Welcome to PME pension fund

Dear Sir, Madam,

Welcome to PME pension fund. Because you are employed by <employer>, you have been building up a pension with us since <date>. We are writing to explain everything to you. You should also watch the short video on www.pmepensioen.nl/welkom, and read the appendix to this letter.

A complete package has been arrangedA pension has been arranged for you with PME. You will receive this when you retire. You decide for yourself when you wish to retire. Your partner will receive a pension if you pass away. This pension continues until your partner passes away. Check in My PME whether the arrangements for your partner are satisfactory.

Pension premiumYour employer pays the contribution for your pension, and can deduct part of this from your gross salary. PME invests the money, so that your pension grows.

What choices do you have?Virtually everything is arranged for you, but it is also important that you make a number of personal choices: • All mail digital? You will find all the important information about your pension online in My PME. Log in to www.pmepensioen.nl/mijnpme and fill in your email address. This saves a lot of paper - so, trees - and postage. Furthermore, you have access to all your personal pension information in one place, and you won’t miss a thing. But if you would still prefer to receive information on paper via the post, then change your preference in My PME.

• Consider whether you would like to arrange for an extra partner’s pension Does your partner have no salary or a low salary? Then the benefit received by your partner might not be enough if you pass away. You can insure an Surviving Dependent’s benefit shortfall pension. This way, your partner receives extra pension until they become entitled to the state retirement pension. You will find more information about this on www.pmepensioen.nl/anwhiaatpensioen. Or you can arrange it directly via My PME. You cannot take out this insurance if your employer has arranged for Surviving Dependent’s benefit shortfall pension with another provider. In this case you should enquire about the possibilities with your employer.

• Think about whether you want to transfer your existing pension to PME Have you already built up a pension with another pension fund? In that case you can bring that pension with you to PME. You can find more information about this on www.pmepensioen.nl/welkom. Or arrange it directly via My PME.

Do you have any questions?Then you can contact us via www.pmepensioen.nl/contact. Or call our Client information division via+31 88 007 98 00. We are keen to help!

PME deals with your personal data very carefully. Your privacy is important to us. For more information, visit www.pmepensioen.nl/privacy-statement.

With kind regards,PME pension fund

Marièle Pootmanager pension administration

Appendice: layer 1 of the Pension 1-2-3

your reference your letter of our reference date PME August 2020

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Postbus 97630, 2509 GA Den HaagTelephone: +31 88 007 98 00Contact form: www.pmepensioen.nl/email

Januari 2020 - v.5 • 1/2If you wish to know your total pension, go to www.mijnpensioenoverzicht.nl.

What will you receive in our pension scheme?

Explanation of the Metal and Technology Industry Pension Fund (PME) pension scheme This Pension 1-2-3 explains what you will and will not receive in our basic pension scheme. That is important to know if, for instance, you change jobs, become occupationally disabled or relocate. Pension 1-2-3 does not provide personal information about your pension. Personal information can be found in My PME at www.pmepensioen.nl/mijnpme and on your annual Uniform Pension Overview (UPO). Your total pension can be found at www.mijnpensioenoverzicht.nl. In our investment policy you can read more about how we approach responsibble investment.

Your pension information in layers 1, 2 and 3Pension 1-2-3 consists of three layers.• Layer 1 provides a brief summary of the most important information about your pension scheme.• Layer 2 provides more information about all subjects in layer 1.• Layer 3 provides legal and policy-related information from PME.You will find layers 2 and 3 at www.pmepensioen.nl/123. You can also request layers 2 and 3 from our Customer Information Department, telephone number +31 (0)88 - 007 98 00.

If you are retiring, you will receive an occupational retirement pension. You will receive this in the month that you reach your state pension age.

If you die when you are still building up pension at PME, your partner will receive a partner’s pension.

If you die when you are no longer building up pension at PME, the partner’s pension for your partner will be lower.

If you have children when you die, your children may be entitled to an orphan’s pension.

If you become occupationally disabled for more than 35% (WIA), your pension build-up will continue. You will no longer have to pay a contribution. PME will do that for you.

If you wish to know exactly what our pension scheme offers you, read the pension scheme rules at www.pmepensioen.nl or request them from us.

What will you not receive in our pension scheme?

You do not build up pension in our pension scheme above the salary threshold of EUR 78,348 gross per year (in 2020 on a full-time basis). Ask your employer whether a supplementary scheme has been arranged for you.

If you become occupationally disabled, you will not receive an occupational disability pension from PME. Your employer may have insured a supplement to your WIA benefit, ask your employer about this.

