14 Personnel costs

The pension fund costs chargeable to the financial year can be broken down as follows:

In line with the Dutch pension system, this pension plan is financed by contributions 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 supplementary premiums (indexation) depends on the investment return. The annual accrual of pension entitlements amounted to 23.1% of the pensionable salary in 2018 (2017: 23.1%), with a maximum of € 105,075. The annual employee contribution is at least 1.75% and capped at 4.2% of the pensionable 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 € 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 116.8% in 2018 (2017: 114.5%). 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.

Employees

The number of employees stood at 169.7 FTEs at year-end 2018 (2017: 152.5 FTEs). The average number of employees in 2018 was 162.0 FTEs (2017: 143.0 FTEs).

Remuneration

In the year under review, Bouwinvest, paid total remuneration (including social security charges and pension premiums) of € 19.7 million to 169.7 FTEs (2017: € 16.6 million to 152.5 FTEs), 5.3% of which was variable remuneration, with the remainder fixed remuneration.

The total remuneration includes an amount of € 1.4 million (2017: € 1.3 million) for the members of the Board of Directors. The Board of Directors are the only staff members whose actions have a significant influence on the risk profile of the Residential Fund, the Retail Fund, the Office Fund and the other Funds and the separate mandates of the investment manager. The variable remuneration is awarded on a discretionary basis determined by the Bouwinvest Board of Directors and is partly dependent on the performance of the company. The variable remuneration of the Board of Directors is determined by the Supervisory Board and is capped at 20% of the annual salary.

The remuneration for the members of the Supervisory Board amounted to a total of € 125,000 in 2018 (2017: € 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.