During this stage, they are provided with various tools to increase their employability both
at the bank and elsewhere. Employees who are made redundant are entitled to a 10-month
support period. Under the 'vacancy management' rules, redundant employees are to be
prioritised whenever internal vacancies come up. Employees forced to leave the company
due to the reorganisation are entitled to fixed financial compensation.
The fourth significant amendment to the Collective Labour Agreement is the change in the
pension scheme. The pension provisions for employees of the local Rabobanks, Rabobank
Nederland, De Lage Landen, Obvion and Rabo Real Estate Group have been transferred to the
Rabobank Pension Lund. There were several reasons for the pension scheme amendment.
Under the old scheme, there was a risk that the IERS accounting rules would result in potentially
major fluctuations in the bank's assets. Regulations relating to the reduction in the maximum
accrual percentage and the increase in the guideline pensionable age necessitated an
adjustment of the pension scheme. Finally, pension premiums have increased sharply in recent
years, due to higher life expectancy, low interest rates and other factors.The bank consulted
closely on the amendment of the scheme with the trade unions, the employee representation
bodies, the Pension Fund Members'Council and the Rabobank Retirees Association. Under the
new pension scheme, Rabobank has no obligations other than to pay a capped annual
premium. The indexation of employees' pensions is no longer unconditional and linked to the
collective wage increase, but rather, as with retired employees, conditional and linked to the
pension fund's coverage ratio. However, this is offset by measures including a one-time payment
by Rabobank to the pension fund, which is expected to be used to finance indexation over the
next three years. Other changes include a reduction in the contribution-exempt amount and in
employees' personal contribution to pension premiums.
The coverage ratio of the Rabobank Pension Fund at year-end 2013 was 124.6%. For a required
coverage ratio of 116.5%, this means that the fund had a reserve surplus of 8.1 percentage
points. The coverage ratio is calculated using the yield curve set by the Dutch Central Bank.
The pension fund uses the market interest rate for various purposes, including in its decisions
regarding the allocation of indexation. Based on this, the coverage ratio at year-end 2013 was
120.8%; the coverage ratio at year-end 2012, which was calculated using the same method,
was 115.8%.
Rabobank International
Rabobank International also introduced various austerity measures in 2013.The above-mentioned
measures for senior management and the Collective Labour Agreement continue to apply in
full to Rabobank International's Dutch employees.
In addition, the total available budget for variable remuneration at Rabobank International
for 2013 was reduced once again, in line with the downward trend witnessed in recent years.
An additional priority for the Dutch business was reducing the number of employees receiving
discretionary variable remuneration in excess of 20% oftheirfixed salary. In anticipation of
European legislation for 2014, the maximum for the variable remuneration for 2013 is already
set at 100% of the fixed salary for all employees of Rabobank International.
Subsidiaries
De Lage Landen incorporated a number of changes in its Collective Labour Agreement in 2013
that likewise involve a retrenchment. New measures implemented include the discontinuation
of general salary increases for 2013; the replacement of the age-related leave entitlement with
leave entitlement related to the number of years of service; and a freezing of the Older Employees
Scheme (which entitles these employees to additional leave from a certain age). The personal
budget for all employees was raised by 0.65% effective 1 January 2014.
Employees
