Stichting Beroepspensioenfonds Loodsen, the Dutch pension fund for pilots, has become the first scheme to receive approval from De Nederlandsche Bank (DNB) to transition to the new Dutch pension system.

DNB’s approval means the scheme can convert existing pension entitlements and rights to the new pension system and the current scheme will cease to exist on 31 December 2024. The new scheme will commence from 1 January 2025.

From that moment on, members’ pensions will be accrued in the form of a personal pension fund. Accrued pension benefit up to and including 31 December 2024 will be converted into the new pension fund.

The scheme now intends to “work intensively” with its outsourcing partners Blue Sky Group, BlackRock, Northern Trust and Sprenkels to “carefully prepare” the transition to the new pension system.

The pension fund said it still has to implement a number of regulations issued by DNB but it is making “rapid progress” with this. It also stressed that it is dependent on developments in the financial markets. For example, the transition plan stipulates that the Pension Scheme Transition Working Group will meet again if the coverage ratio falls outside the bandwidth of 110 per cent and 153 per cent.

“With the current coverage ratio of approximately 125 per cent and the 100 per cent interest rate cover of our obligations, we consider it likely that we will remain within this bandwidth until the transition moment. We are therefore confident that we will successfully complete the remaining work,” the pension fund stated.

As part of its preparation, it will send members a letter at the end of November with an initial forecast of their pension in the new scheme. Active members will be given preliminary calculations that provides an overview of their future pension, which is based on things going bas, as planned, and well.

Letters sent to pensioners will include an indication of the benefit in the new pension scheme. Based on the current funding ratio (around 125 per cent), benefits for retirees are predicted to increase.

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