Lessons from our Fin&Tonic: The Reality Behind the WTP

At our first Fin & Tonic event hosted in the Netherlands, the Future Pensions Act (WTP) took center stage. A panel of five pension experts gathered to discuss the challenges surrounding the implementation of the WTP. Their real-world experiences revealed that the transition to the new pension scheme is anything but straightforward. The audience resonated with the panel’s frustrations, leading to engaging conversations afterward.

Where do the parties stand now?

Our first question for the panel was clear: where is your organisation in the transition to the new pension system, and what are the main challenges?

Sabijn Timmers-Janssen, board member at the Rail & Public Transport Pension Fund, explained that the transition is a challenging process for her organisation. “Ideally, you wouldn’t want to switch to new ICT with a big bang, but given the significant change in the system, that’s likely what will happen.” The need to stabilize systems first is a challenge recognized by other funds as well.

Wim Koeleman, Director at APG, highlighted the scale of the program within his organisation:

Over 600 people are working on our Pension of Tomorrow program. It’s the largest WTP program in the Netherlands. With so many stakeholders, structure and clarity are essential to keep things on track

Mirjam Breekelmans, Director at Achmea Pension Services, pointed out the extra burden for multi-client administrators like APS and TKP. They manage multiple variants of the pension scheme: both the solidary and flexible premium schemes (SPR and FPR). “With multiple client groups and fund types like BPFs, OPFs, and APFs, we must implement all variations of the law, making it especially demanding for us. APS decided, in close collaboration with two ‘leading funds,’ to postpone implementation before the summer holidays.”

Complexity for Multi-Client Administrators

Frits Bart, Director of TKP Pension, added that the WTP implementation is not a linear process:

We’re dealing with many different, shifting timelines that are interconnected, which makes it extra challenging.

Like APG and Achmea, TKP is working on implementing a new administrative system to create a more stable, standardized way of working. “It’s a challenging journey,” says Bart, “especially considering that the path is still being torn up while you’re hard at work.”

Willing, Able, and Allowed

Wim Koeleman emphasized that the WTP discussion revolves around three key aspects: willing, able, and allowed. “Willing involves making the decision with the pension fund to move forward. Able refers to the internal analysis by the administrator: are we ready with everything to implement this? Allowed is the role of the regulator, which is quite strict and detailed.” Koeleman pointed out the mismatch between the timelines of the pension administrators and the regulator: “If you decide to move forward definitively by January 1, 2025, you actually need to make that decision by early October. But the DNB only issues a non-objection statement in November. This creates a tricky situation: you may be willing and able, but you don’t yet know if you’re allowed.”

Self-Administered Funds

Self-administered funds have their own dynamics within the WTP transition. These are relatively small organisations, focused on serving their specific groups optimally. “Now, as a smaller organisation, we’re confronted with a massive change program, and that puts a lot of pressure on the organisation,” says Marcel Verheul, board member of the ABN AMRO Pension Fund. His fund opted for a later transition to the new pension scheme on January 1, 2027. “We closely follow developments and can learn from others who are ahead.”

The Rail & Public Transport Pension Fund is one such leader, with a planned transition on January 1, 2026. “We had our data quality in order early on, but the scale of the transition has forced us to take a step back, partly due to the impact of IT system implementation,” says Timmers-Janssen:

The complexity of the decisions to be made is significant. We are choosing a careful and responsible path.

Communication: A Delicate Timing

Communicating with pension participants and clients is a key focus for all pension administrators. Koeleman emphasized that this must be done in phases: from high-level notifications to increasingly detailed information. “We need to inform our participants at the right time without overwhelming them with details too early. At the same time, we must ensure the information is clear and individualized when the transition is imminent. We have a playbook ready for two leading funds transitioning to the new system from January 1, 2025.”

Marcel Verheul added that self-administered funds like ABN AMRO face an additional challenge because they don’t have the experience of other clients to draw from.

We learn everything in-house, while large administrators like APG can learn from their leading funds. This also makes events like this Fin & Tonic so valuable, as they enable knowledge-sharing.

Pressure from the Regulator

The pressure on pension organisations to get everything in order is increasing. However, our guest of honor, Fieke van der Lecq, Government Commissioner for Pension Transitions, indicated that despite this pressure, there’s no reason to postpone the law:

The distribution of transitions is still manageable, so there’s no reason to extend the deadline.

Not everyone shared this optimism. Verheul pointed out the underestimation of the time needed to implement everything properly and to adequately inform both the pension funds and the regulator.

Bart expects a more prominent role from the DNB after the transition of the first leading funds. “The formal timing the regulator uses is understandable from a legal standpoint, but it puts significant pressure on organisations. I’m curious to see if the DNB will adjust this, perhaps through knowledge-sharing, so that all parties can learn from each other and transitions can proceed more efficiently.”

The Human Aspect: The Internal Workforce

What people tend to forget is that alongside the WTP implementation, the daily operations of pension administrators continue. A large group of employees isn’t yet involved in the WTP transition, as they are busy serving clients every day. “People sometimes think you have four years to prepare, but in the meantime, we also have to meet our existing obligations,” Koeleman clarifies. “Moreover, this transition adds to other challenges the sector faces, such as inflation compensation, data quality, and more.”

“Just like communication with clients and participants, preparing employees is also about timing,” adds Breekelmans:

You shouldn’t start too early, so it doesn’t feel irrelevant to them. But you must ensure they are adequately informed in time.

Negative Perception

Finally, it was noted that some funds have been forced to postpone, which unfortunately doesn’t paint a positive picture of the sector. It’s clear that the WTP implementation places a significant burden on pension administrators, with time pressure and changing regulations adding extra strain to organisations.

Timmers-Janssen emphasized the importance of a stable regulatory framework, allowing organisations to focus entirely on executing their plans. “Such complex transformation processes require a highly structured approach and solid management focused on execution. But that can only happen when the playing field is definitive. We hope that not too much will change from now on so that we can move forward with our current plans.”

Conclusion

The WTP transition is a huge challenge for the pension sector, but our panel indicated that it can be a success with the right collaboration and timing. This Fin & Tonic session once again underscored the importance of knowledge-sharing. Despite the pressure and complexity, there was a sense of unity and shared responsibility among the attendees. Afterward, there were still plenty of discussions and experience exchanges. “I’m heading home inspired and re-energized,” one participant noted.