The Netherlands’ Senate passed the Future Pensions Act in May 2023, with the legislation entering into force just two months later in July. As a result, pension funds are putting together their Wet Toekomst Pensioenen (WTP Future Pensions Act) implementation and communication plans and preparing for a wholesale change in the way the country saves for its pensions.
A major consideration for pension providers is how they will meet their obligation to communicate the changes to beneficiaries who are eager to understand how they will be affected by the change. This article provides insight into the new act, the timeline to implement it, the requirements for pension funds and how to execute a communications strategy that meets the approval of Autoriteit Financiële Markten (AFM).
Overview of Wet Toekomst Pensioenen (WTP)
The main ways in which the pension system will change as a result of the WTP include:
- Replacing defined benefit schemes with two new types of defined contribution schemes:
- Solidarity premium scheme
- Flexible premium scheme
- Contributions become age-independent, meaning that everyone will pay an equal premium percentage
- All accrued pension contributions will be transferred to a new scheme unless this leads to significant disadvantage to groups of beneficiaries
- The survivors’ pension becomes independent of length of service and a partner’s pension in the event of death before the date of retirement is now allowed on a risk basis.
The reasoning behind the changes is that recent low interest rates have seen little growth in pensions. This new system allows beneficiaries to understand exactly how much they are investing and to invest solely for themselves, rather than the young contributing directly to the old as it is at present.
The new regime will allow pensions to grow more quickly in good times, but there could be challenges when the economy is less prosperous. However, there is a buffer in place to prevent the latter from causing catastrophic damage.
As this is such a major shift that affects all citizens, pension funds are obligated to create a communication plan to answer questions from their beneficiaries and to keep them informed of the changes ahead.
Wet Toekomst Pensioenen (WTP) timeline
This is the timeline for adhering to WTP:
- 1 January 2024 – statutory minimum age for starting a pension scheme reduces from 21 to 18
- 1 January 2025 – employment conditions agreements must be in place and transition plans must be submitted to pension providers
- 1 July 2025 –pension providers must prepare implementation and communication plans by this date based on the transition plan they received.
- 1 January 2028 – new schemes and transition agreements must be implemented.
Between now and the final deadline on 1 January 2028, there are three main stages that pension funds, along with social partners and other stakeholders, must work through:
- Social partners consult with stakeholders to create employment conditions agreements and implement this into a transition plan
- The pension provider takes these suggestions and plans to implement them
- This implementation plan is put into action ahead of 2028.
Communication requirements for pension funds
As this process incorporates a host of significant changes to the way that citizens save for their retirement, it is essential that there is clear communication between pension funds and their beneficiaries.
This is how the act makes provision for the manner in which this engagement occurs:
| Article | What it means |
| 150 | Pension funds must submit in writing a communication plan for how they will inform beneficiaries of the changes being made and the consequences of those changes. This plan should communicate the outcomes for their pensions of a variety of scenarios that could occur as a result of the changes. This means illustrating optimistic, pessimistic and expected scenarios. It should also provide general information about other relevant information regarding the transition. |
| 48a | Pension providers must be transparent in the manner in which they engage with beneficiaries so that beneficiaries can make clear, balanced and informed decisions about the product that they choose for their future. The choice environment must inform them of the risks and opportunities with the variety of pensions. |
How to execute your communication strategy
1. Identify your audience
AFM cites identifying the target groups you wish to talk to as being one of the five priorities when developing a communication plan. You are likely to have many different types of beneficiaries and they will not all be responsive to the same type of outreach.
The official advice is to segment your beneficiaries into separate target groups and tailor your approach to each of these groups accordingly.
At the very basic level, AFM recommends segmenting the groups by age and status within the pension plan (i.e., paying in, retired, left the scheme and so on). However, you can also divide by work role, industry and any other distinction you think might make your comms strategy meet the needs of all your beneficiaries.
2. Craft key messages
Once you know who you are talking to, you can consider how to engage them in an effective manner. Each target group will need to hear different information about what WTP means to them and that requires you to arrive at key messaging for each of your groups.
Consider what they need to know about the act right now and what is going to change for them in the short, middle and long terms. This includes talking about the options available, changes to how they control their pensions and any other relevant details.
3. Choose the channels
The channels that you use for outreach will differ depending on the target group that you are engaging. For example, older citizens might prefer physical media sent through the mail, whilst younger participants would be more receptive to social media messaging.
Consider the ways in which your target groups communicate with each other or how they receive information in other aspects of their lives. For instance, a target group of beneficiaries aged between 25 and 40 will be mainly tech-savvy and likely to use digital communications tools in their everyday lives, as well as in their work environment.
