The contributions for the members of the Board of Management are defined as a percentage of income as determined by the Supervisory Board. Currently, they are based on age. In principle, the premiums are paid over the base salary in the current year (which may include base salary payments to Board members who step down or have agreed to step down prior to their regular retirement age for effective succession planning as described under Employment agreements) and the short-term incentive of the previous year. The premiums will therefore vary depending on the performance during the previous year and the age of the Board member. External reference data can be used in determining market competitive levels of pension arrangements.
The pension entitlements at pension age depend on the premiums received and the investment results during the period. Depending on whether the pension entitlements qualify as a pension under the Dutch Pension Act, they are reported as “post-employment benefits” (pension) or “other post-employment benefits” (similar post-employment benefits).