SCPF News
News relating to the SCPF or pensions in general.
2023 Chair’s Video
We are pleased to announce that the 2023 Chair's Video is now available for you to view. In this short video, Tim Morrison (Chair of the Shell Pensions Trust) and Moon Hussain (Chair of the Risk and Operations Committee) answer questions sent in by members following the publication of the 2023 edition of the Source. We hope you enjoy it!
January 2024
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2023 News
Changes to the SCPF Founding Company
We want to update you on changes that have been made within the Shell Group corporate structure and explain how they affect the SCPF.
In Summary
Shell Petroleum N.V. (SPNV) has been replaced as a “Founding Company” by Shell Group Holdings Limited (SGH).
By way of reminder, Founding Companies hold some discretionary powers in relation to the SCPF but importantly also represent a source of ultimate financial support to the Fund.
Background
In October 2023, the Shell Group made changes to its holding company structure. The changes followed the move of Shell plc’s tax residence from the Netherlands to the UK at the end of 2021.
One of the key changes is that a new holding company, SGH has been established, sitting directly beneath Shell plc, the Group’s top company. As a result, SGH now occupies the position that in the previous structure was largely occupied by SPNV.
Why is this relevant to the SCPF?
Although these organisational changes were made for simplification reasons unrelated to the SCPF, they had implications for SPNV which has long been an important company for the SCPF and the Trustee. Therefore, the Company engaged with the Trustee and its advisers early in the process and the Company and Trustee worked together collaboratively and productively to ensure that the covenant supporting the Fund (that is, the strength of the legally binding promise to support the Fund) remains as strong after the change as it was before. Following these discussions, SPNV (now called Shell Petroleum B.V.) was replaced as a Founding Company by SGH at the same time as the changes to the corporate structure became effective, ensuring that the Trustee’s legally binding access to Group assets is maintained throughout.
As a consequence, the Founding Companies of the SCPF are now SGH and The Shell Petroleum Company Limited.
We understand that these changes might seem complex but we are pleased to report that the Trustee is satisfied that the strength of the employer covenant provided to the SCPF has been maintained following the reorganisation. The success of the process is also a demonstration of the value of the collaborative working relationship between the Shell Group and the Trustee.
December 2023
2023 Member Nominated Director results
Thank you to everyone who was interested and willing to be part of running the Fund. We are pleased with the level of interest and impressed by the calibre of the applicants.
The selection panel reviewed all the applications, and nine candidates were interviewed. Following the interviews, the panel selected Alison McNeil and Ian Chisholm as the new MNDs from 1st January 2024 for four-year terms.
Alison is a Pensioner member of the SCPF and worked for Shell in various legal roles for 23 years during which time she worked in the UK and overseas in the Hague and Dubai. Alison's last role at Shell was as Head of the Business Integrity Department. Alison is currently a Trustee Director for The Nuclear Trust and Nuclear Liabilities Fund Ltd.
Ian is a Deferred member of the SCPF and worked for Shell for over 26 years in a variety of finance roles including Vice President Financial Markets and General Manager of the Trustee Services Unit. Ian currently works for Grosvenor as Group Treasurer and is a non-executive Director at Sanctuary Housing Association.
Please join us in congratulating Alison and Ian on their appointments.November 2023
The 2023 SCPF Source
.We are pleased to announce that the 2023 edition of the Shell Contributory Pension Fund (SCPF) Newsletter the Source is now available for you to view. In this edition, we have packed in a wealth of information and updates, here's a preview of what you can expect:
- Scheme Funding Update: An update on the financial health of the SCPF.
- 2023 Climate Change Report: Learn more about the SCPF’s journey to net zero.
- Join the Member Experience Panel: We are excited to introduce a new opportunity for our members to get involved with the SCPF. Join our Member Experience Panel and have a say in shaping future communications like the Source.
- Submit Your Questions for the 2023 Chair’s Video: Do you have a burning question you'd like Tim Morrison to address? Please submit a question for the upcoming 2023 Chair’s Video.
Your feedback and engagement are important, so please don't hesitate to contact us if you have any questions, suggestions, or comments. You can contact us at SCPFtrustee@shell.com
October 2023
Pension buy-ins and buy-outs
We have received questions from a small number of members about buy-ins and buy-outs of pension schemes with insurance companies.
Whilst neither the Trustee nor the Company has any plans for an SCPF buy-in or buy-out, because of the interest in the topic we thought it would be helpful to explain a little more about them.
A pension buy-in is where the scheme buys a policy with an insurer which provides income to the pension scheme. This income is the same as the benefit payments being made to some or all members of the scheme. The insurance policy is an asset held by the scheme that is designed to mitigate some of the risks associated with paying pension scheme benefits, particularly investment and longevity risk. It is simply an asset management decision taken by the trustees of the pension scheme. The pension scheme remains fully responsible for making all benefit payments. If the assets of the scheme are insufficient to meet benefit payments, the balance of the cost falls to the sponsoring employer.
A full pension buy-out is almost always associated with the complete closure and winding up of a pension scheme. The pension scheme buys annuity policies for each member which reflect each member’s pension entitlement from the scheme. The insurance company then pays the benefits directly to members, with pension scheme members becoming policyholders of the insurance company. Once all benefits have been secured with an insurance company in full, the pension scheme can be closed and wound up. If there is a surplus in the scheme after the payment to the insurance company and all other expenses, what happens to that surplus is determined by the rules of the scheme. In the case of the SCPF, any surplus is paid to the company.
