Wages and salaries
Social security charges
Pension fund charges
Other personnel costs
The pension fund costs chargeable to the financial year can be broken down as follows:
Pension fund agreements chargeable to the financial year
In line with the Dutch pension system, this pension plan is financed by contributions (premiums) to an industry pension fund. For Bouwinvest, this is APG’s Ondernemingspensioenfonds (OPF).
The accrued entitlements are always fully financed in the relevant calendar year via - at the very least - cost-effective contribution payments. The pension plan is a career average plan including a single payment scheme, for both active and inactive participants (sleepers and retired persons). The granting of supplements (indexation) depends on the investment return. The annual accrual of pension entitlements amounted to 23.8% of the pensionable salary in 2019 (2018: 23.1%), with a maximum of € 107,593 (2018: € 105,075). The annual employee contribution is at least 1.75% (2018: 1.75%) and capped at 4.2% (2018: 4.2%) of the gross salary. The management board of the industry pension fund determines the contribution each year on the basis of the coverage ratio and expected returns.
In addition to this basic scheme, which is mandatory for every Bouwinvest employee, Bouwinvest also has a net pension scheme (Netto Pensioen Regeling - NPR), which is offered to employees with a total fixed income above the permissible fiscal limit of € 107, 593 (2018: 105,075). These employees receive an employer contribution amounting to the maximum deposit in a net pension scheme. Participation in the net pension scheme is voluntary.
The industry pension fund in question has stated that its coverage ratio was 105.2% in 2019 (2018: 116.8%). On the basis of the agreed pension scheme, the group has no obligation to make additional contributions in the event of a deficit, other than in the form of higher future contributions.
The number of employees stood at 185 FTEs at year-end 2019 (2018: 170 FTEs). The average number of employees in 2019 was 175 FTEs (2018: 162 FTEs).
In the year under review, Bouwinvest paid total remuneration (including social security charges and pension premiums) of € 21.6 million to 185 FTEs (2018: € 19.7 million to 170 FTEs), 5.3% of which was variable remuneration, with the remainder fixed remuneration.
The variable remuneration is awarded on a discretionary basis determined by the Bouwinvest Executive Board of Directors and is partly dependent on the performance of the company. The variable remuneration of the Executive Board of Directors is determined by the Supervisory Board and is capped at 20% of the annual salary.Bouwinvest’s remuneration policy is assessed on a regular basis and updated when necessary.
The total remuneration included an amount of € 1.4 million (2018: € 1.4 million) for the members of the Executive Board of Directors, with € 0.6 million of this paid out as remuneration for the statutory directors. An additional € 4.1 million (2018: € 3.7 million) was paid out to other staff members who influence the risk profile of the organisation. Together, this group form the identified staff, whose actions have a significant influence on the organisation, the funds and the mandates.
The remuneration for the members of the Supervisory Board amounted to a total of € 105,000 in 2019 (2018: € 125,000).
Bouwinvest manages five Dutch real estate sector funds and three mandates for international real estate investments. The Residential Fund, the Retail Fund and the Office Fund are open for institutional clients. Bouwinvest manages the Hotel Fund and the Healthcare Fund, together with its international real estate investments, exclusively for bpfBOUW. The international portfolio includes both listed and non-listed real estate funds in Europe, North America and the Asia-Pacific region. It is not possible to allocate the remuneration per investment entity and this information is therefore not available.