Posts Tagged ‘Shell Pension Fund’

Hi John,

This short video may be of interest, specifically to Shell Employees.

http://www.aesadviser.com/services/qrops/

I have personally spoken with guys who have already started to take their Shell pension, and they have been most dismayed to learn about what they could have had, in the way of a cash equivalent transfer (into their own retirement trust) and the massive improvement that such a move heralds in relation to passing their fund to their wife and kids, in addition to the possibility for higher growth between now and retirement and higher levels of income at retirement, than if they were to stay in the Shell scheme. read more

The news… was quietly posted on the Shell pensioners’ website just before Christmas… read more

It has come to our attention that former Shell executive Paddy Briggs (above) has been elected to serve the thirty-three thousand Shell pensioners in the UK as a Trustee of the Shell Contributory Pension Fund for four years commencing January 2010. In addition to the elected members, the Board of Trustees has seven Shell appointees, including UK country chairman James Smith and Clive Mather, the Chairman of the Board.

The manifesto on which Paddy Briggs was elected was:

“I joined Shell Mex and B.P. in 1964 and retired from Shell in 2002 having worked in Shell UK Ltd, Shell International and operating companies in The Netherlands, Hong Kong and Dubai. The Shell that most of us once worked for is long gone – as the “reserves” scandal and the recent furore over top executive remuneration have shown. Such events, coupled with the deteriorating financial position of many pensioners (which was exacerbated this year by a derisory 0.9% annual pension increase) illustrate the extent of the changes in Shell and confirm the urgent need for a strong defence of SCPF member interests by the one elected MNT Trustee directors. I was “First reserve” in the elections in 2007 and hope to go one better this time around. If elected I will do my upmost robustly to represent the interests of the Pensioner constituency and all other beneficiaries of the fund.” read more

Global Pensions

by Raquel Pichardo-Allison 30 April 2009

NETHERLANDS– Royal Dutch Shell plans to inject US$5bn into its pension fund in 2009, chief financial officer Peter Voser told analysts yesterday.

In a presentation about the firm’s first quarter returns, Voser said the increased contribution amount, up from $1.6bn in 2008, is driven by regulatory and other legal requirements.

Voser said: “The sharp decline in the world markets at the end of 2008 has left pension deficits for many companies, and Shell is not immune from that.”  read more

Shell's contribution to the fund has risen from 5% to 23.6% and the employee contribution has risen from 2% to 8% of salaries, the company said in an update posted on its Web site Saturday. The increased payments should bring the pension's funding ratio to 105% within three years and 127% by 2023, the company said.

Printed below is a draft article. It contains my interpretation of the information contained in email correspondence supplied to me by Shell SA retiree, Mr Ken Purchase. No doubt you will advise if any of the emails are not authentic. If I do not hear from you by close of business on Friday 27 March, I will take it that there is no dispute or challenge over authenticity, stated facts, nor my interpretations or conclusions, and will state as such.

Selection of links to news articles about Shell Pension Fund Problems which are undermining confidence in the proper administration of the funds.

Second, Shell is to spend an extra $5bn-$6bn on plugging its pension deficit. But Shell is nowhere near insolvent and its pension fund has decades to play with. The deficit figure may be interesting information for investors. Why it should require the diversion of much-needed cash flow right now is a different question.

In December, Shell's Dutch pension fund told members it had fallen into deficit after share market turmoil knocked 40 percent off its value

March 18 (Bloomberg) -- Royal Dutch Shell Plc reported an $8.3 billion pension plan deficit for 2008 and expects to make “significant” cash contributions to pensions in addition to the regular annual contribution of between $1 billion and $2 billion.

Shell, heavily invested in equities, saw its investment portfolio decline by 40 per cent in 2008.

Royal Dutch Shell's (RDSa.L) pension fund also slipped into deficit after its value fell 40 percent, pushing its solvency ratio to 85 percent.

The shock waves have however been such that Clive Mather, Chairman of the trustees of the Shell Contributory Pension Fund, has felt it necessary to send a message of reassurance to Shell UK pensioners. Dutch Shell pensioners will no doubt find it informative to contrast their uncertain situation with that of their UK counterparts.

