Indexation objective
Our aim is to increase current pensions received by pensioners and the accumulated pension entitlements of former employees on 1 January of each year, in line with price movements. Information on price movements is based on the Consumer Price Index ( Consumentenprijsindex), determined annually by Statistics Netherlands. This indexation is conditional; based on the real funding ratio, the Progress Board of Directors determines whether this increase can actually be applied.

Unilever Nederland and Progress agreed in the Implementation Agreement that the current pensions of the pensioners and the accumulated pension entitlements of the former employees will not be indexed if the funding ratio is lower than 80%.

Subsequent indexation
An indexation that has not been applied can still be applied at a subsequent stage; however, this subsequent indexation is subject to stricter requirements than regular indexation, i.e. a real funding ratio of at least 100%. This would apply when there is sufficient capacity available again for all existing pension entitlements and future indexations; the 'compensation limit' of 100% is also set out in the Implementation Agreement.

Indexation for the past
The table shows indexation for the pensioners and former employees over the past several years; in addition to the indexation rate, you will read what the projected rate was under the indexation policy.

As you see, we fully achieved our indexation objectives for the pensioners and former employees (based on the Consumer Price Index) up to and including 2008. The only time we did not accomplish this was for 1 January 2009, as the financial position of our fund as at 31 December 2008 did not allow a pension increase. The missed indexation of 2.53% of 1 January 2009 may still be applied by Progress in a subsequent year, although this is only possible if the real funding ratio at that time is higher than 100%.

1 January of the year	Indexation applied	Projected indexation  (Based on the Consumer  Price Index)
2008	1,45%	1,45%
2009	-	2,53%
2010	0,4%	0,4%
2011	1,38%	1,38%
2012	2,33%	2,33%