Insurance companies follow low-risk investment strategies for both buy-in and buy-out policies. Insurers that offer pension insurance are regulated by the Prudential Regulation Authority (PRA) and operate with stringent financial safeguards in place. They are subject to strict PRA standards which require them to maintain significant capital reserves to support the benefits they take on so that they have the financial capacity to meet their obligations to policyholders, even in adverse market conditions.
August 2023
Have you ever thought about becoming a Member Nominated Trustee Director?
The Shell Pension Trust has vacancies for two Member Nominated Trustee Directors to join the Trustee Board for the Shell Contributory Pension Fund (SCPF) from 1 January 2024.
As a member of the Trustee Board, you would be part of a diverse team working together to:
- ensure that the SCPF is governed in accordance with its Trust Deed and Regulations and legislation,
- make decisions on the funding strategy for the SCPF,
- monitor the investments and decide the investment strategy and policy,
- oversee and appoint all advisers to the SCPF; and
- set the member experience objectives.
You don’t need to be a pensions expert or have a background in finance, investment or employment benefits, or any other specialist knowledge. The Trustee Board is looking for enthusiastic members who have a basic understanding of pensions, are willing and able to learn more and, most importantly, are dedicated to helping ensure the success of the SCPF.
How do I apply?
Look out for the invitation to apply which will be sent to all members in September 2023.
The Trustee will choose the members for appointment as Member Nominated Trustee Directors via the selection process that was introduced in 2021. A Selection Panel (made up of an existing Member Nominated Trustee Director who is not standing for selection, the Trustee Board Chair and a Trustee Services Unit representative) will hold interviews to decide which nominees will join the Board. The Member Nomination process was updated in 2021 changing from election to selection and to a single constituency. This change was for several reasons including the growing complexity of the work involved as regulatory requirements increase, to ensure a mix of skills and diversity on the Board and the gradual decline in the number of members participating in elections (at the last election in 2019 only 17% of members voted).
Who can apply?
The Trustee Board welcomes applications from all members of the SCPF, subject to certain eligibility requirements, and is committed to diversity and equity. A diverse mix of people from different backgrounds can bring a variety of skills, perspectives, ways of thinking and experiences to the Trustee Board, helping the SCPF to operate effectively for all its members and beneficiaries. Appointing Member Nominated Trustee Directors through a selection process allows the Selection Panel to choose the most suitable candidates to complement the Board as a whole. This approach is supported by The Pensions Regulator in their guidance to governing bodies on Equality, Diversity and Inclusion.
Further information about the selection process will be made available on this website when we send the Member Nominated Trustee Director invitation to members in September; in the meantime, you can find out more about the role of the Trustee Board on the “Role of the Trustee Board” page.
July 2023
Pension Allowance Changes from 6 April 2023
On 16 March 2023, the Chancellor announced some important changes to the pension tax rules which govern the amount of pension you can build up before incurring extra tax charges. The following is a summary of the key changes based on our understanding of the current law.
These are complicated tax rules. The Trustee cannot provide financial advice and neither can any Shell group company or their employees. If you have any questions about these changes, or what they might mean for you, you should speak to a financial adviser.
Please also note that these rules are subject to change – indeed, the Labour party has already indicated that they may seek to reverse some of the changes announced by the Chancellor in March 2023.
Annual Allowance
From 6 April 2023, the Annual Allowance (AA), which is the maximum amount of pension you can build up in a registered pension scheme without triggering an extra tax charge, was increased from £40,000 to £60,000.
Since the start of the 2016/17 tax year, some high earners have had a reduced AA known as the Tapered AA. With effect from 6 April 2023, the minimum Tapered AA increased to £10,000 (previously £4,000) and the “Adjusted Income”, which is the level of earnings from which the taper applies, also increased to £260,000 (previously £240,000).
Lifetime Allowance
The Government has announced that the Lifetime Allowance (LTA), which is the maximum amount of pension you can build up in a registered pension scheme over the course of your lifetime without incurring an extra tax charge, is to be abolished entirely with effect from 6 April 2024.
Furthermore, since 6 April 2023, although the LTA still exists, any benefits “crystallised” in excess of the LTA (which is currently set at £1,073,100) will not incur an LTA charge. Instead, the excess over LTA will be taxable at the individual’s marginal rate of income tax.
Your benefits from the Fund are subject at all times to the Trust Deed and Regulations (TDR) in force from time to time and overriding law. In the event of any inconsistency between this summary and the TDR and law, the TDR and law will prevail.
May 2023
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2022 News
Watch the 2022 SCPF Video
The new Q&A video with Chair of the Shell Pensions Trust Limited, Tim Morrison, is now available to watch online.
Tim answers a variety of questions submitted by you, our members. The questions answered in the video cover:
- recent financial market events;
- the GMP equalisation project;
- the SCPF’s first Climate Change report; and
- inflation and pension increases.
December 2022
The SCPF remains fully funded
You may have recently seen articles in the press concerning a potential funding crisis for defined benefit pension schemes in the UK. This led to the Bank of England intervening in bond markets on 28 September 2022, in an effort to stabilise the market and relieve pressure on defined benefit pension schemes. We understand these reports may be a cause of concern for some pension fund members. We would like to reassure members of the SCPF that the Fund remains fully funded and maintains adequate liquidity for all of its investments.
September 2022
Additional Voluntary Contributions and your retirement options
From June 2022, the Pensions Regulator introduced new measures to help members prepare for their retirement and make better informed decisions about the options available to them.
If you have made any Additional Voluntary Contributions (AVCs) and want to start receiving your pension we must first offer to book a pension guidance appointment for you with Pension Wise a government service run by MoneyHelper. These appointments can take place over the phone or in person. If you do not want to take the free guidance, you just need to let us know and you can ‘opt out'.
