This is the first of a series in which we question ETS members about pension communications and pension tracking. Today we speak with Theo van Kessel, from APG. APG is the largest pension service provider in the EU. It provides pension administration and asset management to several pension funds. Within APG, Theo is in charge of the transition to the new pension system. Theo is also an ETS Board Member.
Theo, The Netherlands is in the midst of a major pension reform. What does that require from APG in terms of pension communications?
To properly determine the new pension situation of our participants, it is essential for us to have good quality data on them. APG is working hard to bring the data quality to the highest standards.
Furthermore, APG is building a completely new personal portal to provide participants with even better information. Just like in the current system, participants will have some choices within the new pension scheme. Pension funds are obliged to offer choice guidance. APG has therefore formulated new principles regarding the information provision to participants - including on consistency, language, risks and showing the consequences of choices - which will be implemented in the online personal portal.
There is also a clearer focus on providing adequate context to the information offered. For example, we consider the broader financial situation of the participant. We offer to leave options open for as long as possible. And we check the consistency of the information provided by the participant.
How do you include participants in the transition and change from a DB to a more individual pension scheme?
A great deal of attention is paid to communication with participants. It should be clear for participants what the transition means for them. You need to explain to participants the core of the new scheme, show them what will change for them, address any concerns they may have, and give them the most concrete and honest picture of their new situation.
For example, participants receive the (legally required) Transition Overview, but we also set up a Personal Online Transition Tool in which all personal information is displayed in a layered manner.
How is APG using technology to communicate with hard-to-reach participants?
APG deploys modern technology in various ways. For example, APG is deploying chatbots to quickly answer participants' questions. These chatbots are becoming ever smarter and can be expanded with new knowledge more quickly. They are therefore being used more and more widely.
For many participants, Dutch is not their native language. APG is currently working on an AI-based app that helps participants translate the often difficult pension texts into their native language (if that is not Dutch). Moreover, many people have difficulty to understand information on pension. The tool helps with that as well. It tries to give more comprehensible and clear explanations of selected texts.
What drives you to participate in the ETS?
Many of our pension funds have participants who do not live in the Netherlands (anymore). This is because they are migrant workers. Because they have an international career. Or they live just across the border, like a number of my colleagues at APG. For those people, getting an overall picture of their pension situation can be complicated and the ETS is a godsend.
It is also important for APG to be actively involved in European (political) developments around pensions. But to be perfectly honest, I also find it fun and inspiring to work on such a meaningful and ambitious project in an international context.