Your pension, your future
Love your future. Shell Pension.

November 2020

SNPS. Smarten up your future
Annual Report 2020 – Shell Nederland Pensioenfonds 

Management model

SNPS has one board, which includes both executive and non-executive board members. The non-executive part of the board consists of five members: an independent chairperson, two employer representatives and two employee representatives. The executive part of the board consists of two directors who are employed by SPN. You will find the composition of the Board in Annex 3 of the browsable Annual Report

The management model is also known as a ‘one-tier board’. This is the so-called reverse-mixed model. The non-executive board members are mainly responsible for determining the (strategic) policy of SNPS and for providing internal supervision of the directors’ performance. Only a non-executive director may perform the duties of board chair. The executive directors handle the daily (operational) management of the pension fund and policy preparation.

Secure pension

A pension fund with a one-tier board is required to have a compulsory audit committee, unless the non-executive board members can demonstrate sufficient knowledge and experience in risk management, investment policy, outsourcing and financial disclosure. This is the case with the SNPS board members: the board has been exempted by the Dutch Central Bank (DNB) from establishing an audit committee. SNPS therefore attaches great importance to paying extra attention to the policy areas of risk management, investment policy, outsourcing and financial disclosure.

The pension fund also has an Accountability Body (VO). The VO advises on the policy determined by the Board and at the end of each year also evaluates the policy. Here the VO reviews how the policy has been implemented by the Board. This is done by following the requirements set by or pursuant to the Pensions Act. The VO has six seats. Two of them are filled by employer representatives, the other four by representatives of employees who are participating in one or both of the SNPS pension schemes. As less than 10% of the participants are retired, no pensioners are members of the VO.

“The board regularly communicates with each other in an open manner. Communication lines are short”

Working methods within the Board

The board communicates regularly with each other in an open manner. Communication lines are short. The working method within the board is defined in the internal board protocol. This contains the principles and agreements that the board members have made with each other. The SNPS board protocol confirms the board’s area of responsibility.

The board met five times in 2020, with one meeting devoted entirely to adopting the 2019 Annual Report. In the other board meetings, the board dealt with various subjects. In addition, the board participated in several interactive workshops during the year and a number of knowledge sessions about the Pension Agreement were held. In addition, a thematic knowledge session on investments is held every quarter. APS made one presentation to the board.

Up-to-date knowledge

SNPS believes it’s important that the board is flexible in its implementation and able to adapt to changes. Constant curiosity keeps you going. That is why in 2021 the SPN Academy is once again emphasising ‘learning by doing’, for example, through involvement in projects or in a particular policy area. These activities are in line with the ‘70-20-10’ learning philosophy known within Shell. That is: 70 per cent of learning effectiveness comes from professional experiences, 20 per cent is obtained by learning from others (training-on-the-job) and 10 per cent comes from formal training. The strong focus on ‘learning by doing and learning from each other’ requires board members to have a professional attitude and specific competences, such as cooperation, environmental awareness and a reflective capacity. The SPN Academy monitors the progress of these agreements and participation in seminars and workshops is registered. Based on discussions between the Chair and board members, an individual training plan has been designed for each board member and determined for 2021.

Compliance with ‘Pension Funds Code’

The SNPS board, but also organisations to which SNPS has outsourced work, are obliged to comply with the ‘Pension Funds Code’. If the Board does not do so, it must explain how and why it is deviating from this. The Code of Conduct contains standards for good pension fund management and a transparent management model. The value of the code lies in dialogue and considered decision-making. There is room to deviate from the standards, provided this is done in a well-considered manner. How pension funds deal with the intentions of the code is therefore decisive for its functioning. A Compliance Officer has been appointed to oversee the implementation and effectiveness of this Code of Conduct. Each year, compliance with the Code of Conduct for the past and the coming year is confirmed. In the year under review, the Compliance Officer did not find any material violations and did not report any incidents to the DNB. This is a ‘compliance-oriented’ organisation. SNPS has complied with all the standards of the Pension Funds Code throughout the reporting year.

Adoption of the board report by the Board

The Board of Shell Nederland Pensioenfonds Stichting adopted the 2020 Board Report.

The Hague, 27 May 2021

M.J. ten Brink
Board chair

B.C. Koch
A.K. Kroeze
B.N. de Mönnink
N. van der Toorn
K. Yildirim
M.P. van ‘t Zet

Evaluation of the board’s own performance

In November 2020, the board’s annual internal self-evaluation took place. Prior to the self-evaluation, the Chair conducted individual interviews with board members on their performance within the board. In this context, the Chair also spoke with the Dean of the SPN Academy. Based on these discussions, the individual training plan for each board member has been updated and recorded for 2021 in the SPN Academy, the learning portal for SNPS and others.