Discretionary pension increases

Under the Rules of the Fund, pensions for pensionable service in the Fund before 1 January 2008 are generally guaranteed to increase annually in payment, linked to rises in the Retail Prices Index (RPI) up to 5%. Any increases granted in excess of 5% are entirely at Unilever's discretion. Unilever has, in the past, exercised this discretion to grant annual increases to such pensions above 5% at times when it was sensible and affordable to do so. With effect from April 2011, whilst Unilever retains the power to grant discretionary increases to pensions in payment and will continue to consider carefully each year whether it is appropriate to exercise that discretion, you should not expect annual discretionary increases to be granted in the future.

You should also not expect that discretionary increases will be granted for pension built up since 1 January 2008 (whether you choose the 7% or 8.5% contribution level).