Like PPF APG, PWRI was one of the two APG pension fund clients that transitioned to the renewed pension system on January 1. How was the preparation for participant questions handled? And what does this mean for the larger pension funds that have yet to make the switch? A conversation with Maurice Berende, Manager of Pension Operations at APG.
Published on:
20 February 2025
In a nutshell
• So far, the number of participant questions about the new pension system has been manageable.
• A structured approach was put in place before the transition to closely monitor developments.
• The experiences gained now will be valuable when the larger pension fund clients transition to the new system.
Everything APG has developed over the past few years regarding the renewed pension system ultimately lands with Maurice Berende’s 18-member team. “This includes second-line communication with clients and the processing of retirement, survivor, and disability pensions. Another crucial process is sending out the start and stop letters, which participants receive when they join a pension fund or when their participation ends.”
Did you work with scenarios to prepare for participant questions about the transition?
“We had contingency plans in place for pension processes and the IT landscape. These plans outlined when certain letters would be sent to participants, what checks needed to be performed, and how to detect potential issues.
Before the transition, we set up a structure to ensure that funds could transition as smoothly as possible and to proactively address any problems. Every day, a dedicated group of colleagues from across the organization monitors progress. Additionally, we doubled the capacity of our back office, which handles more complex participant inquiries, for the first few months of this year. We also expanded our front office and closely monitor social media to respond promptly when needed.”
At APG, the transition is a 24/7 operation. How do participants perceive it?
“The participants who call us are mainly concerned about whether they will continue receiving their pension payments each month. The pension amount paid in January was the same as in December. In February, it will be higher because participants will receive the so-called transition bonus—an extra amount distributed from a fund’s reserves when the funding ratio exceeds 100%.
The fact that pension payments will fluctuate in the first few months may lead to some phone calls, but it’s not like we’re getting flooded with them. Most inquiries are handled by our front office. The more complex questions are escalated to my team, but so far, we haven’t received any.”
I think we can be incredibly proud of what we’ve accomplished together
At the end of last year, so-called transition statements were sent out. That was the first time participants directly experienced the transition. Did it lead to increased call volume?
“Yes, we did receive extra calls at that time, partly because participants didn’t always understand the statement. It was a rather long letter with a lot of legally required information.”
In ten months, APG’s next three pension fund clients—bpfBOUW, SPW, and Pensioenfonds Schoonmaak—will transition. Are you sharing your experiences and lessons learned?
“Yes, we are sharing our insights both internally and within the broader pension sector. The contingency plans we used for the first two pension funds will also be used for the next transitions, largely under the guidance of the same colleagues. We are currently evaluating the lessons learned, and any conclusions will certainly be shared with the other funds.”
How have you experienced the past few months?
“If you don’t like dealing with challenges, this isn’t the job for you. That being said, I think we can be incredibly proud of what we’ve accomplished together. We have successfully transitioned from one pension system to another and implemented many new systems in the process. If the only downside is that there’s a bit of daily hassle, I’d say that’s more than manageable.
Beforehand, I told my team: starting January 1, we will need to be highly flexible in how we work. Processes will need constant adjustments, affecting when and where we work. It’s a tough challenge, but I still see smiling faces around me every day. That’s the strength of this team—we’re very close-knit. That’s what got us through this.
It also helps that the number of participants we transitioned—just over 200,000—is still manageable. If necessary, we can manually process certain cases, such as pension applications. That’s why we deliberately chose to transition a small and medium-sized fund first—the risks were still manageable.
Next, a fund like bpfBOUW, with one million participants, will transition. At that scale, everything must be fully automated and function flawlessly. That’s the advantage of going first: the mistakes we make now and the improvements we implement in our processes and systems will help ensure that the larger funds can also transition smoothly.”