June 2022
Member Self Service
During 2022 we will be rolling out registration to all members who want to use the new Member Self-Service site. You can access the site, read the registration leaflet or view the video guide on our new Member Self Service page.
May 2022
Keeping your pension safe from Scammers
Following new guidance from the Pensions Regulator to help prevent transfers to fraudulent pension schemes, we must now ensure specific checks are made before we can transfer a pension to another scheme.
We might ask you to speak with the impartial MoneyHelper service to ensure you understand more about the risks before going ahead with a transfer.
If we do not believe your new pension scheme is legitimate, we will stop the transfer to protect you from being scammed.
All these extra checks mean it could take longer to transfer your pension, so please bear with us.
January 2022
Watch the new Trustee video
Following the publication of our 2021 annual newsletter ‘The Source’, Tim Morrison met with Haydn Jones, Head of Administration and Donna Livingstone, Communications Adviser, to talk about topical matters affecting the Shell Contributory Pension Fund (SCPF).
The questions answered in the video cover:
- the Contribution Reserve Account and how it is used;
- changes to the Retail Prices Index;
- changes to pension transfer regulations and the need for members to remain safe from scammers; and
- requirements for pension scheme trustees to improve their governance with respect to the effects of climate change.
January 2022
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2021 News
Appointment of new Member Nominated Directors
SCPF members nominated in total 35 candidates for the two Member Nominated Director (MND) vacancies, providing a diverse range of strong applicants from all sections of the membership - active, deferred and pensioner. After a review of all the applications, 10 candidates were interviewed. Following the interviews, we have selected Kaego Uba-Machie and Rahat Hussain as the new MNDs from 1st January 2022 for four year terms.
Thank you to everyone who took the time to apply, to nominate someone or just to contact us for more information. An actively engaged membership is very important for the long term health of the Fund.
Our next MND selection exercise will be in Autumn 2023, when Sue Jones and Fraser Johnson approach the end of their terms of office.
November 2021
Statutory valuation: the SCPF is fully funded
Every three years we carry out a detailed actuarial valuation of the Fund. We work closely with the Scheme Actuary to carry out an in-depth analysis of future benefit payments from the Fund – the liabilities - which are then compared with the assets to check the Fund is properly financed. This tells us if we have enough money to pay the pensions that have already been promised or if the Company needs to make further contributions to the Fund. This full actuarial valuation was completed as at 31 December 2020.
You may remember from the Source last year that the funding level of the Fund as at 30 September 2020 was 94% with a shortfall of £1,040m. We are pleased to announce that the results of the full actuarial valuation showed that the funding level recovered from the lower position experienced earlier in 2020. As at 31 December 2020 the SCPF has a surplus of £479 million (103% funded). This improvement in the funding level is due to a combination of increases in the value of the Fund’s assets, changes to forecasts for inflation, interest rates and salary growth and latest indications of member behaviour and longevity.
Following the outcome of the actuarial valuation, from July 2021 the Company increased what it pays into the Contribution Reserve Account (CRA) from 10% of members’ pensionable salaries to 30% of members’ pensionable salaries. In addition, the Company will pay a further £100 million this year and £50 million, in 2022 in to the CRA. As a reminder, the CRA is a separate, ring-fenced account into which Company contributions are paid when the SCPF is well funded (member contributions continue to be paid directly into the Fund). As at 31 December 2020 the CRA had assets of £486 million, providing additional security. Money can only be released from the CRA with the Trustee’s approval and the Company has agreed an important principle that money will only be released if it would leave enough money in the CRA to cover any funding deficit. This extra money from the Company shows its commitment to provide security for your pension now and in the future.
More information on the three yearly actuarial valuation will be reported in the Source later in 2021.
August 2021
Changes to the Retail Prices Index
On 25 November 2020, the Government announced changes to how the Retail Prices Index (RPI) measure of inflation will be calculated from 2030. The UK Statistics Authority decided to make these changes because they believe that the current RPI calculation is flawed and tends to overstate inflation. Deferred pensions and pensions in payment by the SCPF are increased each year by the increase in the RPI, subject to a cap. As a result of the changes, from 2030 RPI will be calculated in line with another, newer, measure of inflation called CPIH, which is the Consumer Prices Index (CPI) plus housing costs.
The SCPF Trust Deed specifically provides for pension increases by reference to the increase in the RPI. As the RPI will remain in existence, although with significant changes to the method of calculating it, those changes will apply to the SCPF for pension increases after 2030. In the meantime SCPF pensions increases will continue to be granted by reference to RPI as it is currently calculated.
Last week, the trustees of three large UK pension schemes called for a judicial review of the government’s decision to align RPI with CPIH. The court will shortly decide whether permission is given for the claim to proceed to a full hearing. The Trustee will continue to monitor the implementation of this change and the outcome of any judicial review.
April 2021
Don’t be caught out! Your retirement is at risk from scammers.
The Trustee Services Unit has become aware of unsolicited approaches and cold-calling to members of Shell pension schemesfrom companies offering financial advice and suggesting you transfer your pension from Shell to another pension scheme, often overseas.
These companies often apply intense, high pressured sales techniques to convince you to invest and will quote inaccurate and misleading information about your benefits from the Shell pension and actions the Trustee or Company have taken (when they have not) or they claim to offer ‘guaranteed returns’ from their own investments.
These companies are becoming increasingly sophisticated with credible websites and supporting materials. Some companies have said that they have been engaged by the Trustee to provide financial advice to members. This is not true – the Trustee and the Company will never give your details to other organisations without your permission. These companies use LinkedIn and similar sites to gather contact information.
