The Wtp transition: Lessons learned from Marit Kosmeijer (Sprenkels)
This special was originally written in Dutch. This is an English translation.
Marit Kosmeijer, Director of Investments and Actuarial Services at Sprenkels, made the switch to the new pension system on 1 January 2026. She shared her experiences with Financial Investigator.
By Esther Waal
How did the transition go for the funds you were involved in?
‘We saw a smooth transition across Sprenkels. Interest rate hedges were quickly phased out where necessary, and any protection structures expired on the transfer date. The feared effects on the interest rate markets due to a wave of swap sales did not materialise at the turn of the year: high coverage ratios led to indexations and higher transfer capital (and therefore more demand for hedging). Pre- and post-sorting took place, and due to the rise in interest rates during the year, many speculators have already closed their positions.’
Why did funds choose January 2026 to make the transition?
‘The funds that chose 2026 (or were rolled over from 2025) generally wanted to start as soon as possible. This choice was often made several years ago, frequently based on the desire of social partners and pension funds to start the new scheme for their participants as soon as possible. The reason why January is often the chosen month (and not another month) is simply a matter of habit: 31 December is the financial year-end, contracts often expire on 31 December, and the administration and audit are calibrated to this date.’
Were adjustments to the portfolios necessary?
‘Yes. Interest rate hedging went down and returns went up. In terms of interest rate hedging, partial pre-sorting had often already taken place. The decision to pre-sort and the extent to which this was done depended on the financial situation of the fund and the interest rate hedging required after the transfer.’
The pension funds that were transferred on 1 January 2026 did so under significantly different economic circumstances than at the beginning of 2025.
To what extent will portfolios change in the new situation?
‘For funds that have not yet adjusted the composition of their portfolios (i.e. those that are only increasing returns with the same composition), I think most will first be busy with the new regulations. Once that has settled down, there will be room to reconsider the investment portfolio. For funds with significantly higher return portfolios, the transition may be a reason to look at new (illiquid) categories. However, the details of this must be in line with the risk preferences of the participants.’What are the most important points to consider now that the transition is complete?‘Performance monitoring is different in the new system: there is no longer a coverage ratio. This means that funds have to reassess when they are ‘performing well’ as a pension fund. Rebalancing will be different, monitoring will change, and the allocation of monthly returns will be immediately visible to different participant groups. Especially if it is a volatile year, small differences in management or monitoring can lead to large differences between pension funds. This requires, even more than before, clear and explainable policies and good communication. It is important that funds get a grip on their own performance in the new system.’
What is the most important lesson for parties that are yet to make the transition?
‘Prepare for as many realistic scenarios as possible. The pension funds that entered the new system on 1 January 2026 did so under significantly different economic conditions than at the beginning of 2025, with higher interest rates and equity returns. Decisions regarding balance and investment policy sometimes had to be made quickly and new scenarios had to be explored. Identifying shifts in economic conditions in good time ensures that decisions do not have to be made again at the last minute. The situation on 1 January 2027 may be significantly different from today, which means that a smooth transition is not guaranteed again.’
Read the original special in Financial Investigator magazine