraph 3 of this article according to one of the following Investment profiles: a) Active b) Passive 3.2 Within the Active investment profile, the following sub-profiles may be distinguished: a) Low risk b) Medium risk c) High risk d) Free choice For the Passive investment profile there are no sub-profiles. Hence, a choice for the Passive investment profile is a choice for investing via the Dymix system as referred to in the articles 4 and The Investment funds referred to in paragraph 1 of this article are: a) Equity fund b) Bond fund c) Money Market fund Appendix 1 Pre-retirement scheme rules 3

42 3.4 The Investment funds referred to in the previous paragraph are no investment funds within the meaning of the law. They are part of an administrative/organisational set-up within the Fund itself to realise Investment profiles that are individually tailored to the Participant. The Investment funds are no legal persons and each form a separate part of the Fund in an administrative though not legal sense. As a result, buying and selling of units and the subsequent deliveries does not result in any movements of assets in a legal sense, but only to changes in the profile of the investments held by the Fund on behalf of the Participants. The conditions applicable to the Investment funds have been included in the Chapters B up to and including D of these Plan rules. 3.5 The Participant is entitled to change his/her Investment profile from Active to Passive and vice versa as often as shall be determined by the Board of Trustees and under further rules and conditions to be set by the Board. The adjustment is implemented by a Redistribution of units in agreement with the Participant s choice. A Participant opting for the Active investment profile is deemed to have chosen the sub-profile medium as referred to in paragraph 2 under b of this article, unless he/she indicated otherwise. 3.6 All costs in connection with the investment of the Pension capital, except if and insofar as determined otherwise by the Board of Trustees, are for the expense of the Participant and shall be debited to the Pension capital in a manner to be determined by the Board of Trustees. These costs are (without the below list being limitative): a) The costs of buying and selling of units in the Investment funds or the costs of buying and selling of financial assets (including investment funds quoted on the stock exchange or not), in which the Investment funds invest; b) Transaction costs and costs of payment transactions; c) Custodian fees; d) Taxes and levies owed; e) All costs debited by the managers of any investment funds in which the Investment funds invest, to those funds in accordance with the applicable conditions; f) Switch costs. 3.7 It is not possible to simultaneously invest a part of the Pension capital according to the Active investment profile and another part of the Pension capital according to the Passive investment profile. l 4 Passive / Dymix system: Principles Article The Dymix system ensures that, as the Retirement age of the Participant is approaching, the Pension capital is invested less and less in shares and more and more in bonds. On the first working day of the Financial year during which the Participant attains the age of 63, the Pension capital is, due to the approaching Retirement age, invested for one third part in the Money Market fund. On the first working day of the Financial year during which the Participant attains the age of 64, the Pension capital is invested for two thirds in the Money Market fund. On the first working day of the Appendix 1 Pre-retirement scheme rules 4

43 Financial year during which the Participant attains the age of 65, the Pension capital is fully invested in the Money Market fund. 4.2 Effecting investments within the scope of the Dymix system takes place by purchasing units in the Investment funds. 4.3 From 1 January 2014 no investment will take place in the Money Market fund as described in paragraph 1 of this article for those persons to whom in 1997 or 2005 no guarantee was given on the conversion rate for the appropriation of Pension capital to pension entitlements (guaranteed rate). From the age of 65, therefore, the Pension capital will continue to be fully invested in the Bond fund. l 5 Passive / Dymix system: Details Article The spread of the Participant s Pension capital over the Investment funds depends on the age of the Participant and whether or not a guaranteed rate is applicable to the appropriation of the Pension capital. The spread takes place in accordance with the Dymix table, in such a manner that the spread indicated in the table for a specific age is implemented on the first working day of the Financial year during which that age shall be reached. Implementation takes place by a Redistribution of units. 5.2 In the event of variances in the investment yield gained, the spread of the Pension capital over the Investment funds during the Financial year will start deviating from the percentages indicated in the Dymix table. In accordance with that provided in the preceding paragraph, the Fund ensures that the spread exactly matches (once again) the Dymix table on the first working day of the Financial year. l 6 Active: General Article The Participant is entitled to adjust his/her sub-profile (as referred to in article 3, paragraph 2) within the Active investment profile as often as shall be determined by the Board of Trustees and subject to further rules and conditions to be set by the Board. Implementation of the adjustment takes place by a Redistribution of units in agreement with the Participant s choice. 6.2 It is not possible to simultaneously invest the Pension capital according to more than one subprofile Appendix 1 Pre-retirement scheme rules 5

