10 steps for a successful WTP transition for pension insurers

The Future of Pensions Act (Wet toekomst pensioenen, WTP) marks a turning point in the Dutch pension market. For pension insurers, it represents not only a legal obligation but also an opportunity to modernize operations, strengthen client focus, and capture commercial potential. Board members and pension consultants play a key role: the choices made today will determine the success of the transition and tomorrow’s competitive position.  

As a leading provider of SaaS based pension administration solutions – and one of the first to implement integrated WTP functionality in the Dutch pension market, Keylane has developed the following 10-step guideline for a successful WTP transition implementation in pension insurers’ pension administration.  It’s a high-level approach underlined with examples and therefore not meant to be comprehensive. 

1  Organize an integrated approach
Engage Product Management, Legal, Commercial, Client Services, and Back Office from the outset. Make sure everyone is strategically aligned and understands the definition of a transition to a new fiscal frame and what does this new Defined Contribution product look like? E.g. it can be a transition with respecting rights for participants (eerbiedigende werking) and therefore less impact, however still all participants will be affected by the transition. Or the transition is based on a new flat rate scheme for all participants. How does your company want clients to experience these different levels of transition and which processes are affected? A broad, coordinated approach ensures an efficient and consistent transition. 

2  Establish a standard WTP agreement transition framework
Develop a robust base design that can be widely applied. This framework makes sure different types of clients; e.g. clients with single or multiple agreements, can easily make the transition. This provides clarity to clients and advisors while preventing executional complexity. 

3  Keep customization under control
Determine what customization remains permissible under the WTP and design processes for its (limited) manual handling. 

4  Map the impact on processes
Beyond the already implemented new business and contract renewals, a new transition flow arises for existing clients moving to WTP schemes. Identify this process clearly and define the required adjustments in already implemented new business and contract renewal processes, systems and governance.  At the same time, evaluate and align the New Business process with the transitional process. This prevents a dual-track approach and ensures that clients, participants and advisors are served consistently and efficiently.    

5  Automate wherever possible
Aim for a highly automated transition process with fixed communication moments for advisors, clients and their participants. E.g. transitional communication on participant’s capital before and after transition can be planned: the creation of a document template, UCM requests, as well as the availability of the data on the participant portal. This reduces operational risk and improves client satisfaction.

6  Make it a smooth ride 
For advisors, the process should be simple and intuitive. Make sure all the known client information is directly available for the advisors. E.g. enable a quotation process for the advisor which is based on the existing product and participant population so there is only a limited need to include client information themselves.  The existing DC agreement choices are reused, meaning the choices which can be continued under the new fiscal regime. Of course, it would still be possible to change any of these in the WTP quotation process together with the advisor. Now, it’s only needed to think about what has changed under WTP e.g. the continuation of premium contribution of (voluntary additional) partner pension, ANW pension and orphan’s pension for three to six months after resignment. 

7  Establish a functional framework for transitioning policies
Make sure the functional solution for transitioning policies from the current client’s agreement to a WTP client’s agreement has a clear structure for all possible policy covers. E.g. the build-up covers from the current policy will be continued under the WTP agreement in a paid-up state and risk covers will be ended. From a functional perspective it is desired to keep all the cover data together on one policy.  

8  Secure policy values
Ensure that the current policy value is continued when the policy is transitioned to the new fiscal regime, for example by continuing the current portfolio.

9  Decide on how to handle the differences between fiscal regimes  
Map current policies’ situations and determine what should happen if this is no longer possible under the WTP. E.g. participant choices made on premium redistribution after the retirement age which is in the WTP scheme only allowed 15 years before the state retirement age (AOW leeftijd).  The participants need to be informed if this option is no longer possible. 

10  Keep it manageable
Your clients need to easily manage the WTP agreement next to their current agreement. E.g. make sure the administration can handle changes for employments under different fiscal regimes within the same time frame.  

Conclusion: The WTP transition requires more than technical adjustments: it is a strategic challenge that involves product design, client experience, and operational efficiency. Pension insurers that seize this transition as an opportunity for innovation will strengthen their market position and actively contribute to a sustainable pension system.  

More information

Want to know how Keylane can support your transition to WTP? Please contact Managing Consultant Marit Lasschuit at Marit.Lasschuit@keylane.com