13 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 23.0% of the pensionable salary (2013: 23.6%). The annual employer-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.

The related industry pension fund has stated that the funding ratio was 114.0% in 2014 (2013: 116.3%). 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 2014 amounted to 128.0 fte (2013: 122.6 fte). The average number of employees in 2014 was 126.3 fte (2013: 126.8 fte).

Remuneration

The investment manager, Bouwinvest, paid in 2014 a remuneration (including social security charges and pension premiums) of in total € 13.8 million to 126.3 fte (2013: € 13.6 million to 126.8 fte), of which 6.8% variable remuneration, and the remainder was fixed remuneration.

The total remuneration includes an amount of € 1.0 million (2013: € 0.9 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.

During the reporting period, the manager, Bouwinvest is responsible for eight entities of which the Residential, Office and Retail Fund are under supervision of the Dutch Financial Markets Authority (AFM). The remuneration cannot be explicitly allocated per fund and is therefore not available.

The remuneration for the members of the Supervisory Board in 2014 amounted to a total of € 113,000 (2013: € 116,000).