44 l 7 Active: Low risk Article % of the Pension capital is invested in the Bond fund and 33% in the Equity fund. 7.2 In the event of variances in the investment yield gained, the spread of the Pension capital over the Bond fund and the Equity fund during the Financial year will start deviating from the percentages referred to in the preceding paragraph. The Fund ensures that the spread exactly matches the percentages referred to in the preceding paragraph (again) once a year, on the first working day of the Financial year. For this purpose a Redistribution of units takes place on that day insofar as necessary. l 8 Active: Medium risk Article % of the Pension capital is invested in the Bond fund and 50% in the Equity fund. 8.2 In the event of variances in the investment yield gained, the spread of the Pension capital over the Bond fund and the Equity fund during the Financial year will start deviating from the percentages referred to in the preceding paragraph. The Fund ensures that the spread exactly matches the percentages referred to in the preceding paragraph (again) once a year, on the first working day of the Financial year. For this purpose a Redistribution of units takes place on that day insofar as necessary. l 9 Active: High risk Article % of the Pension capital is invested in the Bond fund and 67% in the Equity fund. 9.2 In the event of variances in the investment yield gained, the spread of the Pension capital over the Bond fund and the Equity fund during the Financial year will start deviating from the percentages referred to in the preceding paragraph. The Fund ensures that the spread exactly matches the percentages referred to in the preceding paragraph (again) once a year, on the first working day of the Financial year. For this purpose a Redistribution of units takes place on that day insofar as necessary. Appendix 1 Pre-retirement scheme rules 6

45 l 10 Active: Free choice Article The Pension capital is invested in one or more of the Investment funds according to the free choice of the Participant The Participant is entitled to adjust the spread of the Pension capital over the Investment funds as often as shall be determined by the Board of Trustees and subject to further rules and conditions to be set by the Board. The adjustment is implemented by a Redistribution of units in agreement with the Participant s choice. l 11 Termination of participation Article 11 Upon termination of the participation in the Pre-retirement scheme, the Pension capital is appropriated in accordance with that provided in article 29, paragraph 2 of the Pension Plan rules. Any withdrawal of the Pension capital in cash, or release to the Participant of securities or other financial assets in which has been invested eventually through the Investment funds, is not possible. l 12 Provision of information Article Once every quarter the Participant receives a statement on the amount of his/her Pension capital as at the last working day of the previous quarter Once every calendar year the Participant receives a statement on the amount of his/her Pension capital as at the last working day of the previous calendar year If the Participant opted for the Active investment profile, the Fund advises the Participant about spreading the investments according to the duration of the period until the retirement date, where the investment risk is reduced as the retirement date approaches. The Fund examines at least once a year whether the investments of the Participant are within the limits applicable on the basis of the previous full sentence and informs the Participant accordingly. l 13 Unfairness / unforeseen circumstances Article 13 The Board of Trustees is authorised in those cases where a strict application of these Plan rules would result in unfairness, to deviate from the provisions in these Plan rules in favour of those concerned. In Appendix 1 Pre-retirement scheme rules 7

46 those cases not covered by these Plan rules, the Board of Trustees decides with due observance of the interests of all Participants involved. l 14 Miscellaneous Article Unless otherwise has been provided by the Board of Trustees or in these Plan rules, any requests for adjustment of an Investment (sub-)profile as referred to in article 3, paragraphs 1 and 2, or for adjusting the spread of the Pension capital over the Investment funds, must be submitted in writing to the Fund using the appropriate form. The Board of Trustees is authorised to require that certain media or forms be used, also for communicating with the Fund on other matters. If any prescriptions of the Board of Trustees are lacking, all communication intended to have legal consequences between the Participants and the Fund must take place in writing Unless otherwise has been provided explicitly in these Plan rules: a) A Redistribution of units takes place against the regular buying and selling prices, as resulting from the Chapters B up to and including D of these Plan rules; b) The Participant is only due Switch costs for a Redistribution of units if the Redistribution of units is the result of a Switch Unless explicitly indicated otherwise, all article references in this chapter refer to articles of Chapter A of these Plan rules. l 15 Applicability and commencement Article 15 These Plan rules became effective as per 1 January 2009 and were most recently updated as per 1 April These Plan rules are not intended to implement any material changes compared with the previous rules; for a further explanation, please refer to article 29, paragraph 2 of the Pension Plan rules. Appendix 1 Pre-retirement scheme rules 8