You build up pension in three ways:A. State pension. This is the pension you receive from the government. You can read more about the state pension at

www.svb.nl.B. Pension at PME. You build up this pension via your employer. This is what this Pension 1-2-3 is about.C. Pension that you arrange yourself, e.g. an annuity or savings account.

Every year you build up part of your pension. The pension you are building up is the total of all those parts. This is called a career average scheme. From your retirement, you will receive this pension for as long as you live.

Every year, you build up part of your eventual pension. You do not do so on your entire gross salary, because we take into account the state pension that you receive from the government. For that reason, you do not build up pension on the first EUR 14,554 (in 2020). Neither do you pay a contribution on this amount. On the rest of your salary (up to a maximum of EUR 78,348 in 2020), you build up 1.875% (in 2020) in pension each year.

You pay a monthly contribution for your pension. Your employer does so too. You can ask your employer how much you pay and how much the employer pays. The contribution you pay yourself is stated on your salary slip.

How do you build up pension?

Januari 2020 - v.4 • 2/2If you would like to know more about your pension, view layers 2 and 3 of Pension 1-2-3 at www.pmepensioen.nl/pensioen123.

The level of your pension is not fixed. We have to deal with risks that influence the level of your pension. Examples include: • On average, people are living longer. So we have to pay out the pension for a longer period. • Low interest rates make pensions more expensive. More money is needed to be able to pay out the same pension.• The results of our investments may be disappointing.• Read more about the financial situation and the funding ratio, which may have consequences for your pension,

in layer 2 at www.pmepensioen.nl/pensioen123.

Each year, we try to increase your pension in line with price increases. This is called indexation. It is possible only if PME’s financial situation is good enough. We have not indexed pensions in recent years.

As we have a shortfall, PME has a recovery plan involving the following measures: • Your pension will not increase in line with price rises in the next few years. • The contribution has been fixed up and including 2019. The pension build-up of 1.875% per year may be lowered.• Your pension may be reduced. We will do this only as a last resort. In 2014, we reduced the pensions by 0.5% and in

2013 by 5.1%. We did not reduce the pensions in 2017, 2018 and 2019.

How secure is your pension?

Indexation Rise in prices*

2019 0% 1.73%2018 0% 1.36%2017 0% -0.32%

* Price increases over the period 1 July - 1 July prior to the year, based on data from the Central Bureau for Statistics.

What costs do we incur?

When must you take action?

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What options do you have?

If you change jobs and also pension administrator, you can transfer the pension you have built up to your new pension administrator.

If you wish to compare your pension scheme with another pension scheme, use the enclosed pension comparison tool (Pensioenvergelijker). You will also find this at www.pmepensioen.nl.

If you wish to arrange more income for your partner when you die, you can opt to insure extra partner’s pension.

If you wish to exchange part of your occupational retirement pension for more partner’s pension, you can do so when your pension build-up ceases at PME, or just before you retire.

If you wish to exchange all or part of your partner’s

pension for more occupational retirement pension for yourself, you can do so just before you retire.

If you would like to start working less, you can opt to have part of your pension commence before you retire. Request this from us three months before the desired commencement date. Discuss this with your employer.

If you would like to retire earlier or later, request this from us at least three months before the desired commencement date. Discuss this in advance with your employer.

If you wish to start with a higher or lower pension, you can do so at the time when you retire.

We incur the following costs when administering the pension scheme:• administration costs • asset management costs

Just before your retirement or if you wish to take early retirement.

If you change jobs. You can transfer your previously built-up pension to your new pension administrator.

If you become occupationally disabled.

If you are getting married, cohabiting or entering into a registered partnership.

If you are getting divorced or the cohabitation or registered partnership ends.

If you relocate abroad or relocate in a foreign country.

If you become unemployed or in the case of dismissal.

If you take interim leave, such as parental leave.

We must be notified in the event of your death.

To view your total pension from all your employers, go to www.mijnpensioenoverzicht.nl.

If you have any questions or if you are taking action and/or making choices, go to ‘Jouw situatie at www.pmepensioen.nl or contact us using www.pmepensioen.nl/contact.

Pension comparison tool:compare two pension schemes

read more on the next page

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ExplanationThis step allows you to compare what you will and will not receive in your current and future pension scheme.If you will not receive something, you can see that from the cross that is placed on an icon.

Are you building up occupational retirement pension?If so, what is the retirement age?

Will your partner receive a pension benefi t when you die?

Name of pension fund, insurer or employer

Metal and Technolgy Industry Pension Fund (PME)

Name of pension fund, insurer or employer

Will your children receive a pension benefi t when you die?

