APG’s approach
APG concludes agreements with affiliated pension funds concerning communication to members and employers. The starting point in this regard is the pension fund’s requirements and wishes, and the budget available for communication. Based on the factors referred to, APG draws up a communications plan that is designed to apply for a number of years in close cooperation with the pension fund concerned. As soon as the plan is approved, we conclude agreements about tactical implementation and timing, after which we carry out the necessary activities. This process involves structural coordination with the pension fund concerned and the communications plan is adjusted if necessary, for example in response to the current state of the market.
Range of communication resources
APG has extensive experience in pension communication. We therefore know which means of communication work and which do not. We are happy to share this knowledge with the pension funds for which we work. The range of communication resources available to pension funds is extensive, ranging from a uniform pension statement to a personal digital file that makes it possible for members to calculate scenarios, and from a magazine and digital newsletter and the provision of information on location to the organization of expert customer service and a virtual assistant on the pension fund’s website. There are therefore sufficient options for every pension fund.
Communication channels of APG
Personal is key
Pensions are complex. Moreover, a pension is something that is not immediate to most members, which makes it difficult to generate interest in the subject. A good way of bringing the subject closer to the center is to personalize the information provided. APG’s thorough administration with respect to members makes it possible to provide customized pension information. Another way of making the subject more accessible is by providing information in the form of animations. Such animations show, for example, how the Dutch pension system works and provide insight into the factors that determine the future pension. Animations of this kind can be placed on a pension fund’s website. Studies have shown that they are both frequently viewed and effective.
Transparency and trust
Decreasing coverage ratios as a result of the credit crisis have undermined members’ trust in pension funds. Members are concerned about the risks associated with pension investments and wish to have greater insight into possible future scenarios. The pension agreement also explicitly emphasizes the importance of communication about risks and potentially unfavorable pension outcomes. This is a tremendous challenge for pension funds, since they must communicate in a way that is transparent and rooted in reality while at the same time maintaining members’ trust. APG offers support in this process.
Examples of transparency
How does one inform members about risks and uncertainties regarding their pensions without causing them unnecessary concern? APG discusses this matter with the affiliated pension funds.
APG’s advice is to proceed on the basis of questions that members put in this regard to customer service staff. Listening properly is key. In addition, it is important to reduce the distance between a pension fund and a member, for example by making it possible for board members to speak with pension fund members and producing short films of such meetings that can be placed on a pension fund’s website. Experience has shown that this approach is far more effective than copious amounts of text.
Measuring is knowing
APG considers it important to permanently monitor and improve means of communication. Testing means of communication is essential to providing a good product. We therefore test all means of communication prior to using them in operations and also test whether a given means of communication used has achieved the desired effect. We continuously adjust means of communication on the basis of such tests.
Digital unless otherwise
Good communication with members does not have to be expensive as a matter of course. Costs can be reduced by making good use of social media, the internet and email capability. In consultation with the pension fund concerned, APG can provide a well thought-out communications mix that is as effective as possible. Experience has shown, for example, that a virtual assistant that answers questions on a pension fund’s website considerably reduces the number of telephone discussions that have to be handled by staff from the customer service department without undermining customer satisfaction. Indeed, members appreciate that their questions can be answered at any time convenient to them and that they do not have to wait for answers. In a manner of speaking, two birds are therefore killed with one stone in this regard.
