Parliamentary majority back pension reform plan, PVV is opposed

A majority of MPs support the pension reform sealed between unions, employers and ministers on Friday morning, the Volkskrant reports.


The two governing parties VVD and CDA support the plan, as does Labour, the biggest party in opposition, the paper says.
The PVV, the government’s alliance partner on economic policy, is against the agreement because it opposes an increase in the state pension age. The Socialist party and Liberal democrats D66 are also against it. GroenLinks wants more time to study the recommendations.
Poker
SP leader Emile Roemer said he could not understand why the FNV supported a ‘poker game pension’ system. ‘All the risks will be taken by future pensioners,’ he said.
D66 thinks the increase in the state pension age should take place more quickly. ‘This deal is a watered-down compromise,’ one D66 MP said.
The deal still has to be approved by individual union members, and several influential unions have already said they will recommend a no vote.
The main points of the pensions agreement

  • State pension (AOW) age to go up from 65 to 66 in 2020 and probably again to 67 in 2025.
  • The state pension (AOW) will rise by 0.6% plus inflation from 2013 to 2028.
  • The state pension of people who stop working earlier will be cut by 6.5% per year. Those who work longer than 67 will get 6.5% more for each extra year.
  • Corporate pensions will not work with guaranteed payouts but will vary with stock exchange developments. The effect of changes will be spread over a maximum 10 years, removing the need for quick fixes.
  • Companies and employers can determine the balance between risk and security in terms of the corporate pension fund investment mix.
  • Premiums will be split between workers (one third) and employers (two-thirds) and employers will no longer have to top up the fund if it runs into trouble.
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