Market consolidates
Pension administration services are activities in the field of administration and communication for pension funds. With the new pension law (Wtp) as a catalyst, the number of players in this market is expected to decrease and a small number of large parties will remain. APS currently has a modest market share. To be relevant, economies of scale are essential. With the recent departure of a major customer, this scenario has not become any easier. In addition, APS is not profitable and the focus in the coming years will be entirely on the Wtp transition. Therefore there is less room for growth. In this context, a phase-out scenario towards 2030 has been chosen. 

Commitment to customers for Wtp transition 
In the phase-out scenario, the continuation of good customer service is central. APS has committed itself to its clients to ensure a smooth transition to the new pension system. That commitment remains unchanged.
Daphne de Kluis, member of the Executive Board and responsible for the pension company: “This is not an easy decision. Achmea has a long and rich tradition in the field of pension administration services. However, it is not possible to make APS profitable, and a scenario of scaling up has too many uncertainties. In the coming years, our focus will be on properly transitioning our existing customers to the new pension system and guiding them to another pension provider. We will make every effort to support employees whose work is affected as best as we can during the change process and to provide guidance to other work where necessary.”

Impact of the decision
APS employs about 350 internal colleagues. In addition, partly in the light of the Wtp transition, some 200 external colleagues work here. In order to serve the Achmea brands, there will continue to be work for a reasonable number of colleagues. The jobs that will eventually disappear will be managed as much as possible through natural attrition and internal mobility. However, redundancies cannot be ruled out. The changes will be submitted to the works council for advice. An amount of € 175 million will be reserved for the phase-out. The negative impact of this on the group solvency ratio amounts to 2.5%-points.

Achmea will continue to have a strong presence in the pension sector
APS will continue to serve the Centraal Beheer PPI, Centraal Beheer APF and the Stichting Pensioenfonds Achmea in the future. With these business units, just like with Achmea Pension & Life, Achmea Investment Management, Achmea Real Estate and Achmea Mortgages, Achmea is focused on growth. This means that Achmea remains strongly represented in the pension sector. 

Bianca Tetteroo, Chair of the Executive Board: ‘We’re very pleased to have arrived at this collective labour agreement together with all of the unions, and with broad support among our employees. It was the first time that union members as well as all employees could vote on the outcome. That was a nice, innovative aspect, and they all rose by the occasion. The CLA includes a comprehensive package of agreements that does justice to the wishes and needs of our employees. Once again, we are investing in sustainable employment for now and the future.

Main subjects in the new collective labour agreement

• Agreements regarding wages:
  o   Starting from January 2024, there will be a structural wage increase of €300 gross per month, with a minimum of 7% for scales up to H, and a minimum of 6% for scales I, J and K. This comes to a weighted average of 7.5% in 2024.
  o   At the start of 2024 there will be a one-off payment of €2,000 gross.
  o   Starting from January 2025, there will be a structural pay rise of 4%.
• From 1 January 2025, the ceilings for the three highest scales will be increased in order to align better with the labour market.
• An alternative commuting compensation scheme (pay per use) will be implemented from 1 July 2024. This is expected to align better with our way of working and travelling, and will better suit Achmea’s sustainability goals.
• The existing pension scheme will be extended at current levels until the Future Pensions Act (Wet toekomst pensioenen, Wtp) is implemented.
• A climate budget will also be made available for new employees, following their first year of employment.

Other agreements relate to increasing the continued salary payment for short-term care leave, from 70% to 90% of the salary. Staff will have more times throughout the year to choose more or fewer working hours (through Achmea Select). The Early Retirement Scheme (RVU) allowance will no longer distinguish between part-time and full-time employees. Agreements about pensions as a consequence of the Wtp, such as the type of pension scheme, the premium amount and the commencement date, will be made during 2024.

A summary of all the agreements reached is included in the negotiation result.