47 Chapter B: Equity fund conditions 1. Assets, Participants, Units 1) The Assets of the Fund are formed by the sum of all investments (including liquid assets and receivables), decreased by the debts and costs to be debited to the fund. 2) The assets are divided in units of participation. Each unit gives an entitlement to a proportional share in the Assets of the Fund. 2. Investments, Management, Administration 1) The Assets of the Fund shall be invested in a sound manner in securities quoted on the stock exchange and in other financial assets, including without being limited to, units in Investment funds quoted on the stock exchange or not, and in derived financial instruments (derivatives) under due observance of the guidelines and conditions set by the Board of Trustees. 2) When investing the Assets of the Fund, the Fund acts solely in the interest of the Participants. The Fund is free in the choice of investments subject to that provided in the previous paragraph. It is at all times entitled to bring about all adjustments to the investments that it deems to be in the interest of the Participants. It may sell current investments and purchase others and it may decide to refrain from investing larger or smaller amounts of the Assets of the Fund (to hold in liquid assets) as it deems advisable at a given time or if it holds the opinion that investing had better be postponed until a later point in time. The Fund is entitled to purchase partly paid-up shares. 3) The Fund is entitled to hedge the currency risk on foreign stock in full or partially. 4) The Fund ensures that that there is at all times a distinct administrative separation between the Assets of the Fund and the other Assets of the Fund and records both in its annual report. 5) The books of the Fund serve as full proof between the parties with respect to the number of units held by each Participant, subject to proof to the contrary to be supplied by the Participant. 3. Determination of the Net asset value 1) The Net asset value of a unit is equal to the Assets of the Fund divided by the number of outstanding units. 2) The investments are valued on the basis of their current value, subject to the following: Any investments quoted on the stock market are valued on the basis of the closing prices for the day preceding the day on which the valuation takes place, or, if on that day no stock market trading has taken place, on the basis of either the most recent preceding closing prices or estimate, such at the discretion of the Fund. Any non-quoted investments are valued on the basis of an estimate. Valuation on the basis of an estimate shall take place under due observance of the usual criteria for such matter. 3) Insofar as is required, in derogation of that provided in the preceding paragraph, all receivables, liquid assets, and debts are valued on the basis of nominal value, under due observance of the usual criteria for such matter. Appendix 1 Pre-retirement scheme rules 9

48 4) Income and expenditure are taken into account and shown in the period to which they relate. Assets and liabilities expressed in foreign currency are converted to Euros at the current exchange rates as at the balance sheet date. Income and expenditure during a period which are expressed in foreign currency are converted to Euros at the exchange rates applicable at the time these items are realised. All exchange rate differences are incorporated in the Assets of the Fund. 5) The Net asset value of the units is determined at the monthly rate. 4. Purchase price Units may exclusively be purchased for a Participant on dates determined by the Board of Trustees. The purchase of a unit for a Participant takes place by payment of the purchase price to the fund. Payment of the purchase price is exclusively possible by using employee contributions and with capital released as a result of the sale of units in the Bond fund or the Money Market fund. The purchase price of a unit is the Net asset value of that unit on the working day previous to the day of purchase, increased by a fee, to be determined by the Board of Trustees, which is credited to the fund. The date of purchase is the working day on which the purchase price was received by the Fund. 5. Termination of participation The participation in the fund ends by operation of law in those cases where the participation in the Pre-retirement scheme terminates in accordance with that provided in article 29, paragraph 2 of the Pension Plan rules. In the event of termination of the participation in the fund, the units of the Participant involved are sold and the capital released is appropriated in accordance with that provided in article 29, paragraph 2 of the Pension Plan rules. 6. Selling price Any units held on behalf of a Participant may not be transferred and may be sold to the fund exclusively on dates determined by the Board of Trustees. Any sale takes place against payment of the selling price by the fund. Payment of the selling price by the Fund to the Participants shall take place in no circumstances whatsoever. The selling price is appropriated for purchasing units in the Bond fund and/or the Money Market fund, or in accordance with that provided in article 29, paragraph 2 of the Pension Plan rules. The selling price of a unit is the Net asset value of that unit on the working day preceding the sale, decreased by a fee to be determined by the Board of Trustees, which will be credited to the fund. The date of sale is the working day on which the selling price is paid. 7. Costs The following costs may be debited to the fund by the Fund: a) Transaction costs and costs of payment transactions; b) All other costs which in the opinion of the Board of Trustees must come to the debit of the fund which may include inter alia costs in connection with the management, administration and holding (including collection expenses) of the Assets of the Fund; c) Taxes and levies imposed on the fund as such. Appendix 1 Pre-retirement scheme rules 10

