Pension providers welcome deadline extension for Dutch pension system
Pension providers APG and TKP have expressed their support for the decision to extend the deadline for pension funds to transition to the new defined contribution (DC) pension system in the Netherlands. The deadline has been moved from January 1, 2027, to January 1, 2028, providing additional time for the transition.
Pension providers APG and TKP have expressed their support for the decision to extend the deadline for pension funds to transition to the new defined contribution (DC) pension system in the Netherlands. The deadline has been moved from January 1, 2027, to January 1, 2028, providing additional time for the transition.
While the pension admin providers appreciate the breathing space, they emphasize that the extra year should not be misused as an excuse for delaying decision-making by social partners.
The extension was granted in response to demands from senators, and it has been welcomed by pension providers who view it as a wise decision. Wim Koeleman, the program manager for pension transition at APG, the largest pension provider in the country, stated that meeting the original 2027 deadline would have been challenging for all their clients. Meanwhile, TKP, another admin provider, believes it can complete the transition before 2027 but sees the additional year as a beneficial cushion for its pension fund clients to delay if necessary.
Pension providers stress that the extended timeframe should not lead to further delays in the decision-making process. Social partners, who are responsible for choosing between solidarity and flexible arrangements and deciding whether to transition existing defined benefit (DB) accruals to the new DC system, are urged to proceed without unnecessary postponements. The postponement is seen as an opportunity for pension funds to assess the implementation process and determine if the transition requires the extra time, rather than assuming it as a default option.
While social partners initially preferred to maintain the 2027 deadline, they can accept the decision for an additional year. In a letter sent the previous day, they expressed their belief that the original deadline was feasible and emphasized the importance of avoiding unnecessary delays. Although their wish was ignored, they recognize the practicality of allowing more time for the transition. The Pension Federation, which represents the pension funds, did not request additional time but acknowledged its potential benefits, as different funds can now transition at different times instead of all at once.
The Dutch regulator, DNB, stated its understanding of the decision and urged all parties involved to energetically engage in the transition process. The postponement offers greater flexibility, but it is important for stakeholders to make progress efficiently. Despite the extension, the overall sentiment among pension providers and social partners is to maintain momentum and ensure that the new DC system is successfully implemented as an improvement over the previous framework.
