Once the outlines for the Netherlands’ Future Pensions Act became clear, APG was preparing for a new pension system. For this, the pension provider was looking for a solid and scalable Defined Contribution (DC) software solution. In order to achieve a solid pension administration, APG asked Eraneos to draw up a sourcing strategy while advising and supporting it during the procurement procedure, including the selection of a preferred supplier and solution. Its main goal? To acquire a digital platform that was proven to be open, scalable, and cost-effective.
Eraneos’ approach was based on its best practice for sourcing projects, with the first step being to prepare a sourcing strategy. We carried out a selection process on the basis of the objectives, scope, and preconditions. Based on relevant market knowledge, a written market survey was conducted among potential suppliers, which resulted in a long list of potential external suppliers.
Three parties were selected to participate in the final selection. This final selection consisted of three working methods, namely a proof of concept, a due diligence, and a quotation based on an extensive request for proposal. Together, these three working methods led to a final assessment of the software solutions on offer, and eventually, the final advice for the preferred solution was drawn up. Shortly after, the executive board of APG decided to start contract negotiations with the chosen supplier.
As the largest pension provider in the Netherlands, APG provides pensions for 4.8 million participants alongside board advice, asset management, pension administration, pension communication, and employer services. APG works for pension funds and employers in the education, government, construction, cleaning, housing corporations, sheltered employment, medical specialists, and architectural firms sectors. APG manages approximately 600 billion euros in pension assets. With approximately 3,000 employees, APG operates from Heerlen, Amsterdam, Brussels, New York, Hong Kong, Shanghai, and Beijing.
Eraneos was able to complete all objectives from the sourcing strategy for this project. This included:
- Broadly analyzing the market and exploring all options that lay outside the APG organization’s comfort zone
- Selecting a software solution that serves all customers of APG
- A new policy and capital administration, which allows the future system landscape to facilitate participant/employer customer journeys within a new pension system
- Successful implementation of the first WTP schemes in the new system landscape
- Ensuring no deficiencies were found in the selection process during the (external) audits.
Successfully completing the above laid the foundation for the next phase to be carried out, namely contracting, realization and implementation.