Don’t be caught out! Thoroughly check out the firm or person that you are dealing with to ensure that they are reputable and ensure that any provider or scheme you are considering is genuine. To help you avoid pension scams and check if a firm is genuine visit the FCAs website Scam smart.
January 2021
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2020 News
The 2020 Source
The 2020 edition of the SCPF Source, the newsletter from Shell Pension Trust Limited, is now available to view here.
This edition features details of the SCPF funding, how the SCPF’s investments have performed, The impact of COVID-19 and news of Pension savings tax changes.
November 2020
Additional Voluntary Contributions (AVCs) With-Profits funds
Early in 2018 Legal & General announced the sale of its mature savings business (including the With-Profits arrangement) to the ReAssure division of Swiss Re Limited. The transfer was originally scheduled for 4 November 2019, but the High Court approval was subsequently deferred. We can now announce that the transfer to ReAssure took place on 7 September 2020, and all affected members will be contacted shortly.
September 2020
Message from the Trustee on COVID-19
In these unsettling times, as we all change the way we go about our lives in order to control the spread of COVID-19, we would like to reassure you that the Pensions Administration Team is maintaining normal service while following Shell and Government advice for keeping our staff safe, including working from home as far as possible. Pension payments will be made as normal on the first working day of each month.
Some of you may need to contact us in relation to your Shell pension (for example, an address change) and you can continue to do so in the usual way: email to UK-PensionsAdmin@shell.com or call on +44 (0)20 7934 1190 (if you cannot get through straight away, please leave a message and we will call you back within 48 hours).
Due to possible delays with the post, if you have to mail anything to us you may experience a delay in our response to you. Where possible, we would encourage you to email the Pensions Administration Team rather than using mail. We will accept scanned versions of documents or photographs of documents over email. To help, please add your pension number to the email.
As a guide, the turnaround for most cases is approximately 10-15 working days.
Whilst we continue to operate as normal at the current time, we will update this note should anything change.
March 2020
The new 2020 video
In the 2019 Source we asked members to send in any questions they might have about the SCPF. In this short video Tim Morrison is joined by Mary Corrie and Haydn Jones to answer questions from members on a range of subjects including funding of the SCPF and pension scams.
January 2020
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2019 News
Member Nominated Trustee Directors Election Results
The results of the recent election results for Member Nominated Trustee Directors of Shell Pensions Trust Limited are as follows:
Active Member Constituency
Elected: Fraser Johnson
Pensioner/Deferred Member Constituency
Elected: Sue Jones
Congratulations to Fraser and to Sue who will serve four year terms beginning 1 January 2020. Thank you to everyone who took the time to vote.
November 2019
Additional Voluntary Contributions (AVCs) With-Profits funds
Early last year Legal & General announced the sale of its mature savings business (including the With-Profits arrangement) to the ReAssure division of Swiss Re Limited. The transfer was originally scheduled for 4 November 2019, but the High Court approval has now been deferred. We don’t know the new dates for the transfer or High Court hearing yet, but we’ll contact all members with With-Profits AVCs as soon as we do.
November 2019
It’s time for you to vote
Look out for your 2019 Member Nominated Director election ballot details. If you’re an active member or you have registered your email address you’ll receive all the information you need to vote in an email from Electoral Reform Services, otherwise you’ll receive a ballot paper in the post. Voting will take place between 11 October and 8 November 2019.
October 2019
2019 MND Elections
Two of our Member Nominated Directors (MND) are approaching the end of their term of office so we are holding an election in October 2019 to select new MNDs. These positions are open to all eligible members so if you think you would make a good trustee director, have the time and would like to help us run the SCPF we would like to hear from you.
This is an important and responsible role and a fascinating way to get involved with the issues which affect you and your fellow members. You can find out about the importance of this role and of voting in the election in this short video.
July 2019
A discussion with the SCPF Trustee Board
In the 2018 Source we asked members to send in any questions they might have about the SCPF. In this short video the Trustee Board answer questions from members on a range of subjects including the investment strategy, the valuation and indexation.
January 2019
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2018 News
The 2018 Source
We are pleased to announce the new-look 2018 SCPF Source is ready to view, which, along with the usual information on investments and the Trustee Board, also includes the results of the 2017 actuarial valuation.
November 2018
An interview with Tim Morrison
It's been four months since Tim Morrison took over as Chairman of Shell Pensions Trust (the Trustee for the SCFP). In this short video, Tim talks about what has been keeping the Board busy and the areas they will be concentrating on in the coming years. Also look out for this year’s edition of the Source due out in November, which includes the results of the recent Actuarial Valuation.
November 2018
GMP Court Ruling
You may have recently seen in the News the decision by the High Court that pension schemes should equalise benefits between women and men who have guaranteed minimum pensions (GMPs). This is a complex area and the Shell Pensions Trust are currently talking to their advisers to establish who this may affect and on the best course of action to implement any changes.
October 2018
Message from Clive Mather
After 10 years as Chairman of the Shell Pensions Trust, the time has come to hand over. I can think of no better person than Tim Morrison as my successor. The SCPF has always been one of the top schemes in the UK and I know it will be in safe hands.
I would like to thank all of my fellow Directors and the Trustee Services Unit team for their support over the last decade. Together we haveweathered many challenges; market crashes, quantitative easing, ever increasing regulatory pressures and latterly all the uncertainty following the Brexit referendum.
Throughout all these testing times the commitment of the Company to the Fund has never wavered and that is fundamental to the long term health of the SCPF. With a diversified portfolio of quality investments and a strong sponsor, the Fund is well placed to cope with whatever new problems the future holds, and as importantly to seize new opportunities.
