“We now know the answer to the question: Will it work?”

A strong start is half the battle. That certainly seems to be the case now that the first two pension fund clients of APG have transitioned to the new pension system. On January 1, 2026, the three larger funds bpfBOUW, Pensioenfonds Schoonmaak, and SPW will follow suit. Rob Bakker, who oversees the technical side of the transition as Program Manager at APG, discusses the preparations for this next major transition.

It was a deliberate choice to start with PWRI and PPF APG, Bakker explains. “Not only because these are smaller funds, but also because they have relatively simple pension schemes with only a limited number of exceptions. On January 1, 2026, we will be dealing with a significantly larger number of participants and far more ‘data fields’—in other words, information—that needs to be transferred. Two months ago, around 201,000 participants in the Netherlands—200,000 of whom were from APG’s two pension fund clients—transitioned to the new system. In just over ten months, that number will exceed one million.”

A standardized transition process
The groundwork laid for PWRI and PPF APG was designed to be reusable, so there is no need to reinvent the wheel. “The so-called transition process, which transfers data from the old system to the new policy and administration system, has proven to be an effective link between all the involved systems: from the source system to the data core, from the data core to Data eXcellence (DX, the technology behind the data migration, ed.), and back to the data core, ultimately ending in the policy and administration system of Festina Finance.”

According to Bakker, this process saw surprisingly few errors, with over 99.9% of participants successfully migrated through automation. This same process will be used for transferring the data of bpfBOUW, SPW, and Pensioenfonds Schoonmaak.

Bakker adds, “We are currently evaluating the transition of PWRI and PPF APG, so there may still be some lessons to learn. However, one thing is already certain: the sheer volume of participants will require us to make technical adjustments in several areas to ensure that we can execute the necessary steps on time. At the same time, we are also preparing for the transition of our largest pension fund client, ABP, in 2027.”

Expanding services
In addition to preparing for the next funds to transition, some tasks still need to be completed for PWRI and PPF APG. For example, not all services will be fully operational in the first quarter of 2025.

A pension fund, for instance, requests an annual “proof of life” from participants living abroad who are not listed in the Dutch Personal Records Database (BRP). This is used to verify whether they are still entitled to their pension benefits. The next check will take place in the fall, at which point this process must be fully integrated into the new systems.

A similar situation applies to the distribution of the Uniform Pension Overview (UPO). The statement sent out this year reflects 2024 and is still based on the old pension regulations. “In 2026, we will send out the first UPO based on the renewed system. We will begin this process for PWRI and PPF APG in the fourth quarter of this year.” This means that even after funds transitioned on January 1, 2025, their services will continue to be expanded.

Partnerships with external parties
The transition has led to new and more intensive collaborations within APG, as well as with external partners. According to Bakker, this requires flexibility. “It’s about knowing when to take a strict approach to keep processes sharp—a ‘blue shirt’ mindset, when to push forward decisively— a ‘red shirt’ mindset, and when to prioritize collaboration above all else—a ‘green shirt’ mindset. That’s part of managing large-scale projects like this.”

“With our external suppliers, particularly DX and Festina Finance, we have clear agreements in place. Our relationship with them is a partnership, not just a standard client-supplier relationship. It is crucial that we communicate why something is urgent, maintain clear points of contact, and establish solid contracts. This requires time and attention because these suppliers play a critical role at key moments. They have supported us exceptionally well when it mattered most.”

Bakker cites an example: “Festina Finance had to implement multiple ‘hot fixes’ within a single week. Thanks to their efforts, we were able to adjust the software in a controlled and reliable manner without having to manually alter data. If you make manual changes along the way, you risk long-term issues—and we want to avoid that.”

A new phase
According to Bakker, the transition has now entered a new phase. “Now that we are live, we no longer have the freedom to wipe the slate clean and start over whenever we encounter an issue. The system, containing all data on pension entitlements, must remain stable, as the funds rely on it for their services.

We have accounted for this, however. Currently, around 60-70% of the essential services we will need for ABP in 2027 are already in place. Once bpfBOUW, SPW, and Pensioenfonds Schoonmaak transition, that figure may reach 80%. By then, these services will have withstood the test of time—incidents will have occurred and been resolved, gradually reducing the remaining risks.”

Rob Bakker concludes, “The fact that we are now live is the most important milestone. We are learning how to work with aspects we couldn’t always fully test in advance. And when challenges arise, we address them in a thorough and structured manner—benefiting not just us, but also the funds that will transition next. The key indicator of success for the transition of the next funds is that the vast majority of their services are already operational. The question we had at the outset—will it work?—has now been answered.”