They are used to remote meetings and online conferences and presentations as regular methods of transferring information and knowledge, aided by the convenience of being able to attend from wherever they are on a choice of devices.
Live webcasts and webinars are a comfortable and familiar solution for many in this age group and can provide an engaging way to pass on important details and interact with viewers.
4. Develop content
You should have a strategy to help you produce the right content for each of your channels and target groups. Tailor it to both the channel that you are using and the audience you are addressing.
Generally speaking, a visual-first approach is a good idea, with infographics and other tools helping you to deliver your message. Still, some might prefer comprehensive, long-form text, whilst others could engage more with a podcast, social media posts or any other form of communication. For many, video is an effective tool, with respondents to a recent survey confirming they are 75% more likely to watch a video than read a document, email or online article.
The idea is to reach all of your beneficiaries and to keep them up to date with all the details that they need. That means developing content that piques their interest and answers their questions. Think about what is important to your audience and address that. Canvas opinions, open up a platform for queries and get an idea for what people want to know, using that to inform your content creation.
Use all the tools at your disposal, including harnessing artificial intelligence.
5. Set a timeline
Use the transition timeline to help you plot when you are going to send out important information to your audience. Think about starting with an overview of the most pressing information and then breaking it down into relevant sections and following up with them.
You do have a duty to ensure all beneficiaries understand the new regime, but you do not want to flood them with too much information at once. Pension funds are under an obligation to both reach all participants and do so in a way that fully informs them. If they feel overloaded, they are less likely to digest the important information you provide.
6. Implement plan and gather feedback
Once your plan is in action, it is important to understand how well it is working and whether it is worth continuing on your planned trajectory.
You can begin to tell early on how the outreach is going. With social media, are people actually engaging with the posts? Are they sharing them? Are the comments relevant? Do they follow the links to find more information?
With physical mailouts, you can tell they have been delivered, but not whether someone has read and understood them. Ask for feedback from these beneficiaries so you can understand whether you should maintain this approach or move resources elsewhere.
7. Report and analyse
Use the tools you have to show evidence of your outreach and its effectiveness. For example, with a webcast using Company Webcast, you can use the rigorous reporting tool to understand exactly how your audience has responded to the campaign. This forms part of the proof you need to submit to AFM. It helps you show that you have done all you can to share with your participants the information they need to understand.
Keep thorough records of all your efforts across each of the media you use for outreach. And show how you adjusted your course of action based on the analysis of your plan.
What should pension funds report in terms of communication?
| Reporting item | Explanation |
| Documentation of communication efforts | Keep records of what was communicated and how, including the dates and channels used in the communication. |
| Beneficiary reach | Collect data showing how many beneficiaries you engaged in your plan. |
| Beneficiary engagement | Data regarding how they interacted with the communications, including length of time on a webcast or webinar, interactions through engagement tools and so on. |
| Feedback summary and follow-up | Round up the feedback you received from participants, including interactions in Q&A sessions, and the outcomes, including how you adapted your strategy accordingly. |
| Record retention | Provide evidence that you will keep the communication records for a length of time in accordance with the law. |
FAQ
Who needs to create a WTP transition plan?
Pension funds and pension administration organisations are required to develop a WTP implementation plan as well as a communication plan for how they will inform beneficiaries of that transition.
What should a WTP transition plan include?
The plan should detail how the pension fund will adapt to the new law, manage accrued pension rights and comply with equal treatment legislation. It must also include a communication plan.
Why is a communication strategy important for the WTP?
Effective communication ensures that beneficiaries understand the changes to their pensions and how these will affect their future benefits. It is also a legal obligation under the act.
Conclusion
The Wet Toekomst Pensioenen (WTP) communication plan that pension funds put in place is essential for making this major change in pensions run as smoothly as possible. All providers must carry it out in accordance with the timeline as set out in the law and, importantly, show that they have done all they can to inform beneficiaries of the changes they will face and the reasons behind the adjustments. For your digitally savvy 25-40 year-old beneficiaries, a series of webcasts is an effective method to both reach and engage them.
Company Webcast’s expert team is on hand to carry out the full range of tasks required for the lifecycle of your webcasts, delivering a powerful user experience. You can take advantage of professional-level equipment either in our Amsterdam or Rotterdam studios, or at a venue of your choosing. In addition, you gain access to in-depth reporting tools and expert support to help you through the transition period effectively. Request a demo for your organisation today.
References and further reading
- Hybrid event planning
- Virtual and hybrid events
- Create a webinar from scratch
- Webinar statistics and best practices
- Ultimate webinar guide