49 Chapter C: Bond fund conditions The conditions of the Bond fund are equal to the conditions of the Equity fund, on the understanding that: 1. The last two full sentences of article 2, paragraph 2 of Chapter B are deleted; 2. The second full sentence of article 4 of Chapter B reads as follows: Payment of the purchase price is exclusively possible by using capital released as a result of the sale of units in the Equity fund or the Money Market fund. 3. The fourth full sentence of article 6 of Chapter B reads as follows: The selling price is appropriated for purchasing units in the Equity fund and/or the Money Market fund, or in accordance with that provided in article 29, paragraph 2 of the Pension Plan rules. Appendix 1 Pre-retirement scheme rules 11

50 Chapter D: Money Market fund conditions The conditions of the Money Market fund are equal to the conditions of the Bond fund, on the understanding that: 1. The second full sentence of article 4 of Chapter B reads as follows: Payment of the purchase price is exclusively possible by using capital released as a result of the sale of units in the Equity fund or the Bond fund. 2. The fourth full sentence of article 6 of Chapter B reads as follows: The selling price is appropriated for purchasing units in the Equity fund and/or the Bond fund, or in accordance with that provided in article 29, paragraph 2 of the Pension Plan rules. Appendix 1 Pre-retirement scheme rules 12

51 Dymix-table with guaranteed rate Age Equity fund Bond fund Money Market fund Total until Guaranteed rate: guarantee on the rate applicable for appropriation of the pension capital for pension entitlements. Dymix-table without guaranteed rate Age Equity fund Bond fund Money Market fund Total until Appendix 1 Pre-retirement scheme rules 13

52

53 Appendix 2 Actuarial factors Listed under General in this appendix are some general principles that apply at present to the Stichting s actuarial factors. These factors are used to determine the entitlements and benefits of (Former) Members. The applicable factors are also stated for a number of specific cases, with references to the relevant articles of the pension plan rules. General In all cases in which pension benefits are transferred or converted, in any way whatsoever, to other pension benefits, the general principle which applies is the collective actuarial equivalence of the benefits before and after the conversion. The factors are the same for men and women. The factors apply from 1 June The principles on the basis of which the factors are calculated may vary from the principles arising from the Actuarial and Technical Business Report which apply to the Stichting at any time. Article 5, clause 7 Increase in pension to the age of 72 (High-low scheme), at age of 67 Before change After change Lifelong retirement pension Retirement pension from 67 to 72 Retirement pension from 72 1,000 1, ,000 1, ,000 1, Article 7, clause 1 Advancement of retirement pension (incl. 70% survivor s pension), retirement age 67 New retirement age Retirement pension from the age of 67 Retirement pension from new retirement age 66 1, , , , , , , Appendix 2 Actuarial factors 1

54 Article 7, clause 2 Purchase of bridging benefit until AOW age New retirement age Retirement pension from retirement age Bridging benefit until the age of ,000 23, ,000 11, ,000 8, ,000 6, ,000 5, ,000 4, ,000 3,951 Article 7, clause 3 Deferral of retirement pension (incl. 70% survivor s pension), retirement age 67 New retirement age Retirement pension New retirement pension from retirement age 68 1,000 1, ,000 1, ,000 1,153 Article 10, clause 1 Exchange of survivor s pension for retirement pension at retirement age Retirement age Survivor s pension before exchange Retirement pension after exchange 60 1, , , , , , , , Appendix 2 Actuarial factors 2

55 Article 10, clause 3 Exchange of retirement pension for survivor s pension at retirement age of 67 Survivor s pension as a percentage of retirement pension after exchange Retirement pension before exchange Retirement pension after exchange Survivor s pension 70% 1, % 1, % 1, % 1,000 1,000 0 Article 15, clause 3 Advancement of retirement pension (incl. 70% survivor s pension), retirement age 67 New retirement age Retirement pension from age of 67 Retirement pension from new retirement age 66 1, , , , , , , , , , , , Appendix 2 Actuarial factors 3

56 Advancement of retirement pension, retirement age 67* New retirement age Retirement pension from age of 67 Retirement pension from new retirement age 66 1, , , , , , , , , , , , * with no survivor s pension insured Deferral of retirement pension (incl. 70% survivor s pension), retirement age 67 New retirement age Retirement pension New retirement pension from retirement age 68 1,000 1, ,000 1, ,000 1,153 Deferral of retirement pension, retirement age 67* New retirement age Retirement pension New retirement pension from retirement age 68 1,000 1, ,000 1, ,000 1,192 * with no survivor s pension insured Appendix 2 Actuarial factors 4

