Dutch pension fund PMT has completed the first step towards the mandate shift for the pension administration of its members to a joint pension management company within PGGM pension management.

The pension fund announced that the transfer of 1.4 million pensions to the new administration platform NPS MAP has been successful.

In May 2023, PMT, PGGM and MN announced they were investigating the possibility of a joint pension management company, where PMT would shift its mandate for pension administration to a joint organisation within PGGM pension management.

With effect from 1 July 2024, PMT will shift its mandate for pension management from MN to PGGM.

MN’s activities will then be transferred to PGGM.

In the front end of the services, the chain for PMT is largely the chain that has been set up under the responsibility of MN and will remain so “for the time being”.

The merger of pension management activities is the follow-up to the previously initiated joint development of an administration platform for pension management.

The PGGM system MAP was made suitable for PMT's pension administration.

PMT stated that PGGM has all the IT-related innovation (AI, digitisation, data science) and capabilities that can be found at other major financial institutions.

Now that the transfer of the administration has been successful, the actual shift of the mandate can take place on 1 July.

“This innovation guarantees the continuity of services to participants and employers and ensures a future-proof system in preparation for the new pension system,” said PMT employee chair, Eunice Bronswijk.

“In January, we collected premiums from employers for the first time and paid out pensions to our retirees for the first time without any significant problems.

“It was super exciting and I'm very happy that it went well. Our top priority was to ensure a smooth transition, because we understand that pensions are an essential component of the income and wealth accumulation of more than a million households.”

PMT employer chair, Terry Troost, added: “With this transition and integration of such an enormous amount of data, we show that we as a sector are capable of solving major issues that affect the provision of services to large numbers of people.

“We can see this transition as a 'general one' for the transition in the context of the Future Pensions Act. Critics often claim that all kinds of things (ICT-technically) will go wrong. This operation shows that it is possible and that the sector can handle it.”

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