1. What about my pension?

2. It’s time to act! RBS announced changes to its Corporate & Institutional Banking Division with significant impact for all of us in NL. Stick with me and learn what will happen after you leave employment. I will get you on track. Once you know, act on it!

3. Still going strong The pension fund is financially robust with a conservative investment policy and a high premium paid into the fund for new accrual and the reimbursement of costs. Funding ratio 135% o Hurdle for full indexation of 127% o Based on market rates: 119% Expected retention of purchasing power: 99% o feasibility test o In 5% of worst-case scenarios expected retention is 65% Average premium is 62% of pensionable salary in 2015 3

4. Starting with you, why act? Your employment with RBS will be discontinued Redundancy Your pension accrual stops Survivor benefits are now based on your accrued pension Between jobs Should you transfer your pension to your new employer? New job Pension liabilities likely to be transferred to 3 rd party Investment risk might be shifted towards you as RBS plc is seeking a clear-cut solution for the RBS NL Pension Fund Future fund 4

5. Your pension benefits Your pension with RBS NL Pension Fund breaks-up in: 1.Old age pension Based on average pay throughout your career Up to EUR 100k 1.875% annual accrual over 42 years Offset of EUR 12,642 to account for statutory old age state pension (AOW) 2.Survivor benefits Capital accrual rather than risk cover Partner’s pension: 70% of old age pension Orphan’s pension: 20% of partner’s pension per child 3.Premium waiver in case of disability 5

6. What are your other RBS benefits? You may also have received Uniform Pension Statements (UPS) from: ABN AMRO Pensions: net pension scheme >EUR 100k Delta Lloyd: disability insurance (WIA excedent) o Income replacement after two years of disability (>35%) until old age pension (AOW) entitlement commences De Goudse: insurance to cover gap in surviving dependants’ pension o Defined benefit insurance payment for spouse until old age pension entitlement commences These benefits are arranged via the RBS HR department. For questions please contact HR Delivery Services or your insurance company. 6

7. What happens when you leave? Pension accrual stops Statement of accrued rights provided Benefits for surviving dependant will be based on accrued old age pension entitlement No more premium waiver in case of disability No more disability insurance with Delta Lloyd No more surviving dependants’ benefit gap insurance with De Goudse Accrual in ABN AMRO Net Pension scheme will end Uniform Pension Statement will be sent every five years Pension benefits will be paid as from the pensionable age

8. If you find new employment What are your options? You can leave your accrued benefits with the RBS NL Pension Fund You can transfer your accrued benefits to the pension scheme or insurance policy of your new employer Commutation is allowed for small pensions up to EUR 462,88, but can be initiated only by the RBS NL Pension Fund o no sooner than two years and no later than two and a half years after termination of the employment or at the actual retirement date if that date occurs earlier.

9. What is a value transfer? A transfer of your pension rights from the scheme of your former employer(s) to your subsequent employer. Old age pension Survivor benefits Designed to prevent or limit any loss of pension rights Transfer mechanism is regulated

10. Should I transfer my pension? Case specific, but pay attention to at least following aspects: You transfer your nominal pension rights, leaving the surplus behind Financial set-up of pension schemes o Funding ratio o Premium as % of pensionable salary o Pension result Policy for granting indexation Shortfall guarantee sponsor Defined benefit or defined contribution Flexibility of the scheme It might not always be possible to transfer, for example because: o The funding ratio of the scheme of your new employer might not allow for it o A required additional lump sum is declined by the employer o A request was made more than six months after you leave your employment

11. How can you initiate the transfer? Request a transfer with your new pension administrator o Within 6 months after you stop being employed by RBS o Information request will be sent to the RBS NL Pension Fund You will receive a proposal o You can accept the proposal or not o Seek expert advice If you accept the proposal, your new pension administrator will retrieve the transferrable value from the RBS NL Pension Fund The value must be translated into entitlements under the new pension scheme The value is transferred The outcomes must be entered into the administration and the participant should be informed accordingly

12. Can you transfer abroad? What is possible? Keep your pension rights with the RBS NL Pension Fund Transfer your pension rights abroad, a so-called international value transfer Case specific Requires specialist advice More often than not a transfer does not materialise Within the EU you are entitled to a value transfer Additional DNB requirements Conditions Dutch tax authorities If you are planning to move abroad, please remember to provide the fund with your contact details.

