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Contribution Policy

Conditions about the amount of the annual pension contribution to be paid by Unilever Nederland to Progress are set out in the Implementation Agreement ( Uitvoeringsovereenkomst). This contribution is based on the amount that is necessary for the annual accumulation of pension entitlements. Depending on Progress's financial position, Unilever either pays an additional contribution, or an amount is deducted from its contribution. The conditions can be outlined as follows:

If the real funding ratio... What happens to the contribution?
is regularly lower than 80% during a consecutive period of one year, Unilever deposits an extra amount up to 80% of the real funding ratio.

mostly hovered between 80% and 100% in the previous financial year,

Unilever will pay an additional contribution.
was mostly higher than 100% in the previous financial year,  An amount is deducted  from the contribution.
was higher than 130%, Unilever can request Progress to pay the surplus to Unilever. This is subject to a number of conditions, which include requesting recommendations from the Participation Council (Deelnemersraad).

Unilever may charge a portion of the contribution to be paid to the employees. Currently (January 2012), the employees' contribution comprises 0.5% for the salary portion between the offset of EUR 13,173 and EUR 64,160; above EUR 64,160, the annual contribution is 3%. The regulations allow a maximum contribution of 5% of the pension base (i.e. the pensionable salary minus the offset).