Dutch pension administrator AZL has opted for Festina Finance as a supplier for its new defined contribution (DC) pension administration.
The new system allows AZL to adapt to the new pension system quicker than if it had to adjust its own internal admin system.
AZL expects the move will reduce admin costs and improve service levels for its pension fund clients while enabling the firm to make the transition to the new DC-based pension system which will gradually come into force as of next year.
According to AZL, Festina’s Life & Pension Platform is “advanced, flexible, fast and agile”.
AZL is the second Dutch admin client for Festina after APG, which sealed its deal with Festina last month. At the time, APG executive Francine van Dierendonck said she hoped Festina would get more Dutch clients, saying this would be “in the interest of APG”.
AZL services 44 pension funds with 1.3 million members, compared with APG’s 4.8 million members across eight pension funds.
Festina’s admin systems will be implemented “step by step” over the coming years, AZL said, and should be fully operational by 2025 so pension funds can start migrating by then.
AZL will stop running its current internal system by 2027, when the pension transition is supposed to be completed.