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Switching to the new pension is complex and time-consuming

Twenty-five pension funds wanted to switch to the new pension on 1 January 2025, but discovered that the process involved in this is extremely complex and time-consuming.  Ultimately, just three of those 25 funds actually made the switch to the new pension on 1 January 2025. The other funds postponed the date.

In our case, the process meant getting all 18 employers affiliated with Pensioenfonds PDN and all the unions involved to agree on the content of the new pension, as well as how the old pension will be transferred to the new pension. This also involved consulting the VDP and the ranks of the unions.

Then began the decision-making process at Pensioenfonds PDN, covering matters such as the new financial structure, how the new pension scheme is to be implemented, and changes to the pension administration. After this, De Nederlandsche Bank (DNB) has to assess whether the whole process is being handled in a meticulous, balanced way.

So, by November 2024, we were already at an advanced stage in the process.

Learning from the pioneers

However, in November 2024, DNB shared its experiences of the process as undertaken by the pioneers with the other pension funds. At the same time, DNB also issued further guidelines which the transition to the new pension must follow. In addition, they shed light on how long their assessment takes before they can consent to the pension fund Board’s decisions on the transition to the new pension.

The more detailed guidelines issued by DNB meant, among other things, that the social partners had to make additions to the transition plan they had previously adopted before Pensioenfonds PDN could continue with its decision-making. We received these additions on 14 March 2025.
Yet the Board, the Accountability Council and the Supervisory Board of PDN had not had enough time to review all the decisions already made and prepared in light of the new guidelines and to make the remaining decisions.

On top of this, DNB notified pension funds that they should allow for a lead time of at least one year for DNB to assess their files.

Care over speed

In light of all of this, it is both impossible and irresponsible to adhere to the original transition date. The Board believes this would seriously jeopardise a careful transition to the new pension. In the interests of everyone who has a pension with Pensioenfonds PDN, the transition will now take place on 1 January 2027. The Board believes that it is more important to handle the transition to the new pension with care rather than speed. After all, people’s income, both now and in future, is at stake.

Moreover, Pensioenfonds PDN is not the only fund to have reached this conclusion. A number of other funds that had been aiming for a transition date of 1 January 2026 have postponed this date by one year.

What you can expect from us over the coming month

We’ll keep you updated on developments regarding the transition to the new pension via our website and newsletters.

What does the postponement of the transition to the new pension mean for you?

There will be no changes to your pension until 1 January 2027. On 1 January 2027, you will switch to the new pension.

At that point, the funding level is important, as this reveals whether Pensioenfonds PDN has more assets than needed for a balanced transition to the new pension. If the funding level is higher than 109% (a buffer of more than 9%), PDN can distribute the surplus among everyone who has a pension with the fund. Read more about the importance of the funding level and how any buffer is distributed here.

For pensioners, the distribution of any buffer translates directly into higher pension benefit payments. Postponing the transition date to the new pension means that any increase to their pension, and by how much, will remain uncertain for longer.

Pensioenfonds PDN is doing two things to limit this uncertainty.

1. Since the funding level is satisfactory at present, the Board has adjusted the investment policy. This ensures that the funding level changes less in line with the economy, reducing the likelihood of the funding level being too low at the time of the transition to the new pension. Read here how the Board did this.
2. Since it will take longer before any buffer can be distributed, the Board of Pensioenfonds PDN will be looking into the possibility of making the fund’s indexation policy more flexible. The Board is favourably disposed towards awarding full indexation for 2025 if the funding level is good, which everyone could then benefit from on 1 January 2026.
   However, the Board must strike a balance between, on the one hand, endeavouring to maintain the pensions’ purchasing power and, on the other, achieving a funding level on the transition date that enables a fair and balanced transition to the new pension for all employees, former employees and pensioners.