What about my pension?

It’s time to act!

RBS announced changes to its Corporate

& Institutional Banking Division with

significant impact for all of us in NL.

Stick with me and learn what will happen

after you leave employment.

I will get you on track.

Once you know, act on it!

Still going strong

The pension fund is financially robust with a conservative investment policy and a high premium paid into the fund for new accrual and the reimbursement of costs.

•Funding ratio 135%o Hurdle for full indexation of 127%o Based on market rates: 119%

•Expected retention of purchasing power: 99%o feasibility testo In 5% of worst-case scenarios expected retention is 65%

•Average premium is 62% of pensionable salary in 2015

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Starting with you, why act?

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Your pension benefits

Your pension with RBS NL Pension Fund breaks-up in:

1.Old age pension• Based on average pay throughout your career

• Up to EUR 100k

• 1.875% annual accrual over 42 years

• Offset of EUR 12,642 to account for statutory old age state pension (AOW)

2.Survivor benefits• Capital accrual rather than risk cover

• Partner’s pension: 70% of old age pension

• Orphan’s pension: 20% of partner’s pension per child

3.Premium waiver in case of disability

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What are your other RBS benefits?

You may also have received Uniform Pension Statements (UPS) from:

•ABN AMRO Pensions: net pension scheme >EUR 100k•Delta Lloyd: disability insurance (WIA excedent)

o Income replacement after two years of disability (>35%) until old age pension (AOW) entitlement commences

•De Goudse: insurance to cover gap in surviving dependants’ pensiono Defined benefit insurance payment for spouse until old age pension entitlement

commences

These benefits are arranged via the RBS HR department. For questions please contact HR Delivery Services or your insurance company.

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What happens when you leave?

• Pension accrual stops

• Statement of accrued rights provided

• Benefits for surviving dependant will be based on accrued old age pension entitlement

• No more premium waiver in case of disability

• No more disability insurance with Delta Lloyd

• No more surviving dependants’ benefit gap insurance with De Goudse

• Accrual in ABN AMRO Net Pension scheme will end

• Uniform Pension Statement will be sent every five years

• Pension benefits will be paid as from the pensionable age

If you find new employment

What are your options?

•You can leave your accrued benefits with the RBS NL Pension Fund•You can transfer your accrued benefits to the pension scheme or insurance policy of your new employer•Commutation is allowed for small pensions up to EUR 462,88, but can be initiated only by the RBS NL Pension Fund

o no sooner than two years and no later than two and a half years after termination of the employment or at the actual retirement date if that date occurs earlier.

What is a value transfer?

A transfer of your pension rights from the scheme of your former employer(s) to your subsequent employer.

•Old age pension•Survivor benefits•Designed to prevent or limit any loss of pension rights•Transfer mechanism is regulated

Should I transfer my pension?

Case specific, but pay attention to at least following aspects:•You transfer your nominal pension rights, leaving the surplus behind•Financial set-up of pension schemes

o Funding ratioo Premium as % of pensionable salaryo Pension result

•Policy for granting indexation •Shortfall guarantee sponsor•Defined benefit or defined contribution•Flexibility of the scheme•It might not always be possible to transfer, for example because:

o The funding ratio of the scheme of your new employer might not allow for ito A required additional lump sum is declined by the employero A request was made more than six months after you leave your employment

How can you initiate the transfer?

• Request a transfer with your new pension administratoro Within 6 months after you stop being employed by RBSo Information request will be sent to the RBS NL Pension Fund

• You will receive a proposalo You can accept the proposal or noto Seek expert advice

• If you accept the proposal, your new pension administrator will retrieve the transferrable value from the RBS NL Pension Fund

• The value must be translated into entitlements under the new pension scheme• The value is transferred• The outcomes must be entered into the administration and the participant should be

informed accordingly

Can you transfer abroad?

What is possible?

•Keep your pension rights with the RBS NL Pension Fund•Transfer your pension rights abroad, a so-called international value transfer

• Case specific• Requires specialist advice• More often than not a transfer does not materialise

•Within the EU you are entitled to a value transfer• Additional DNB requirements• Conditions Dutch tax authorities

If you are planning to move abroad, please remember to provide the fund with your contact details.

Can our fund be sustained?

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Stakeholders’ interests

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Stakeholders’ interests (2)

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Alternatives to RBS NL Pension Fund

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Can I take my money out?

What are the possibilities around commutation of pension rights?

•Dutch Pension Act (art. 65) does not allow commutation of pension

•However, commutation is allowed for small pensions up to EUR 462,88 (2015)

•Commutation is a unilateral right of the administrator (and not yours) as a means of

economising on administration costs

•The net present value of the annual pension payments will be paid into your account and

added to your annual income.

•Progressive income tax will be levied

It is not possible to take your money out of a pension scheme by means of commutation.

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Can I transfer to a PPI?

Some participants have indicated to perceive this to be a better way of accruing capital

•A premium pension institution (PPI) is a low-cost solution for the accrual of pension capital

•Risks are shifted to the participants

•Ownership rights are clearly defined without adverse effects of intergenerational solidarity

•Participants may decide to invest according to their own beliefs

However

•A PPI cannot provide annuities or provide insurance against longevity or morbidity risks. As

such it is only a partial solution.

•Participants of the scheme that receive a pension (including widows and orphans) cannot be

serviced by a PPI

•In addition our financial set-up gives cause to several tax issues

•Our pension fund cannot be liquidated into a PPI and participants need to individually

consent to a value transfer at 100% (rather than the higher funding ratio of the RBS NL

Pension Fund). An alternative needs to be provided for those who opt-out regardless.

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Why are we looking at the APF?

With the ABN AMRO Pension Fund no longer a viable option the Pension Fund is studying the

Algemeen Pensioen Fonds (APF) with great interest. This is our current thinking:

•We aim for a similar pension result with an alternative provider

•APFs are being set-up by reputable parties and the challenge is to pick a leading

consolidator with a sound reputation, good credit quality and a credible investment policy

•Solution can be structured without future governance requirements

•Possibility to opt for a ring-fenced solution, although current preference is for a pooled

solution

•Indicative quotes are very attractive, cutting costs by at least 2/3rd

•APF seems feasible from a tax perspective

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APF will prove successful

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Good momentum as APF brings a solution to the supply and demand side of the industry

What are our timing considerations?

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Now you know, act on it!

• Make an assessment of your pension arrangementso Our OnTrack module can help you with thato Accessible via our website www.rbsnlpensionfund.como Our pension planner can provide insight in flexible solutions if you are approaching

the pensionable age• A financial advisor can help you with financial planning

o This could be someone you already know, your bank or a specialist financial planner• Initiate a value transfer to the pension scheme of your new employer, provided this makes

economic sense and is allowed by the regulator• Arrange insurance to cover the risk of disablity and possibly additional risk coverage for

survivor benefits

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References

• RBS NL Pension fund• www.rbsnlpensionfund.com• info@pensioenfondsrbs.nl• Telephone: 013-462 35 49

• www.mijnpensioenoverzicht.nl

• Uniform Pension Statement (UPS)

Other pension and insurance-related products• Contact HR Delivery Services• Delta Lloyd disability insurance: +31 20 594 8100• De Goudse insurance to cover gap in

surviving dependants’ pension: +31 182 544 949• ABN AMRO Pensions: +31 20 58 31 111

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Now you know, act

on it!

- run OnTrack or

- use pension planner,

- decide on value transfer,

- review insurances