In conversation with Nancy and Suzanne
Suzanne van Kooten (right) is the new director and Nancy Westerlaken (left) is the new chair of the Board of TNO Pension Fund. On a sunny day, they tell all about what drives them, what challenges they face, and what they do in their spare time.
The pension spark
Let’s start at the very beginning. What was that spark or inspiration that led them to get involved in TNO Pension Fund? Both Suzanne and Nancy started out as members of the Board. As well as their day job at TNO, the two have become engaged in the world of pensions. Why? And what has surprised them?
Suzanne
‘Five years ago, I was asked by TNO if I wanted to become chair of the Board of the Pension Fund on behalf of the employer. With my background as an econometrist, that sounded right up my street. Once I started in the role, I became more enthusiastic by the year thanks to the people I work with and the nature of the field. Pensions are about much more than just econometrics. Then came the changes to the pension system. I was fascinated by social transitions while working for TNO, but I find the transition to the new system even more challenging because pensions are a topic close to people’s heart. So when Kostijn said last year, “I know I want to retire soon, and this job might be right for you”, I started talking to him.’
‘What really surprised me was the huge amount of regulations that affect pensions. Even more so with the new system. There is also a lot of supervision and regulation from the AFM and De Nederlandsche Bank. I just didn’t realize there was so much.’ Nancy agrees. ‘But it’s good that these directives exist, because we’re talking about receiving income at a stage in your life when you don’t have much influence over it anymore.’ ‘And there is still room to develop a lot of strategy, such as ESG policy and the further design of the new system,’ Suzanne adds.
Nancy
Nancy started at TNO Pension Fund in 2014, when Hans Veltman got her thinking about pensions. ‘I knew Hans from the TNO Representation Council. I told him I wanted to step down, and Hans said, “there’s a vacancy for the Pension Fund, if that’s of interest to you?” Pensions? Not something I’d have thought about before, but it did make me think. On the Representation Council, you committed yourself to doing something for TNO and its people, and as director of the TNO Pension Fund, that’s something I can do too of course, and so I applied. I thought it would be a nice challenge and a great move for my own development. I have also been secretary on the Board, and I have also been on what is now known as the ESG Policy Committee. When Suzanne stepped down as chair, I was asked if I would take over. I moved to an employer’s seat and became chair of the Board of TNO Pension Fund.’
‘What surprised me, in a positive way, is that pensions are so fascinating and that there is so much that goes into managing a fund. As an employee at TNO, you mainly notice that part of your salary goes to the Pension Fund, you get your Uniform Pension Statement, Life & Pension, and so on. Only later did I realize that there is a whole organization with a very high level of knowledge behind it.’
Difference between the Board and the administrative office
Suzanne is now part of the administrative office, having previously served on the Board. There are differences between the two, as explained on the website, which shows at a glance who is on the Board and who works at the administrative office. How does Suzanne actually experience that difference? And how does Nancy combine Board work with her work at TNO?
‘As chair of the Board of the Pension Fund, I had a lot of discussions and catch-up moments with Kostijn, then director of the Pension Fund. You then get a sense of what’s happening in the office. On the other hand, as chair of the Board, you are not on Board committees, which coordinate with different staff at the administrative office. Now, in my new role as director, I can see up close how much work the office does – not only all the preparation for Board committees and meetings, but also a lot of work that they are legally required to do under the pension regulations. Plus, we now have the new system to contend with.’
Nancy talks about combining her work at the Pension Fund with her work at TNO. ‘I put a lot of passion and energy into my work at TNO. And that’s true for my role on the Board at TNO Pension Fund too. Neither is a nine-to-five job for me. My supervisor is very good about that and helps me to balance it all, especially right before meetings. Sometimes you have about 600 or 800 pages to read in a week. I spend my weekends doing that too, but I love it; it’s fascinating.’
‘The new system is so complex that it’s like we are all inventing the wheel. This goes for the whole sector, including advisers and regulators. No-one has ever dealt with a transition like this before.’
Suzanne van Kooten
Diversity and more
Two women at the helm: Suzanne is now director and Nancy is chair of the Board. Is TNO Pension Fund unique in that regard, or are there more female-led pension funds?
‘There might well be another pension fund with a female director and chair of the Board, but you don’t see it very often,’ Suzanne points out. ‘You often see that about 10% or 20% are women. And Board members aged 40 or under are also a little more difficult to find.’ ‘We now have four female Board members, two of whom are prospective members, with even representation among the various segments of the company,’ Nancy adds. She herself is also one of the youngest people to chair the Board, having started in the role at 45.
‘The strength of TNO lies in the organization being able to find high-quality Board members,’ says Suzanne. ‘Since I joined the Pension Fund, it has had no trouble ensuring diversity on the Board each and every time, which is great to see. This might also have to do with the demographics of TNO. What also helps, of course, is that eight Board members and also members of the Accountability Body work at TNO, so they help to generate interest in pensions amongst their colleagues. That’s terrific, because it adds value.’
‘The equal representation of interests on the Board will help us to achieve a high-quality and balanced decision-making process. That's a real plus.’
Nancy Westerlaken
The major challenges
The new pension system is already covered in detail in this edition of Life & Pension. But it would be good to hear Suzanne’s and Nancy’s thoughts about it.
‘Before, we switched from a final-salary to an average-salary scheme; that was a huge change at the time,’ Nancy says. ‘But nothing like the challenge we are facing now. The transition to the new pension system also feels like a heavy responsibility. It’s a major and unprecedented operation. And in the meantime, we have to make sure we keep everything else ticking over. It’s like keeping a store open while there are renovation works going on. So, we all have to pitch in and be the best pioneers we can.’
Suzanne explains, ‘We are already in the middle of changing to the new system. There’s no way around it. For me, it’s about organizing and facilitating everything in such a way that we stay ahead and keep up momentum in the face of all that pressure. There’s a lot to do, but it’s important that everyone continues to enjoy their work.’
Something different at last
And what do Suzanne and Nancy do when they’re not at work? What inspires them? What do they enjoy doing in their spare time?
‘I used to play a lot of sport,’ says Suzanne, ‘and now I’ve discovered padel. I love doing ball sports. And since the pandemic, I’ve been walking more often, on both short daytime walks and slightly longer walks on weekends. The great thing about walking is that you take your time moving through the countryside, and I enjoy the beautiful views and taking pictures along the way. The other day, I was walking with my sister in Hattem, and suddenly we saw a family of wild boar crossing in front of us. Unfortunately, they were just too quick for us to take a picture.’
Nancy likes to run, but because of an injury, she does a lot of walking now, especially in and around Utrecht. ‘I thought I knew Utrecht well, but now that I walk through the city at a more leisurely pace, I always discover new monuments, statues, and more. I also like to read about history, which ties in well. I have a background in construction and love old architecture and urban development. At the moment I’m reading Gekomen om te blijven, a collection of wonderful stories about the history of Utrecht up to the present day.’
Conclusion
This personal question is a nice way to conclude the conversation.
Let’s take a moment to look back at everything. We also reflect on the personal challenges in the field of pensions.
Suzanne has just recorded a video about the new system, explaining that she very much appreciates how apprehensive everyone is about it. ‘Whether you’re young or old, it’s going to change. We understand that’s bound to cause some nerves. The fundamental principle of a pension will remain the same: you pay a contribution, and your money is invested to build up your pension. We’re doing everything we can on that front too; that’s what drives us.’
Nancy encouragingly adds, ‘It’s complex, nerve-racking, but together we’ll get through it. We have a process that we are going through, in consultation with the Accountability Body, eTNOs, Supervisory Board, the Board, and the administrative office. We’re all in this together.’