29. Employee benefits

Employee benefits include:

• liabilities arising from early retirement schemes (RVU scheme);

• liabilities arising from other employee benefits, including long-service awards and disability benefits;

• liabilities arising from the retention bonus for CLA employees and temporary workers.

The changes in the liabilities were as follows:

Early Retirement Scheme

The temporary Early Retirement Scheme (RVU) was introduced in 2021. Employees who are employed and who reach the statutory retirement date before 1 January 2028 may retire a maximum of three years earlier, in which case an amount of €22,164 gross will be paid out in either monthly instalments or as a lump sum. In 2022, this scheme was extended by one year (before 1 January 2029) and increased to €24,444 for the scheme to take effect from 1 January 2023.

This scheme is regarded as a so-called ‘post-employment’ plan, whereby the service costs are recognised through the income statement and the unrealised actuarial results through the statement of comprehensive income.

To calculate the Early Retirement Scheme (RVU) liability, the AG2024 forecast table was used.

The actuarial result that has been recognised through the statement of comprehensive income is caused in 2023 by a change in estimates with regard to the probability of participation in the early retirement scheme.

The sensitivities are as follows:

Long-service award obligations

Employees who have been with NS for 12.5, 25, 40, 45 and 50 years of continuous and consecutive service receive a long-service bonus. Employees of the retail company receive a long-service bonus on 5, 12.5, 25 and 40 years of NS service.

The AG2024 mortality table was used for the calculation of the long-service award obligations.

The sensitivities are as follows:

Disability obligations

This concerns a commitment for:

• a CLA supplement for incapacitated persons employed by NS, paid by the Foundation for the Promotion of Labour Participation on Incapacity for Work (Stichting ter Bevordering van Arbeidsparticipatie bij Arbeidsongeschiktheid) until 2023. From 2024, NS will pay out this CLA supplement. The scheme in question is closed to new participants;

• A reintegration allowance paid by NS to a group of work-disabled people.

The AG2024 forecast table was used for the calculation of the disability obligations.

The sensitivities are as follows:

Retention bonus

The collective labour agreements covering the period up to 1 March 2025 stipulate that employees will receive a retention bonus. Employees who are employed on 31 December 2024, and have been employed for at least 12 months, will receive the retention bonus in January 2025. Employees who joined during 2024 will receive the retention bonus in 2025 at the end of the quarter in which they have been employed for 12 months. The retention bonus also applies to temporary workers.

Pension plans

The staff of the NS Group companies are covered by the pension plans of the following pension funds. The table also shows the numbers of active members.

Railway and Public Transport Pension Fund pension plan (defined contribution plan)

The pension plan for the railway industry is administered by the Railway and Public Transport Pension Fund (Pensioenfonds Rail en OV). The plan qualifies for recognition in the financial statements as a defined contribution plan. A fixed annual contribution, which is expressed as a percentage of the pensionable earnings, has been agreed in advance with the Railway and Public Transport Pension Fund. In 2024, NS paid the nominal pension contribution of 26.8% to the pension fund. Two-thirds of the pension contributions paid to the Railway and Public Transport Pension Fund are paid by the company, and one-third is paid by the employees. After payment of the agreed contribution, the company has no obligation to pay additional amounts should there be a deficit in the pension fund. The actuarial risks and investment risks are borne by the pension fund and its members.

At the end of 2015, the Group made new agreements with the pension fund for dealing with the contribution build-up that came into effect on 1 January 2016. The employee portion of the contribution build-up (one-third of the amount) was settled in full with the employees at year-end 2022. The employer’s part of the contribution build-up (two-thirds of the amount) has been added to the lump-sum payment for wage increases and will be credited to the pension costs up to 2035 (note 28).

The Servex supplementary pension scheme is a defined contribution plan.

Industry pension funds (hotel and catering, food, metal and engineering)

The basic pension for each employee is covered by multi-employer funds in which other companies also participate on the basis of legal obligations. These funds have an indexed average salary scheme and are therefore defined benefit plans. Since these funds are not equipped to provide the required information on the Group’s proportionate share of the pension liabilities and plan assets, the defined benefit plans are accounted for as defined contribution plans. The Group is obliged to pay the predetermined contribution for these plans. The Group cannot recover any surplus and is not obliged to make up any shortfall except through adjustment of future contributions.