The IT company’s first client is the large pension fund Detailhandel, who came on board in January. The French multinational made the move because they think that costs for pension funds can be substantially lower, according to the Netherlands’ Financieele Dagblad.
The cost savings will go to pension fund participants, not shareholders, said Detailhandel’s chairman André Snellen. “Pension funds are non-profit organisations,” he began, “thus the savings will not go to shareholders. We have greatly simplified our scheme. We serve 18 collective labour agreements, everything from shoe repair shops to DIY markets. We simplified all these schemes into one.”
Additionally, the pension fund’s social partners also saw that schemes could be simplified.
The partnership seeks to both streamline pension schemes and optimise IT.
How quickly costs can be reduced, depends on, among other things, according to Capgemini Netherlands pension services director, Arie Edens, the new pension system and what the fund wants.
APM and PGGM, the Netherlands’ top two pension providers, previously predicted cost reductions from €45 to €35 per person. This level of reductions would save the Netherlands’ pension providers millions of Euro per year, as they shell out an estimated €1 billion per year in pension administration.