Will your pension build-up continue if you become fully or partially occupationally disabled?

Will you receive a supplementary pension if you become occupationally disabled?

Yes, retirement age 68

No

Yes, retirement age

No

Yes

Yes, as long as I work at this employer.

Yes

No No

Yes, as long as I work at this employer.

Yes

Yes, as long as I work at this employer.

Yes

No No

Yes, as long as I work at this employer.

Yes

No

Yes

No

No No

ExplanationThere are diff erent types of occupational retirement pension. In layer 1 in the How do you build up pension? section, you can see how you build up pension. You will then see one of the adjacent icons. You will not see the other icons. Which icon is being used?

The How do you build up pension? section then off ers more information about the following elements:

How high is the state pension off set? Remember: in the case of a lower state pension off set, you build up more pension than in the case of a higher amount.

What is the percentage of the pension that you build up annually? Remember: You can complete this only in the case of a fi nal salary or career average scheme.

State pension off set € 14,554

State pension off set €

1.875%

Not applicable

%

Not applicable

STEP 1: What will you receive and what will you not receive in the pension schemes?

STEP 2: How do you build up pension?

Yes Yes

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Why compare your pension scheme?Pension schemes diff er. This pension comparison tool shows you the diff erences between two pension schemes. You see, for instance, what you will and will not receive. You can see what the diff erences are and what this means for you. You can then opt to arrange something yourself. An understanding of the diff erences is one of the aspects when deciding whether or not to transfer your pension to the Metal and Technology Industry Pension Fund (PME). You will fi nd details of our fi nancial situation and the funding ratio under www.pmepensioen.nl/dekkingsgraad.

Compare your pension scheme in fi ve stepsUse this pension comparison tool step by step. The terms used are explained in layer 1. We have already entered the main points of the PME pension scheme for you below.Remember: the pension scheme rules take precedence regarding your rights and obligations.

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Up to what maximum salary can you build up pension? This maximum salary is called the maximum pensionable salary. If you earn more than the maximum pensionable salary, you will not build up pension above that amount.

Do you pay a personal contribution to your pension?Remember: this is not in layer 1. See your salary slip or ask your employer whether you pay a personal contribution and, if so, how much.

Name of pension fund, insurer or employer

Metal and TechnologyIndustry Pension Fund (PME)

Name of pension fund, insurer or employer

No No

Maximum salary€ 78,348

Maximum salary €

ExplanationIn step 1, you were able to see what you will and will not receive as standard features in the pension schemes. In addition, you can sometimes opt for a number of things yourself. In this step, you see what options you have in both pension schemes.

Can you opt to arrange a voluntary or supplementary partner’s pension, orphan’s pension or occupational disability pension?

Partner’s pension

Orphan’s pension

Partner’s pension

Orphan’s pension

Occupational disability pension

Not applicable

Occupational disability pension

Not applicable

Voluntary Voluntary

Can you opt to arrange extra occupational retirement pension?

Yes

No

Yes

No

If you earn more than € 110,111 per year, can you opt to become a participant of a separate pension scheme?

Yes

No

ExplanationThe amount of pension that you will fi nally receive is still uncertain in many cases. In this step, you see whether the level of your pension has been fi xed or not, whether your pension increases in line with the rise in prices or wages and whether your pension may be reduced due to, for instance, an excessively low funding ratio. Remember: the lower the policy funding ratio, the greater the risk that your pension will be reduced.

Has the level of the pension benefi t already been fi xed?

Does the level of the pension benefi t depend on the investment results?

Yes

No

Yes

No

Does the pension increase in line with prices or wages (indexation)? If so, what was the percentage increase in recent years?Remember: you can complete this question only if you entered fi nal salary or career average scheme in step 2.

NoYes, in indexation2019 0 %2018 0 %2017 0 %

NoYes, in indexation

% % %

Yes

No

Yes

No

Can the pension be reduced due to, for instance, an excessively low funding ratio?Remember: you can complete this question only if you entered fi nal salary or career average scheme in step 2.

NoYes, in reduction2019 0 %2018 0 %2017 0 %

NoYes, in reduction

% % %

You now know what the diff erences are between both pension schemes. Assess how important these diff erences are for you and consider what the diff erences mean for you. You may want to arrange something extra yourself. If you want to know more about the diff erences and what they will mean for the level of your pension, contact our Customer Information Department via www.pmepensioen.nl/contact. Or contact a pension consultant in your region at www.pmepensioen.nl/contact.

Yes

No

STEP 3: What options do you have?

STEP 4: How secure is your pension?

STEP 5: Assess how important the diff erences are for you.

Yes, € Yes, €