14 Personnel costs

The pension fund agreements chargeable to the financial year are composed as follows:

Pursuant to the Dutch pension system this plan is financed by contributions to an industry pension fund. Participation in the industry pension fund has been made obligatory in the collective labour agreement applicable to Bouwinvest.

The related accrued entitlements are always fully financed in the related calendar year through – at least – cost-effective contribution payments. The pension plan is a career average plan including – for both active and inactive participants (sleepers and retired persons) – conditional granting of supplements. The granting of supplements depends on the investment return. The annual accrual of the pension entitlements amounts to 22.0% of the pensionable salary (2015: 22.7%) with a maximum of € 101,519. The annual employee-paid contribution is at least 1.75% and capped at 4.2% of the pensionable salary. Based on the funding ratio and expected returns the board of the industry pension fund sets the contribution every year.

In addition to these basic rules which are mandatory for every employee, there is also a net pension scheme (Netto Pensioen Regeling) offered to employees with a total fixed income exceeding the permissible fiscal limit of € 101,519. These employees receive a contribution by the employer amounting to the maximum deposit in a net pension scheme; particpation in the net pension scheme is voluntary.

The related industry pension fund has stated that the funding ratio was 107.4% in 2016 (2015: 107.1%). Based on the administrative regulations the group has no obligation to make additional contributions in the event of a deficit other than through higher future contributions.

Employees

The number of employees at year-end 2016 amounted to 136.6 FTE (2015: 131.1 FTE). The average number of employees in 2016 was 134.0 FTE (2015: 129.6 FTE).

Remuneration

The investment manager, Bouwinvest, paid in 2016 a remuneration (including social security charges and pension premiums) of in total € 15.6 million to 136.6 FTE (2015: € 14.6 million to 129.6 FTE), of which 5.5% variable remuneration, and the remainder was fixed remuneration.

The total remuneration includes an amount of € 1.2 million (2015: € 1.1 million) for the Board of Directors. The Board of Directors are the only staff members whose actions has an important influence on the risk profile of the Residential Fund, the Office Fund, the Retail Fund and the other Funds and separate mandates of the investment manager. The variable remuneration is based on a discretionary basis by the Board of Directors of Bouwinvest and is partly dependent of 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 in 2016 amounted to a total of € 115,000 (2015: € 113,000).

Bouwinvest manages five Dutch real estate sector funds. 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. The remuneration cannot be explicitly allocated per entity and is therefore not available.