The Pension Agreement is imminent. It seems likely that important choices will have to be made about the division of €1,700 billion and how to achieve a controlled transition to the new system. For most pension funds, the Pension Agreement means that pensions already accrued will be migrated to the new system. The joint capital will then be converted into individual accounts. This transition*integration needs to take place in a ‘balanced’ manner. The challenge will be, amid the complex actuarial arithmetical exercises, to remain focused on that term.
The transition to the new pension system is in the first place not a matter of calculation but of distribution. For this reason, it is essential that all stakeholders are involved in the arithmetical exercises. Not as arithmeticians themselves, of course, but as participants who contribute ideas and jointly decide about what is done with the results of those calculations. This requires being able to properly evaluate those calculations. KPMG will be pleased to translate those results.
The KPMG actuarial team is embedded within the broad KPMG pension agreement approach, helping employers, pension funds, administrative bodies and insurance companies to implement the changes in a properly considered way from A to Z. Specifically, our actuarial team would like to talk to you about pension accounting, transition*integration, financial transformations and insurance solutions for the pensions industry.