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Shell Pensions 80% Funded, Contributions Raised To Fill Gap


APRIL 27, 2009, 5:02 A.M. ET

LONDON (Dow Jones)–Royal Dutch Shell PLC (RDSB.LN) said Monday that the ratio of assets to liabilities in its pension fund is now only 80% following the slump in global equities, and it has increased contributions to fill the gap.

Shell’s contribution to the fund has risen from 5% to 23.6% and the employee contribution has risen from 2% to 8% of salaries, the company said in an update posted on its Web site Saturday. The increased payments should bring the pension’s funding ratio to 105% within three years and 127% by 2023, the company said.

The pension fund is also reducing its exposure to investments in equities, which it considers to be higher risk. The fund will now comprise 30% shares, 50% fixed interest and 20% alternatives, compared with the previous 55-30-15 mix, the statement said. Exposure to emerging market shares has been cut by five percentage points to 20% of shares.

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-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; [email protected]

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