The €1.7 Trillion Pension Rewrite: What Actuaries Can Learn from the Netherlands
The Netherlands provides Europe's most prominent real-time case study. The Future of Pensions Act, in force since 1 July 2023, shifts workplace pensions from defined benefit to defined contribution. As Marit Kosmeijer explained in the YAI Connect session "Moving Europe's Largest DB System to DC", the reform also abolishes the traditional average-contribution mechanism, creates clearer links to personal pension accounts and allows collective risk-sharing through a solidarity buffer or risk-sharing reserve. The transition must be completed by 1 January 2028.
The scale is exceptional. At 30 June 2026, Dutch pension funds managed €1.72 trillion. Thirty-four funds, together holding €589 billion, had already converted to the new framework; €1.131 trillion remained with funds still operating under the old Financial Supervision Framework. By 1 July, DNB reported that 38 pension funds and four ring-fenced funds had converted, with well over 100 still expected to follow.
For actuaries, the transition is far more than a change in valuation methodology. DNB states that collectively accrued pension capital must be transferred to individual pension accounts through a process that is transparent, controlled and careful, with members' interests represented in a balanced way. Robust calculations, data quality and IT systems are therefore central to the conversion. The new system also links investment risk more explicitly to age and risk appetite, while members need to understand that projected pensions can rise or fall with investment performance.
Communication has consequently become part of the technical challenge. In February 2026, the Dutch AFM reported that 63% of the 24 most recently reviewed transition communication plans did not state the calculation date for the participant data used in the projected transition statement. The supervisor expects communication to be treated as a core process, embedded in governance and decision-making and evaluated regularly.
The Dutch reform therefore offers a broader career lesson. Moving from DB to DC does not reduce the need for actuarial expertise; it changes where that expertise creates value. Transition modelling, intergenerational fairness, investment and risk analysis, data governance, IT controls and clear member communication are becoming increasingly interconnected. For actuaries across Europe, the Netherlands shows what pension work can look like when technical judgement shifts from maintaining a system to redesigning it.
The full YAI Connect session with Marit Kosmeijer is available on actuview.
Sources
- European Insurance and Occupational Pensions Authority (EIOPA), “EIOPA’s risk dashboard for occupational pension funds highlights persistent market risks amid geopolitically complex environment”.
- European Insurance and Occupational Pensions Authority (EIOPA), “EIOPA’s risk dashboard for occupational pension funds flags market concerns as geopolitical tensions persist”.
- De Nederlandsche Bank (DNB), “Pension transition and pension fund funding ratios – 2026Q2”.
- De Nederlandsche Bank (DNB), “Towards the new pension system”.
- Autoriteit Financiële Markten (AFM), “Jongste 24 communicatieplannen: nog steeds wettelijke omissies”.
- Autoriteit Financiële Markten (AFM), “Jaarlijkse voortgangsevaluatie Wtp: maak van communicatie kernproces!”.
- Recording YAI Connect session with Marit Kosmeijer including presentation on actuview: “YAI Connect: Moving Europe’s largest DB system to DC – The status and challenges of the new pension system in the Netherlands”.