It has been a privilege to Chair the SCPF and I do wish Tim every success as he now takes the helm.
June 2018
New Privacy Notice
As the General Data Protection Regulation takes effect on the 25th May, we have made some important changes and improvements to our Privacy Policy. Please have a look at our updated Privacy Notice to see how we handle your data and how we protect it.
May 2018
The Green Finance Inquiry
The Environmental Audit Committee has written to the top 25 pension funds in the UK, to ask how they are considering environmental risks such as climate change. The letter contains nine questions on pension fund investment and climate change-related risks. You can read a copy of the letter from the Environmental Audit Committee to the SCPF and read our response here.
April 2018
SCPF Funding
You may have seen recent articles in UK newspapers reporting on the size of some British companies’ pension deficits including Royal Dutch Shell.
The figures the press quote are often taken from the published accounts for Royal Dutch Shell plc, these are sometimes misconstrued and may incorrectly use group data when referring to the UK Pension fund. The Royal Dutch Shell plc accounts quote the total accounting liability for all of Shell’s pension arrangements around the world. The majority of Shell’s pension schemes, including the SCPF, have assets supporting these liabilities. In addition, there are however some Shell pension arrangements that are unfunded as permitted under local legislation, so will show a shortfall for reporting purposes.
It is always important to remember that the SCPF’s assets are ring-fenced and are therefore separate from Shell’s other pension schemes as well as the Company. You can read about the details of SCPF's funding position in our annual newsletter the Source
February 2018
GDPR
The General Data Protection Regulation, better known as “GDPR” is a new EU regulation which comes into force in May 2018. The new regulation has been designed to update the existing Data Protection rules and give people more control over how their personal information is collected, stored, shared and used. We will be contacting all members before May to explain how we use and protect your data.
January 2018
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2017 News
Member Nominated Director (MND) Elections Results 2017
The results of the SCPF Member Nominated Director (MND) Election are now in. Electoral Reform Services issued 35,970 ballot papers and 7,633 votes were cast by Single Transferable Vote.
There were two vacancies this year and the two candidates who received the most number of votes were:
- Graham Bryant, and
- Mary Corrie
Both have been duly elected to serve as a MND with effect from 1 January 2018, for a 4-year term. Congratulations to them both!
Full details of how the votes were cast can be found in this voting explainer.
November 2017
Trustee Director News
It is with deep sadness that we inform you of the death of Moira Shannon, Trustee Director of Shell Pensions Trust, after a serious illness. Moira worked for Shell Legal in London for over 20 years and was a valued member of the Board and Investment Committee. She was highly respected by her colleagues and a good friend to all the trustees. We extend our heartfelt condolences to her husband, and two sons.
Clive Mather, on behalf of the Board.
October 2017
Don’t forget to vote
Look out for your 2017 MND election ballot package, for Deferred and Pensioner members, which will arrive either by email or by post from Electoral Reform Services. Voting will take place between 9 October and 10 November 2017. The easiest way to cast your vote is online, using the security codes quoted on your ballot paper or email.
October 2017
2017 Source
The 2017 edition of the SCPF Source, the newsletter from Shell Pension Trust Limited, is now available. To view it please click here.
This edition features a member survey - please take a moment to complete the survey on page 3! Your responses will help us to provide you with information and services that you find most useful.
September 2017
Funding of the SCPF
There are often articles in the press that talk about Shell having a large pension deficit. The figures frequently referred to, are taken from the Royal Dutch Shell plc accounts, and refer to the total accounting liability for all of Shell’s schemes across the globe. This includes schemes in other countries that are deliberately unfunded as permitted under local legislation, so will show a shortfall for accounting purposes.
The SCPF is currently well funded, and its assets are ring-fenced from Shell’s other schemes, including the unfunded schemes mentioned above. You can read more about the SCPF's funding in the upcoming Source.
September 2017
Pension Scams
The Trustee Services Unit has become aware of unsolicited approaches and cold-calling to SCPF members from companies offering financial advice and suggesting you transfer your pension from Shell to another pension scheme, often overseas.
These companies often quote inaccurate and misleading information about your benefits from the SCPF and actions the Trustee or Company have taken (when they have not) or they claim to offer ‘guaranteed returns’ from their own investments.
Don’t be caught out! Read The Pensions Regulator’s five tips for protecting yourself from scammers, by clicking on this link website.
August 2017
2017 MND Elections
The SCPF are looking for two pensioner members to join the Board of the Trustee Company. If you’re interested in becoming a Member Nominated Director (MND) read the “Introduction to Trusteeship” and the “Election Rules” before the nomination deadline of 31 August 2017.
July 2017
Pensioner Liaison Representatives
We can now advise that the consultation with the Pensioner Liaison Representatives (PLR) has now been concluded and the decision to close the PLR network in June has been reconfirmed.
Discussions with the Shell Pensioners Benevolent Association (SPBA) about the future of benevolence beyond the lifetime of the PLR network are continuing and a potential new model is under investigation. Pensioners will be advised of the details of the new scheme as soon as we are able to do so.
March 2017
Taxation Of Overseas Pension Schemes
In December 2016, the UK Government published draft legislation affecting how benefits paid from overseas pension schemes, such as the Shell Overseas Contributory Pension Fund (SOCPF), will be taxed from 6th April 2017. If you are a SCPF member who also has benefits in the SOCPF you can read further information on the SOCPF News page. If you haven’t already done so, you can register to receive updates by e-mail at www.sp.pensioncomms.info.
