Dutch fund ABP wins approval to switch to new pension system
The Dutch central bank gave its approval to a request from pension fund ABP to convert to the country's new, renewed pension scheme. The civil servants' fund is the largest in the Netherlands, and stands among the five largest in the world, according to 2025 data on managed assets. It intends to make the switch on January 1.
The financial situation at the start of the year will largely determine how much money ABP can then distribute. ABP held a funding ratio of 126.6 percent by the end of May, meaning it has 126.60 euros on hand for every 100 euros retirees currently receive, or will receive.
"The higher the funding ratio, the more there is to distribute," according ABP Pensions Executive Director Yolanda Verdonk-van Lokven. However, when the funding ratio is lower, then there is less available cash to distribute.
Recently, De Nederlandsche Bank (DNB) completed its review of the documentation submitted by ABP, which represents 3.2 million pension participants in the country. As the country's central bank, the DNB is tasked with guaranteeing that all participants see a balanced outcome when funds make the switch from the current pension system.
The DNB's decision was an "important milestone" that culminated after years of work with relevant stakeholders and officials, Verdonk-van Lokven said. ABP will continue working on the preparations for the transition to the renewed pension scheme in less than six months' time.
Later this month, ABP will begin sending out provisional statements containing estimates to the participants about their position and the renewed pension. This will be handled in phases up through November.
Other major pension funds such as the country's second largest, PFZW, as well as PMT and bpfBOUW have already switched to the new system. At these funds, pensions could increase significantly due to the transition.