Samco, the asset management company of the Shell pension funds, said last week it had a total of $45m (€32.2m) through indirect investments on behalf of the Dutch Shell Pension Fund...

On 12 December news surfaced that the Dutch pension fund of Royal Dutch Shell is heavily in deficit, with a 40% plunge in value as a result of share market turmoil. A $45 million exposure to the "Madoff" fraud was revealed a few days later following speculation surrounding the stability of the fund.

The Dutch pension fund of Royal Dutch Shell said it has a $45m exposure to the alleged $50bn fraud by prominent Wall Street trader Bernard Madoff.

DAILY EXPRESS

Thursday December 18,2008

OIL giant Royal Dutch Shell has emerged as one of the latest victims of the $50?billion (£33?billion) fraud by Wall Street trader Bernard Madoff.

The company said its Dutch pension fund had a $45?million exposure to the fraud but that the impact would “not be material” even if it had to write off the full amount.

It joins a growing list of organisations globally that will lose money as a result of the fraud, with the total figure now above $24?billion.

Shell’s announcement came after the chairman of the U.S. watchdog, the Securities & Exchange Commission, admitted it had not followed up a string of tip-offs about Madoff’s activities. read more

Fresh details of the human cost of the apparent Ponzi scheme, in which capital from new investors was used to pay interest to existing investors, also began to emerge yesterday. The pension fund operated by the Netherlands branch of Royal Dutch Shell said that it had a $45 million exposure to the alleged fraud. The fund, which manages the retirement savings of thousands of Shell workers, is in deficit.

There are plenty of corporate victims in the alleged fraud, including HSBC Holdings (HBC), Banco Santander (STD), BNP Paribas (BNPP.PA), Royal Bank of Scotland Group (RBS), and the Dutch pension fund of Royal Dutch Shell (RDSA).

Pensioners from oil giant Shell have emerged as the latest victims of disgraced financier Bernard Madoff.

Other companies to have been hit include oil major Royal Dutch Shell PLC, which said last week that its Dutch pension fund had slumped from a 180% funding position to just 85% in the past eleven months. The Dutch fund had assets of €19.2 billion ($27.13 billion) at the end of December last year, but said in a statement on Friday that this figure has tumbled 40% since then to about €11.6 billion.

FT: Royal Dutch Shell, the energy group, revealed that its pension fund was exposed to Mr Madoff.

In Europe, the Dutch pension fund of Royal Dutch Shell said it had a $45 million exposure.

The pension fund operated by the Netherlands branch of Royal Dutch Shell said that it had a $45 million exposure to the alleged fraud. The fund, which manages the retirement savings of thousands of Shell workers, is in deficit.

Adding to the sense of financial mayhem was more fallout from the alleged $50 billion (32 billion pounds) fraud by U.S. financier Bernard Madoff. As he was put under house arrest, another European bank, BNP Paribas, posted losses connected to the scandal, sending European stocks lower. The Dutch pension fund of Royal Dutch Shell Plc said it had $45 million exposure...

Shell, the Dutch oil giant, has emerged as the latest victim of the $50 billion (£32.23 million) fraud allegedly perpetrated by Wall Street trader Bernard Madoff, who is set to appear in court later today to meet the conditions of his bail.

Shell pension fund may lose €45m via Madoff

Wednesday 17 December 2008

Royal Dutch Shell announced on Wednesday afternoon that its pension fund may have lost $45m from its indirect involvement in the massive securities fraud allegedly perpetrated by American trader Bernard Madoff.

‘The investment will do no material damage to the financial position, even if the whole amount has to be written off,’ the company said in its statement.

© DutchNews.nl

ARTICLE

AMSTERDAM, Dec 17 (Reuters) - The Dutch pension fund of Anglo-Dutch oil giant Royal Dutch Shell said on Wednesday it has a $45 million exposure to the alleged $50 billion fraud by prominent Wall Street trader Bernard Madoff.