January 2017
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2016 News
Pensioner Liaison Representatives
Pensioner members will have received a letter from the company outlining proposals that the network of Pensioner Liaison Representatives (PLRs) will cease in 2017. This is a significant change and the Trustee of the SCPF was consulted before the company reached this decision. The staff affected are now being consulted.
The Trustee would like to thank the PLRs, past and present, for the contribution and help, which they have provided to pensioners over the years. It recognises the necessity for the company to move to a more consistent and cost-effective approach to supporting the pensioner population. The Trustee welcomes the reaffirmation of the company’s support for the Shell Pensioners Association (SPA) and the Shell Pensioners Benevolent Association (SPBA).
December 2016
2016 Source
The 2016 edition of the SCPF Source will be issued to all members this month (September). This year we are including a letter requesting your email address so that we can start to communicate electronically with those who are happy to move away from paper. It’s easy to register:
- Visit the website at sp.pensioncomms.info
- Enter your surname as printed on the letter and insert the unique PIN
- Finally enter your personal email address
Once you’ve registered you’ll receive emails letting you know when the Source and other non-personalised communications are available to view online, giving you instant access to important information and resources. We very much hope you will take this opportunity to help us to help you.
September 2016
Recording of the Shell Pensions Trust webcast to active members of the SCPF
The Trustee of the Shell Contributory Pension Fund held a live webcast with active members of the Fund on 26 January 2016. This was well attended, with 536 active members dialling in.
You can watch this webcast, which can be found on Shell Pension Trust Webcast.
Many questions were asked during the webcast, some of which were addressed live during the session, but time did not allow for all to be answered. However all the questions asked, together with answers, can be found on webcast questions and answers.
The first question asked during the webcast will be of particular interest to all members, and built on articles that many have seen from time to time in the press which comment in passing on the funding position of the Shell pension schemes.
By way of reply it was noted that, when referring to Shell, the data used by the press is typically that which is publicly available in the accounts of Royal Dutch Shell plc, which reports the aggregate accounting position of all of Shell’s pension schemes and its other post-retirement benefit obligations across the globe.
Each individual pension scheme sponsored by the Royal Dutch Shell group of companies is independent of the others, with its own individual funding position. This includes the Shell Contributory Pension Fund which was established as a Trust from the outset, with its own independent legal entity.
The Trustee is pleased to advise that as at the end of 2015 the funding position of the Shell Contributory Pension Fund was 105%, as compared with 104% at the end of 2014, the date of its last full actuarial valuation. This fully funded position has been maintained despite challenging market conditions, partially as a result of the Trustee decision to further de-risk the portfolio during 2015.
You can hear more on this, and the answer to many other questions, in the webcast.
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2015 News
Member Nominated Trustee Directors Election Results
The results of the recent election results for Member Nominated Trustee Directors of Shell Pensions Trust Limited are as follows:
Active Member Constituency - Elected: Fraser Johnson
Pensioner/Deferred Member Constituency - Elected: Sue Jones
All new directors will serve four year terms beginning 1 January 2016. The Board welcomes the new directors and thanks all members for participating in the election process.
November 2015
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2014 News
BP Class Action
You may have seen press coverage over the weekend (5 July 2014) that the Trustee is part of a legal action against BP. A number of BP shareholders from around the world, including Shell Pensions Trust, are suing in Texas for losses incurred on the shares bought before the 2010 Deepwater Horizon disaster.
The Trustee’s decision to join these particular proceedings was taken last year after consultation with its legal and investment advisors. It is a fiduciary decision, as pension fund trustees are required by law to act in the best interest of their participants and beneficiaries. By participating in such a claim, pension funds may recover all or part of their related investment losses from the proceeds of a potential court award or settlement and if they did not, they would indirectly suffer from any pay outs to other investors who would be successful in their claims.
The Trustee regularly participates in different claims or class actions related to its investments.
July 2014
Same sex marriages
Since 13 March 2014, the Marriage (Same Sex Couples) Act 2013 has allowed same sex spouses to have the same benefits as opposite sex spouses but only for benefits based on a Member’s pensionable service from 5 December 2005, the effective date of the Civil Partnership Act 2004.
To ensure that dependants’ benefits are not limited to the legislative minimum, the Trustee Board agreed to amend the Trust Deed and Regulations and has passed a resolution allowing any ‘qualifying spouse’ to be entitled to a dependant’s pension based on all of a Member’s pensionable service. This means we treat those in a same sex marriage exactly the same as anyone in a civil partnership or married to a spouse of the opposite sex.
May 2014
Contribution Reserve Account (CRA)
We have written to every member to advise you of a change to the way in which the Company funds the SCPF. This is for information only as there is no impact on your pension benefits as a result of this change. If, however, you do have any questions then please send them to the following email address SI-Pension-HRUK-CRA@shell.com. A copy of the letter can be downloaded below and some more background information in the form of frequently asked questions and answers.
April 2014
Budget 2014
The Budget included big changes for UK pensions and it is natural for members to wonder how they will be affected. The major announcements currently only affect members of defined contribution (DC) pension schemes. The SCPF is a defined benefit (DB) scheme and in the short term there will be no impact for the majority of members.
The Government has started a consultation exercise on how, or whether, any of the changes should apply to private sector DB schemes or to the AVC arrangements held within such schemes. It will be many months before anything concrete is known.
Member-Nominated Director Elections for the SCPF – Results
Active Member Constituency:
Moira Shannon has been elected for a term of four years from 1 January 2014
Nathaniel Mead has been elected for a term of two years from 1 January 2014
Pensioner Member Constituency
Mary Corrie has been elected for a term of four years from 1 January 2014
Pensioner Liaison Representative Constituency
As previously announced, David Fortune has been elected unopposed for a term of four years from 1 January 2014.
