Several Dutch pension funds, including Beroepspensioenfonds Loodsen and APG-managed funds, have started making higher payments to 65,000 pensioners under the new system, despite industry concerns over amendments to the Future Pensions Act (Wtp).

The new system allows funds to adjust investments based on age, helping increase pensions. For older individuals, investments are made cautiously to protect savings, while for younger individuals, investments are riskier but offer higher potential returns over time.

As a result, pension funds can operate with a smaller buffer, part of which is divided among participants. Because the exact amounts weren't available in January, higher payments, including back payments for January, have been distributed in February.

This change will also see 135,000 workers have online access to their pension data.

APG chairman of the board, Annette Mosman, expressed her satisfaction with the first rollout. She said: "I am extremely happy and proud that our first fund clients have reached the finish line of this pension marathon.”

Adding to this, Dutch Federation of Pension Funds chairman, Ger Jaarsma, commented: "The transition to the new system was an intensive process and went without major problems. The fact that it has succeeded in this way provides confidence for the next pension funds that will switch in the coming years."

Beroepspensioenfonds Loodsen administrative office director, Rajesh Grobbe, said: "We are proud to have achieved our transition objectives and have been able to increase benefits by about 8 per cent."

Earlier this month, several Dutch pension funds voiced concerns about amendments to the Wtp, which were proposed in February by the political parties New Social Contract (NSC) and the Farmer-Citizen Movement (BBB).

In a "critical response," funds including PFZW, ABP, Bouw, PME, and PMT warned that the amendments could undermine the pension system and lead to €18bn in additional costs.

A main point of disagreement was the NSC and BBB's proposal for a mandatory referendum before pension schemes could transition, requiring at least 50 per cent approval and a 30 per cent voter turnout.

The pension funds warned that this could create two parallel systems, weakening collective strength and diminishing investment returns.

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