I just saw on Dutch TV that a financial advisor claimed he KNEW that the Shell pension fund had invested in this Madoff fund in the recent past. He did not know whether they still are invested in this fund and phoned them. They would not say. Apparently they have borrowed 500 mln Euro at 4% with Fortis and bought into the Madoff fund which ‘guaranteed’ 7%. They also invested 500 mln Euro of ‘their own’ money. Since the Pension Fund had no comments, it presumably is true.

Shell's pension fund has commissioned a report to establish if its long-term strategy needs changing and will submit a recovery plan to the Dutch Central Bank, which is also the country's pension regulator, next year.

The Times read more

Royal Dutch Shell A fell 49p to £17.50 after reports that its Dutch pension fund has fallen into deficit, with stock market turmoil knocking 40 per cent off its value.

All in all, the total value of the Pension Fund’s investments has declined by some 40% since the start of this year.

PLUNGING equity markets have seen the total assets of Royal Dutch Shell's Dutch pension fund fall below the level required by Holland's central bank, De Nederlandsche Bank (DNB).

FT: The letter was published by royaldutchshellplc.com, a website used to air complaints against Shell. The letter said that its assets were 70 per cent invested in equities and there was “an above average allocation to emerging markets”, both sectors that have suffered badly in the downturn.

International Herald Tribune: Royal Dutch Shell's Dutch pension fund has fallen into deficit as share market turmoil knocked 40 percent off the fund's value, forcing the oil major and employees to increase contributions

Plunging equity markets have seen the total assets of Royal Dutch Shell's Dutch Pension Fund fall below the level required by Holland's central bank, although the company's UK pension scheme remains fully funded.

Shell's pension fund has commissioned a report to establish if its long-term strategy needs changing and will submit a recovery plan to the Dutch Central Bank, which is also the country's pension regulator, next year.

The drop in ratio is a result of the fund's focus on equities and the fund said it would now decrease its share investments and shift into government bonds to reduce risk, the letter, seen by Reuters, said. A full copy of the letter is published on activist website royaldutchshellplc.com.

More pension funds in trouble

Friday 12 December 2008

Shell’s Dutch pension fund has fallen below the legal reserve ratio of 105% to 85%, the Telegraaf reports on Friday, quoting BNR radio. The claim is based on a letter to Shell employees, the radio station said.

A reserve ratio of 100% means the fund has sufficient assets to meet all its pension obligations.

The Shell pension fund regulation includes an agreement that if its reserves are below 105% for six months, the company must shore up its assets. Some staff also face higher premiums next year, the paper says. read more

POSTING ON “SHELL LIVE CHAT” BY A SHELL PENSIONER, Thursday 11 December 2008

I just received a letter from Shell Pensionfund (dutch) that the coverage has dropped to 85% (Dutch legal limit is 105%). About a year ago it was around 170% I believe.

Some amateurs have been gambling with the fund and now there is a huge shortfall. I still have the letters of the past where they were congratulating themselves with the good management and strategies… And no doubt cashing in big bonusses. Why did nobody convert shares to bonds when there was this enormous surplus? That would be good husbandry. But like other Shell functions, it always has to be better and more. read more

JPMorgan today announced an agreement with Shell Asset Management Company (SAMCo), the asset management arm of Royal Dutch Shell, enabling a global provision to service Shell corporate pension and insurance plans with total assets in excess of $70 billion.

IPE.com: Shell pension chief sees three sources of return

“Shell made headlines last week with news it plans to consolidate €50bn of worldwide pension assets in Holland.”

Wednesday 14 Sept 2005

NETHERLANDS – Sijb Bartelma, chief investment officer of Shell Pensioenfonds, has explained why he thinks there are three sources of investment return.

The first is “strategic beta”, derived from exposure to market risk. The second is “strategic alpha” from the deviation from ‘plain vanilla’ asset mixes.

And the third he termed “operational alpha” – from what might be regarded as ‘stock picking’.

There was an unlimited supply of the first, while the third is “scarce” and a “kind of game” he told a meeting organised by the catering scheme Horeca at its new offices near The Hague yesterday. read more