Thanks to everyone who stood.
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2013 News
Additional Voluntary Contributions
As announced in the 2012 edition of ‘the source’, the Trustee has added two new investment funds to the current range of unit linked funds, bringing the number of funds in which members can choose to invest to twelve.
More details of the funds are given in the AVC Newsletter being sent to SCPF active members’ home addresses with their annual SCPF benefit statement as well as the updated ‘Understanding your AVC Investment Choices’ booklet - AVC Investment Guide July 2013.
Pension Liberation
The Pensions Regulator (TPR) recently launched a campaign warning individuals of the potential risks of transferring their pensions in certain circumstances and have produced a leaflet giving information about this.
The leaflet is available to download from the ‘SCPF Factsheets’ and ‘SOCPF Factsheets’ section on this website, or for more detailed information, a factsheet can be downloaded direct from TPR’s website via the following link: http://www.pensionsadvisoryservice.org.uk/media/826600/members_leaflet.pdf
RPI Consultation – No Change
The UK Statistics Authority (ONS) have announced that, following its consultation, there will be no change to the calculation of the Retail Prices Index (RPI). This was a surprise - the markets had already factored in some expected changes. The ONS have recommended that any future changes to RPI should be limited to issues such as the annual update of the weighted ‘basket’ and improvements to data (for example, they have also recommended some improvements to the data on housing costs).
There will be a new index published, RPIJ, which uses basically the same data as the RPI but has a different formula which is more in line with the way CPI is calculated. It is currently unclear what practical purpose the new index will have, other than to aid analysis of the impact that the formula effect has on RPI.
In summary, the current formula will continue to be used for all RPI-linked pension increases, so there is no change in the way SCPF pensions are calculated.
January 2013
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2012 News
Tax Reforms - Scheme Pays Option
A factsheet has been produced to advise active SCPF members about the ‘Scheme Pays’ option available in some circumstances if they believe that they are subject to an Annual Allowance tax charge. The factsheet must be read in conjunction with the Annual Allowance factsheets and both are available from the ‘SCPF Factsheets’ section.
Strategic Asset Allocation Review
As you may have read in the Source, the Trustee undertook a detailed review of the SCPF's investment portfolio following the trienniel valuation. As the position of the fund has not changed dramatically in the last few years, there is no dramatic change in the asset allocation.
The main change has been to increase diversification by adding new categories of sovereign and corporate debt to the permitted asset classes which we believe should not reduce the chance of good performance but reduces downside risk. There has also been press coverage during the year about the Government's desire for pension funds to invest more in UK infrastructure.
The new Strategic Asset Allocation has added Infrastructure as a permitted investment, but we will only invest when our advisors can recommend assets which we believe are suitable for the Fund. The Trustee Board approved a revised Statement of Investment Principles in September.
October 2012
Proposed Changes to RPI
You may have read in the papers that the Office for National Statistics (ONS) has announced a consultation on changes to the calculation of the retail prices index (RPI) rate of inflation which could lead to RPI moving more slowly and in step with the consumer prices index (CPI). When there is no price information for some parts of the index, an average is calculated. The way this is done is different for RPI compared to the CPI. Historically, this difference - know as the 'formula effect' - has led to the RPI increasing faster than CPI.
The outcome of this consultation could vary from "no change" to a complete elimination of the formula effect. The consultation closes on 30 November 2012 and any recommendations arising from it will be published in January 2013. Any changes would impact the returns paid by index-linked gilts, which means that the Bank of England must also be consulted, and changes might need to be agreed by the Chancellor.
Depending on the extent of any changes, there might be significant consequences for the Fund and for members. We will continue to monitor developments in this area and we will update the website if and when the Government takes any concrete decisions.
October 2012
Pension Increases - RPI/CPI (Updated)
You may have heard or read about the Government's plans to look at whether pensions should be increased by the Consumer Prices Index (CPI) or the Retail Prices Index (RPI). The Government's consultation process is due to end in March 2011. We await the conclusion of the consultation but at this stage we are not anticipating that we will need to amend the rules in the Trust Deed and Regulations which give RPI as the basis for the annual review of pensions.
We can confirm that we are not required by the Government to amend the Trust Deed and Regulations and that RPI can continue to be used as the basis for the annual review of pensions.
March 2011 (updated February 2012)
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2011 News
2011 UK Retirement Benefits Review
The Company announced today that it is proposing to develop a UK defined contribution pension plan for new hires to Shell to reflect market trends in the UK. Timing is proposed to be Quarter 1 2013. The plan will be designed to ensure that the reward package in the UK for new hires remains strongly competitive.
Current active members, deferred members and pensioners of the Shell Contributory Pension Fund (SCPF) and the Shell Overseas Contributory Pension Fund (SOCPF) are not impacted by this proposal. Active members of the SCPF and SOCPF will continue to accrue pension benefits within those plans on the same basis as now. The Company has confirmed that its commitment to funding the SCPF and SOCPF remains unchanged. Further details of the proposed pension plan for new hires will be made available as the design is progressed.
9 December 2011
Shell Pensions Trust Limited: Member Nominated Trustee Directors Election Results
The results of the recent election results for Member Nominated Trustee Directors of Shell Pensions Trust Limited are as follows:
Active Member Constituency
Elected: Sian Bowen, Fiona Mayhew
First Reserve: Victor Piotrowicz
Pensioner/Deferred Member Constituency
Elected: Bob Craig
First Reserve: Sue Jones
All new directors will serve four year terms beginning 1 January 2012. The Board welcomes the new directors and thanks all members for participating in the election process.