13. Can our fund be sustained? Simplification in run-off One-tier board is better operating model Governance Key person risk with regard pension office, board & committees Succession planning more cumbersome given required up-front qualifications Staff Continuation of corporate pension fund more costly than most alternatives Costs 13

14. Stakeholders’ interests Reputation of new provider Pension result: chance of full indexation Decision on value transfer to pension fund of new employer You Impact on capital, IFRS consequences and available budget Future exposure to downside investments Resources required going forward in terms of expenses and staffing Plan sponsor Key person risk during run-off increasing overall risk profile Reputational risk Tenor of commitment and possible conflicts with new employer Board of Trustees Obligation to fulfil pension agreement Uncertainty around timing and pace of run-off Continued staff motivation Management Team NL Fulfil pension agreement until go-through Find good home with reputable party Open to discuss CDC arrangement Labour unions 14

15. Stakeholders’ interests (2) Staffing issues AB during run-off phase Need to be able to consult with experts on proposed solutions Accountability Body Consent required from WC for alternative provider Provide context for decision-making by participants Works Council Limits to discretionary authorities of Board of Trustees DNB will evaluate if proposed solution is balanced and to the greatest extent possible actuarial neutral AFM will closely monitor communications Regulators Tax authorities will assess possible fiscal excess, limiting the number of viable alternatives Tax position of non-resident participants and participants transferring accrued benefits abroad Tax authorities 15

16. Alternatives to RBS NL Pension Fund Insured - buy-in -buy-out Other Fund -PGB General Pension Fund - Commercial -Non-commercial Other -IORP 16

17. Can I take my money out? What are the possibilities around commutation of pension rights? Dutch Pension Act (art. 65) does not allow commutation of pension However, commutation is allowed for small pensions up to EUR 462,88 (2015) Commutation is a unilateral right of the administrator (and not yours) as a means of economising on administration costs The net present value of the annual pension payments will be paid into your account and added to your annual income. Progressive income tax will be levied It is not possible to take your money out of a pension scheme by means of commutation. 17

18. Can I transfer to a PPI? Some participants have indicated to perceive this to be a better way of accruing capital A premium pension institution (PPI) is a low-cost solution for the accrual of pension capital Risks are shifted to the participants Ownership rights are clearly defined without adverse effects of intergenerational solidarity Participants may decide to invest according to their own beliefs However A PPI cannot provide annuities or provide insurance against longevity or morbidity risks. As such it is only a partial solution. Participants of the scheme that receive a pension (including widows and orphans) cannot be serviced by a PPI In addition our financial set-up gives cause to several tax issues Our pension fund cannot be liquidated into a PPI and participants need to individually consent to a value transfer at 100% (rather than the higher funding ratio of the RBS NL Pension Fund). An alternative needs to be provided for those who opt-out regardless. 18

19. Why are we looking at the APF? With the ABN AMRO Pension Fund no longer a viable option the Pension Fund is studying the Algemeen Pensioen Fonds (APF) with great interest. This is our current thinking: We aim for a similar pension result with an alternative provider APFs are being set-up by reputable parties and the challenge is to pick a leading consolidator with a sound reputation, good credit quality and a credible investment policy Solution can be structured without future governance requirements Possibility to opt for a ring-fenced solution, although current preference is for a pooled solution Indicative quotes are very attractive, cutting costs by at least 2/3 rd APF seems feasible from a tax perspective 19

20. APF will prove successful Insurance companies Attracts less solvency Change from guarantees to asset gathering Competitive with industry-wide pension funds Pension funds Reduced governance burden Reduced costs Enhanced pension result Regulator Fewer entities to oversee Enhancement in competency and professional conduct Harmonisation 20 Good momentum as APF brings a solution to the supply and demand side of the industry

21. What are our timing considerations? Legislative proposal was adopted by the Lower House of parliament on 18 June Discussion in the Upper House currently on hold New act to come into effect on 1 January 2016 at the earliest Legislative process States General Already engaging in exploratory talks with parties interested meticulous process, involving many interviews and careful assessment of all relevant documentation, even before the actual application is submitted Authorisation expected 1H16 Experience with PPI could expedite process Authorisation process DNB After authorisation has been granted by DNB After taking some time to see competitors entering the market and some clarity on leading consolidators allow for the product offering to mature When to commit? 21

22. Now you know, act on it! Make an assessment of your pension arrangements o Our OnTrack module can help you with that o Accessible via our website www.rbsnlpensionfund.comwww.rbsnlpensionfund.com o Our pension planner can provide insight in flexible solutions if you are approaching the pensionable age A financial advisor can help you with financial planning o This could be someone you already know, your bank or a specialist financial planner Initiate a value transfer to the pension scheme of your new employer, provided this makes economic sense and is allowed by the regulator Arrange insurance to cover the risk of disablity and possibly additional risk coverage for survivor benefits 22

23. References RBS NL Pension fund www.rbsnlpensionfund.com info@pensioenfondsrbs.nl Telephone: 013-462 35 49 www.mijnpensioenoverzicht.nl Uniform Pension Statement (UPS) Other pension and insurance-related products Contact HR Delivery Services Delta Lloyd disability insurance: +31 20 594 8100 De Goudse insurance to cover gap in surviving dependants’ pension: +31 182 544 949 ABN AMRO Pensions: +31 20 58 31 111 23

24. Now you know, act on it! - run OnTrack or - use pension planner, - decide on value transfer, - review insurances