The cooperation between PDN and pension administrator, DPS, will continue in 2023. The service level agreement and rate structure will, therefore, be updated in early 2023.
Both the Future Pensions Act (Wtp) and the intended transition to a new pension scheme are again undoubtedly the most important underlying, direction-determining dossiers for the Board in 2023. There will be more clarity in 2023 on the concrete choices the social partners will make in the context of the Future Pensions Act. With respect to the Future Pensions Act, the Future Pensions Act Steering Committee will manage the overall process. The committee will be comprised of a delegation of the PDN Board and social partners. The PDN Board will also continue to direct the fund itself, taking decisions in a timely manner, with the fund bodies and stakeholders remaining well connected. There will be a special focus on the affiliated companies and good connections with the Supervisory Board and Accountability Council. The implementation aspects will also remain a priority in 2023 to safeguard robust future implementation.
The current administration agreement between DSM and PDN as well as the pension agreement will expire at the end of 2023. This also applies to agreements with respect to the other affiliated companies. Discussions regarding a possible extension to the administration agreement and pension agreement started in 2023.
Communication will play a more important role than ever in 2023. There will be a major focus on involving members in the envisaged pension scheme change and the Future Pensions Act transition process. What will change and why? How will the changes affect me? Greater use will also be made of new media. An additional priority will be to manage member expectations of pension provision and payments in the existing pension scheme, particularly relating to indexation. The 2022-2025 Communication Strategy will be further rolled out in 2023, with a clear PDN positioning. This communication strategy will also focus on a broader target group than members, deferred members, and pensioners so that it also reaches other fund stakeholders.
The fund will continue working with the adapted governance structure in 2023, based on operational Board members. Handing over the operational and tactical aspects of daily management to two external expert Board members, drawn from the eight members of the joint Board, enables the Chairman to focus more on the fund’s strategic policy. A review will take place as to whether the new way of working needs further adjustment. This way of working involves the addition of an independent Chairman to the Board to form the Executive Board together with the operational directors.
The sustainability policy for investments will again be a priority for the Board in 2023. Following the detailing of the policy, which took place in 2021, and the implementation of this in 2022, further steps can be taken to introduce the tightened ambitions. Stakeholders will also receive more information on the PDN sustainability policy and its actual impact. The Board believes in the added value that pension funds can create in this area, by investing the considerable sums entrusted to them in a socially responsible and sustainable way. This is not only in line with fund member expectations, but is also a good match for the sustainability vision of DSM, as larger employer.
The fund and DSM pensioner stakeholder organizations appeared in media reports in early 2023. PDN also received many complaints in this context, which were handled by the Complaints and Disputes Committee. Contact with these stakeholder organizations will be continued in 2023. The PDN indexation decisions and the fund’s financial position will be important topics of these discussions.
In early 2022, the world was shocked by Russia’s invasion of Ukraine. The pension fund is deeply concerned about this situation. In addition to the humanitarian ramifications, the conflict in Ukraine is also having an economic impact. Even a year after the invasion, the exact consequences for the economy and financial markets cannot be predicted at present.