14 November 2011
SCPF Benefit Statements
The Shell Contributory Pension Fund (SCPF) Benefit Statements are usually made available for all active members of the SCPF in late June each year. We decided to delay the statements this year as we had introduced a new and upgraded pensions administration system (Compendia). We advised active members, in late June, that we expected to be able to make the statements available during October 2011.
Unfortunately, there is a further delay while final checks are being made, for which we apologise. Your SCPF Benefit Statement will be sent to your home address during the week beginning 7 November 2011 so you should receive your Benefit Statement by 11 November 2011.
Please note that if you also have benefits in the SOCPF, you will receive two separate statements covering your benefits in each fund.
Please check your statement carefully. If you have any queries regarding your statement, please contact the Pensions Advisory Unit at pensions-advisory-unit@shell.com
November 2011
Recent Market Volatility
Members and pensioners of the Shell Contributory Pension Fund (SCPF) will receive in September a copy of "The Source". This will provide an account of the stewardship of the Fund for which the Trustee, Shell Pensions Trust, is responsible. The Source, produced in newspaper form, is intended primarily to cover the calendar year 2010 in an accessible way, following the publication of the Trustee Report and Accounts. Given the time to print and distribute it, however, please continue to use this website for current information on events.
Recently global financial markets have entered another period of heightened volatility. This has been caused by concerns over government debt levels, particularly in the Euro zone and the USA, and questions over the path of future economic growth.
The Trustee, together with its investment manager, Shell Asset Management Company and its independent investment adviser, Aon Hewitt, is monitoring events closely and is ready to take action if appropriate. It is important to remember that the SCPF is a long-term investor with liabilities going out many years into the future. Investment decisions are made in this context. The paramount aim is to ensure that the Fund's investments produce the cash flows necessary to meet its future pension obligations over the decades to come. This remains the key objective of the Trustee.
The SCPF remains well funded, professionally managed and advised, with the backing of a strong sponsor company.
15th August 2011
New Pensions Administration and Payroll System - Important Information
On 31 May 2011, the Trustee Services Unit implemented a new Pensions Administration and Payroll system, called Compendia. This will enable us to improve our service to members.
Pensioners should note that there are some minor but important changes which affect them - the article below explains the new pension numbers and the new pension payment advice slip layout.
Important Information for Pensioners
Active members should note that Benefit Statements are usually available for all active members of the Fund in late June each year. Earlier in the year the Trustee Services Unit made a decision to produce the Benefit Statements for the year to 31 March 2011 using Compendia rather than the previous pensions administration system. Having implemented Compendia on 31 May 2011 we now need a period of stability before we prepare the Benefit Statements. It is likely that Benefit Statements will be available at the earliest during October 2011. We apologise for this delay and any inconvenience caused.
We will update you on the expected timing of availability of Benefit Statements later in the year. In the meantime, should you require an update of the information for a specific purpose e.g. you are approaching your Normal Pension Date or are thinking about early retirement, you may request this information from the Pensions Advisory Unit.
All members should note that the Trustee Services Unit has not been in a position to respond to queries from members as quickly as usual during the period when we switched over from our previous administration system to Compendia. We aim to return to our normal response times as soon as possible. Thank you for your patience in the meantime.
June 2011
Pension Increases - RPI History
In February 2011 the Bank of England made a comment that one component of inflation (clothing) may have been understated by the Office for National Statistics (ONS) in their inflation calculations.
The ONS has stated that it regularly updates its methodology and that there has been no change to the published inflation index (RPI). The latter is what is referenced in the Trust Deeds to calculate pension increases for the Shell Contributory Pension Fund and the Shell Overseas Contributory Pension Fund. As there are no changes to the published RPI, pensions will continue to be uplifted by the published RPI and no changes will be made to historic increases for both funds.
March 2011
Commutation Factor Review November 2010
When you first take your pension you can exchange some of your pension for a pension commencement lump sum. Commutation factors are used to calculate how much pension you would give up.
The Founding Companies review and set the commutation factors in the SCPF and the SOCPF, after consultation with the Actuary.
The most recent review and consultation took place in November 2010 and as a result the commutation factors were increased from 1 January 2011. The Trustees of the SCPF and SOCPF approved the necessary amendment to the Trust Deed and Regulations at their Trustee meetings in November and December 2010.
As commutation factors are subject to review, you will receive an estimate of the maximum pension commencement lump sum available to you when you take your pension.
If you would like further information about the change in commutation factors please go to HR Online/My Benefits/My Pension or contact the Pensions Advisory Unit FTT/21 email: pensions-advisory-unit@shell.com if you are an active member. If you are a deferred member, please email: pensions-administration-london-l@shell.com.
March 2011
Tax Changes
The Government has announced the following tax changes:
- From 6 April 2011, the Annual Allowance, which limits the amount of pension savings you can make in a year, will reduce from £255,000 to £50,000.
- This new Annual Allowance will replace the previous Government’s plans for restricting tax relief on pension savings for high earners. However, the anti-forestalling legislation, which prevents increases in contributions and benefits before April 2011, remains in place.
- From 6 April 2012, the Lifetime Allowance, which limits the amount of pension savings you can make in your lifetime, will reduce from £1.8 million to £1.5 million.
- If you think you may be affected by these changes, you should speak to an Independent Financial Adviser (IFA)
Active members can find further information about tax changes, on HR Online/My Benefits/My Pension.
March 2011
More in Shell Contributory Pension Fund
I work at Shell
This section of the website contains information for active members of the SCPF.
I have left Shell
This section gives pension information for ex-employees of Shell, not yet in receipt of their pension.