How AZL modernized digital pension services without replacing legacy systems
From annual pension letters to real-time self-service for over 1.5 million participants, built using Mendix low-code.
Summary
AZL manages pension administration for dozens of pension funds and more than 1.5 million participants. As participant expectations evolved, traditional pension communication no longer sufficed. The challenge was to provide modern digital services without compromising the reliability of the existing pension administration.
Together with Ciphix, AZL used the Mendix low-code platform to build a flexible layer on top of the existing core systems. Instead of replacing them, the solution smartly complements the legacy systems. The result is a scalable participant portal that allows participants to gain real-time insights into their pensions, calculate their own scenarios, and enables AZL to develop new digital services in a fraction of the time.
- Digital transformation without risk
From static annual letters to a real-time self-service portal for 1.5 million participants, built with low-code (Mendix) without replacing the reliable core systems. - Customer-centric self-service
Participants gain direct insight into their pension, can calculate their own scenarios, and receive automatic updates during critical moments.
About AZL
AZL is a Dutch pension administrator that provides pension administration for over 50 pension funds, approximately 13,000 employers, and around 1.5 million participants. In addition to administration, AZL supports pension funds with communication, actuarial services, and board advice.
For an organization that processes large volumes of sensitive personal data daily, reliability, continuity, and accuracy are essential. At the same time, participant expectations for digital services continue to grow.
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The challenge
Pension administration is all about reliability. However, participants now expect the same digital experience as they get from their bank or insurer: constant insight, immediate answers, and the ability to manage their affairs independently.
This created a dilemma for AZL. The existing core systems were excellently designed for processing complex pension schemes but were not built for rapid digital innovation. Adding new functionality was expensive, and every change directly affected mission-critical processes.
The challenge was twofold: to achieve modern digital service delivery while keeping the stability of the pension administration fully intact.
Why traditional development no longer sufficed
The core systems had been a reliable foundation for years, which is precisely why AZL did not want to replace them.
At the same time, the traditional way of developing software clashed with the new reality. Every adjustment required an extensive development and testing process, while participants expected faster results.
โWe were used to working with extremely reliable systems and carefully designing and testing every step of the process. This is a time-consuming and costly process. Our traditional development approach did not align with the modern demand to quickly build applications, add functionality in no time, and immediately process customer feedback.โ
Edward Heijkers, CIO, AZL
AZL was not looking for a new administrative system but for a way to preserve the existing systems while creating space for rapid innovation.
The approach: a flexible low-code layer on top of the core
Together with Ciphix, AZL chose an architecture where a flexible layer is developed on top of the existing pension administration. Instead of making changes to the mission-critical backend, a central participant portal was built that securely communicates with the core systems.
For this layer, AZL selected the Mendix low-code platform. This ensures that the reliability of the pension administration remains fully intact, while new functionality can be developed and expanded much faster.
PACE layered application strategy
The architecture follows Gartnerโs PACE Layered Application Strategy. The core administration in Oracle PL/SQL forms the system of record: stable, reliable, and rarely changed. The low-code layer on top is the domain of differentiation and innovation: fast, customer-focused, and continuously evolving.
On paper, this makes sense. In practice, it initially required a different way of working.
โLow-code is a wonderful technology, but it doesnโt work if you use it in a traditional way. Our developers had to adopt a new approach. With the help, experience, and expertise of Ciphix, we set up agile teams and chose an approach that fits the rapid delivery and deployment of a minimal viable solution.โย
Edward Heijkers, CIO, AZL
A reliable family car instead of the perfect sports car
With low-code, the budget and the number of man-hours within that budget also became a real benchmark. Heijkers compares it to buying a car: previously, AZL would deliver a brand-new sports car on the first attempt, perfect down to the color of the last screw under the hood. Meanwhile, a reliable family car that gets the customer from A to B is often exactly what is needed. If thereโs no budget for tinted windows, you can simply add that option later. That is one of the great advantages of low-code.
The solution: from pension portal to digital service delivery
The participant portal provides a central environment where participants can manage their pension affairs independently. Through the portal, they can:
- securely log in with DigiD;
- gain real-time insights into their pension;
- calculate various pension scenarios;
- digitally submit documents, which are processed directly in the backend;
- automatically stay informed about important moments in the pension process.
The pension planner is the real highlight. A participant can calculate diverse scenarios in real time. Although this requires enormous computing power, it happens on the participantโs own device, without the involvement of an AZL employee. The planner is used by pension funds, including INGโs.
Focus on the customer journey around retirement
During development, the customer journey received a lot of attention, with extra focus on participants approaching retirement age. This is the most complex moment: not joining a fund, but actually retiring.
Customer research revealed something striking. Those who had submitted their paperwork sometimes heard nothing for months afterward and had to wait in suspense to see if they would receive a pension. Thatโs why a notification system was built in: โIn 100 days, you will receive your first pension payment.โ This message is repeated, for example, 50 days and one week before the retirement date.
A simple feature with a major impact on transparency and trust during one of the most important moments in the pension process.
One platform, multiple funds
The portal is designed generically and can be used for multiple clients. There is no need to build a separate portal for each fund. Funds customize their own frontend so that participants log in with the familiar branding of their own pension organization. This makes new developments not only faster but also more efficiently manageable.
Results: a digital foundation for further innovation
With the participant portal, AZL has a scalable digital foundation for further innovation. The key results are:
- a digital participant portal for approximately 1.5 million participants;
- usable for over 50 pension funds from a single generic platform;
- real-time insight into personal pension situations;
- participants calculate their own pension scenarios on their own devices;
- digital document processing through a single central environment;
- automated communication during the pension process;
- significantly less manual calculation work.
The impact on the organization is perhaps the most telling. Where previously four employees worked full-time calculating pension scenarios, participants now do this themselves. This also shifts the role of the employee: from administrative specialist to pension consultant, with more room for personal advice instead of standard question-and-answer work.
โEmployees want to know at any time what is in their pension pot and what changes in legislation or their personal situation mean for them. One complicated letter per year is no longer sufficient. People want to have control themselves, anytime and anywhere.โ
Edward Heijkers, CIO, AZL
Frequently Asked Questions
Why didnโt AZL replace the existing pension administration?
The core systems were reliable and formed the foundation of the administration. The challenge was not in the administration itself but in the ability to develop modern digital services faster. Thatโs why a flexible layer was built on top of the core instead of replacing it.
What technology underpins the participant portal?
The portal is built using the Mendix low-code platform. Mendix forms the flexible layer for differentiation and innovation, while the existing Oracle PL/SQL core systems continue to provide stable administration.
What is the PACE layered application strategy?
An architecture model by Gartner that categorizes applications based on their rate of change: stable systems of record and fast-moving systems of differentiation and innovation. AZL uses this model to combine reliability and innovation speed in one landscape.
Why low-code?
With low-code, AZL can deliver new functionality much faster and process customer feedback directly, at lower costs. It enables an MVP approach: first a working solution, then gradual expansion.
What benefits does the portal offer participants?
Real-time insight into their pension, the ability to calculate scenarios themselves, digital document submission, and automatic updates during important moments in the pension process.
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How does the platform support multiple pension funds?
The platform is generic and multi-client. Multiple funds use the same technical solution, while each fund retains its own branding and identity.
What role did Ciphix play?
Ciphix designed and implemented the flexible low-code layer on Mendix together with AZL and helped set up agile teams and an MVP-focused approach. This made modern service delivery possible without replacing the existing pension administration.
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