57 Article 15, clause 5 Exchange of survivor s pension for retirement pension upon termination of employment Age on date of termination of employment Survivor s pension before exchange 18 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Retirement pension after exchange Appendix 2 Actuarial factors 5

58 Article 16, clause 9 Surrender of retirement pension Age Retirement pension Surrender value of retirement pension at retirement age of ,000 6, ,000 6, ,000 7, ,000 7, ,000 7, ,000 7, ,000 7, ,000 8, ,000 8, ,000 8, ,000 8, ,000 8, ,000 9, ,000 9, ,000 9, ,000 9, ,000 10, ,000 10, ,000 10, ,000 10, ,000 11, ,000 11, ,000 11, ,000 12, ,000 12, ,000 12, ,000 12, ,000 13, ,000 13, ,000 13, ,000 13, ,000 14, ,000 14, ,000 14, ,000 14, ,000 15, ,000 15, ,000 15, ,000 15, ,000 15, ,000 16, ,000 16, ,000 16, ,000 16, ,000 17, ,000 17, ,000 17, ,000 17, ,000 18, ,000 18,372 Appendix 2 Actuarial factors 6

59 Surrender of insured survivor s pension Age Survivor s pension Surrender value Appendix 2 Actuarial factors 7

60 Article 17, clause 4 Surrender of survivor s pension that has started Age Survivor s pension that has started , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,766 Surrender value Appendix 2 Actuarial factors 8

61 Surrender of orphan s pension Age Orphan s pension Surrender value , , , , , , , , , , , Appendix 2 Actuarial factors 9

62 Article 18, clause 4 Surrender of special survivor s pension Age Special survivor s pension Surrender value Appendix 2 Actuarial factors 10

63 Article 29, clause 2 Purchase of entitlements from pension capital (incl. 70% insured survivor s pension) Retirement age Capital Immediately payable lifelong benefit 60 10, , , , , , , , Appendix 2 Actuarial factors 11

64 Purchase of entitlements from pension capital after death Age Capital Immediately payable lifelong benefit 25 10, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Appendix 2 Actuarial factors 12

65 Purchase of entitlements from pension capital upon termination of employment Age Capital Retirement pension from 67 incl. 70% survivor s pension 25 10, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Appendix 2 Actuarial factors 13

66 Article 19: Transfer of value In derogation of the above, it applies that collective value transfers in accordance with this article take place on the basis of the actuarial base figures determined for this purpose by the Fund, Individual value transfers in accordance with this article take place if agreements have been made with the pension administrator to whom the transfer value is transferred, or from whom the transfer value is received about the base figures to be operated upon transfers of value, on the basis of those agreements, and in other cases on the basis of the rules set by or by virtue of the law. The base figures determined by the Fund for collective or individual transfers of value, may deviate from the base figures applicable at any time to the Fund, as resulting from the ABTN. Appendix 2 Actuarial factors 14

67 Appendix 3 Complaints procedure pensions Stichting Philips Pensioenfonds Contents Article 1 Terms and definitions 2 Article 2 Submitting a complaint 2 Article 3 Processing of a complaint 2 Article 4 Appeal 3 Appendix 3 Complaints procedure pensions 1

68 l 16 Terms and definitions Article 1 The following terms and definitions apply to these pension rules: 1.1. Executive Board: the Executive Board plus the Legal Advisor of Philips Pensioenfonds Complaint: each objection in writing sent by a stakeholder against a decision of Philips Pensioenfonds or its pension administrator in the context of execution of the Pension Plan rules Complainer: the stakeholder submitting a complaint Pension administrator of Philips Pensioenfonds: PGGM Pensioenbeheer B.V Philips Pensioenfonds: Stichting Philips Pensioenfonds. l 17 Submitting a complaint Article A complaint in writing at least contains: a) The name and address of the complainer; b) A date (of the letter); c) A description to make the complaint as clear as possible; d) The signature of the complainer and/or his/her proxy. 2.2 A complaint in writing may be sent to: Mr. J. Kemme, Managing Director C/o Philips Pensioenfonds P.O. Box JZ EINDHOVEN, NETHERLANDS l 18 Processing of a complaint Article Philips Pensioenfonds pension administrator registers the complaint, and sends a letter of confirmation to the complainer within 10 working days of receiving the complaint. The confirmation letter states the date on which the complaint will be discussed by the Executive Board. Appendix 3 Complaints procedure pensions 2