KPN Pension Fund Explores the Use of Futures to Reduce Equity Risk

Pensioenfonds KPN (PF KPN) recently published its ‘Implementatieplan Wtp’ on October 10, 2025. This document outlines the fund’s strategy for transitioning to a new pension scheme, the ‘solidaire premieregeling,’ with an intended effective date of October 1, 2026.

Increased Premium and Interest Rate Hedging

PF KPN will increase the total actual premium (employer and employee contributions combined) from 23.0% to 25.0% of the pensionable salary under the new solidaire premieregeling. This change is effective from the transition date of October 1, 2026 (page 8, ‘Implementatieplan Wtp’).

To protect its funding ratio, PF KPN increased its interest rate hedging to 100% as of November 1, 2024. This decision was made after conducting various sensitivity analyses on different scenarios and shocks to determine the most effective policy for protecting against financial shocks (interest rates and equities) in the upcoming period (page 29, ‘Implementatieplan Wtp’).

Strategic Exploration of Equity Risk Reduction

PF KPN is exploring the use of futures to temporarily reduce a portion of its equity risk for a short period leading up to the transition moment. This option was considered alongside an option construction or reducing the portfolio of business assets, which were deemed unsuitable due to cost, complexity, and partial protection. Further investigation into the use of futures will occur at a later date (page 29-30, ‘Implementatieplan Wtp’).

Administration: TKP Selected Keylane

TKP has selected Keylane Life & Pension’s Plexus as the new pension administration system, OneWelcome for identity and access management, Appian for management business processes, Quadient for document output management, and ServiceNow for incident and fraud reporting. Visma Idella’s excasso services for pension payments will transition to the Cloud (page 26, ‘Implementatieplan Wtp’).