As expected, the FNV trade union federation on Monday evening agreed to back plans to reform the pension system following last minute compromises from social affairs minister Henk Kamp.

But the federation’s two biggest unions remain opposed and say they no longer have any confidence in FNV leader Agnes Jongerious.
The two unions, Abvakabo and Bondgenoten, say the deal does not take sufficient account of the effect of the changes on people doing physically heavy labour on low incomes. They are also unhappy that stock exchange developments will have more influence on the size of corporate pensions.
Controlling influence
The dissident unions represent a majority of FNV members but do not have a controlling influence on the board.
Minister Kamp welcomed the agreement. After two years of talks ‘we can now get going’, he said. The agreement paves the way for a rise in the state pension age to at least 66.
The government wanted union support for the changes to head off the threat of industrial action once the draft legislation begins its passage through parliament.
Buffers
Top economist Sweder van Wijnbergen says in Tuesday’s Volkskrant that pension funds will be in danger of losing their buffers when the changes take effect and youngsters in particular will end up ‘whistling for their pension’.
‘I think that three-quarters of pension specialists lack the financial expertise to understand the implications of the new system,’ he said.
The agreement, which also has the approval of employers groups, will now be translated into draft legislation. The Labour party last week approved the plans, giving the minority coalition a majority in the lower house of parliament.