What's the opinion of the Accountability Council?

SUMMARY OPINION FOR 2025

The AC is positive about the cooperation with the Board and other fund bodies in 2025. The AC compliments the Board on having the core task of the fund - administering the pension scheme - well in order during a challenging year in which a lot of extra work had to be carried out for the Wtp transition. In addition, the AC considers that the Board has sufficiently ensured the balanced nature of decisions in the Wtp transition dossier. In communication to participants, the AC requests, on the one hand, special attention to the quantitative aspects of the financial consequences of the decisions taken and, on the other hand, a transparent explanation of the change in risks. The AC considers these important for the confidence of participants and to enable a balanced and transparent transition.

FOLLOW-UP RECOMMENDATIONS FOR 2024 (in 2025)

In the annual opinion for 2024, the AC identified 5 priority areas for 2025:

1. Progress of the Wtp transition process.

2. Communication within the context of the Wtp to (former) participants and pension beneficiaries.

3. The establishment of a future vision for Pensioenfonds PDN after the Wtp transition.

4. Monitoring of general administration costs and Wtp project costs.

5. Policy regarding indexation until the transition date.

These priority areas return in this annual opinion with the following recommendations:

Re 1. Recommendation

• Expeditiously complete open recommendations and inform the AC periodically about the progress.

Re 2. Recommendation

Pensioenfonds PDN's communication in 2025 was largely dedicated to the Wtp. The Board involved the AC in a timely manner in the new communication plan and the associated campaign.

• Continue to communicate clearly, especially about the risks and consequences of the Wtp for individual participants. Ensure that the website remains accessible and up to date in 2026 as well.

Re 3. Recommendation

• In 2026, give priority to completing the strategic reorientation, including a clear project plan with milestones and keeping an eye on innovation. Only adjust governance once the strategy has been established.

Re 4. Recommendation

• A multi-year estimate for pension administration costs after the introduction of the Wtp, including clear objectives and a transparent comparison with external benchmark rates. In doing so, monitor the financial outcomes of the fee arrangements agreed in advance for both Pensioenfonds PDN and DPS.

Re 5. Recommendation

The AC is pleased that the maximum pension increase (indexation) for 2025 could be granted. Due to postponement of the transition date to 1 January 2027, the indexation policy will also apply in 2026. The AC expects to be involved in this in a timely manner.

RECOMMENDATIONS 2025

In this reporting year, the AC assessed (positively) 2 formal requests for advice on the intended transition decision and on the extension of the administration agreement. In addition, the AC provided input on the Wtp communication plan and the AC received various responses from the board to written question rounds from the AC to the board regarding the transition file.

In its advice on the transition decision, the AC gave the board nine recommendations. These focused more on:

• establishing the maximum acceptable relative difference in progress between participant cohorts;
• re-assessing the risk appetite of participants within one year after transition; and
• special attention to maintaining purchasing power both before and after the moment of transition.

The AC also advised including a hardship clause in case a group of participants turns out to require additional attention or additional measures.

Based on its findings, the AC makes the following additional recommendations:

Governance

• The AC advises recalibrating PDN's governance as soon as the new strategy and the setup of the fund after the transition are clear. In doing so, the AC emphasizes that PDN must remain well aligned with the strategic plans of DPS so that the visions do not interfere with each other.
• In addition, the AC considers it important that Pensioenfonds PDN makes a multi-year agreement in advance with DPS regarding, among other things, the annual allocation of results, the dividend policy, and the desired level of DPS's reserves, as also mentioned in the 2024 annual report.

Extension of administration agreement

• Communicate intended decisions in a timely manner and involve the AC early in the process, particularly where the AC has advisory rights.

KEY PRIORITIES 2026

The AC identifies four priorities for 2026:

1. A careful transition to the new system as of 1 January 2027, with clear communication on the consequences for participants;
2. The progress of the strategy project of Pensioenfonds PDN and DPS;
3. The multi-year estimate of the implementation costs of Pensioenfonds PDN after the Wtp transition;
4. A timely and well-considered decision on the granting of indexation for 2026.

The complete text and the opinions of the accountability body can be read in the full 2025 annual report of Pensioenfonds PDN and on the website in the 'News from the AC' section.