Progress in the New Pension System (WTP)

Geplaatst op 29 January 2024

For over a year now, the social partners and the pension fund have been working on the transition to the new pension system. Efforts are being made to develop the pension scheme and how it can be implemented. The transition plan and administrative execution are taking shape. Time for an update.

Social partners and the pension fund each have their own responsibility in this process. Social partners elaborate on the pension agreement and consider whether merging the already accrued pension into the new pension scheme is a good idea. All of this is recorded in a transition plan. The transition plan is expected to be completed in the coming months. In this process, the association of retirees and the upcoming association of former participants are also consulted. The transition plan will be submitted to the supervisory authority DNB.

Balanced consideration of interests is important
The pension fund is preparing for the implementation of the pension scheme. As known, a project has been set up for this purpose. The carefulness in the process requires active involvement of the accountability body and the supervisory board of the pension fund. They have advisory or approval rights on important components. A balanced consideration of interests is crucial here.

Individual capital invested through lifecycles
Within this project, work is currently underway to elaborate on the pension scheme so that it can be implemented. This includes the more insurance-technical aspects of the pension scheme, as well as the investment policy. In the pre-retirement phase, individual capital will be invested through so-called lifecycles. In the payout phase, collective investment will be applied again, and here too, a good balance is sought between return and risk. The project is based on the outcomes of the risk preference research conducted last year.

Administrative execution via Appel
The preparation of administrative execution is, of course, also part of the project. In this context, the data quality of the administration at Achmea Pensioenservices and ABN AMRO Pensioenservices is examined. Because the pension fund has chosen to transition to Appel as an administrator, the execution is mainly carried out in collaboration with them. The transition of pension administration from Achmea Pensioenservices to Appel in the coming period will be an extra intensive period before the transition to the new pension system. We have previously informed you why we find this transition necessary.

Implementation plan for the transition on January 1, 2026
Ultimately, the determination of how the pension fund is in control during the period until the transition to the new pension contract, the merging of the already accrued pensions, and in the period in which the new pension scheme is implemented will be recorded in the implementation plan. This plan and the associated communication plan will be sent for approval to the supervisors, DNB and AFM, respectively. This is expected to happen in the summer. We assume that the transition to the new pension system will take place on January 1, 2026.