A couple more concessions were enough to persuade the PvdA (Labour) to support the government’s plans to reform the pension system during a lively debate in parliament on Thursday night.

The minority government needed opposition support to win a majority for the changes, because its official alliance partner, the anti-Islam PVV, opposes increasing the state pension age to at least 66.
The deal has been thrashed out over a two year period by unions, employers and ministers. Union and corporate support for the plan is seen as essential to ensure it can become law without too much outside protest.
Low incomes
The latest concessions again involve help for people on low incomes who will be hit hardest by financial penalties for people who still want to retire at 65.
The agreement will now be turned into draft legislation and still has to be formally approved by both houses of parliament.
Several of the countries’ biggest trade unions are still opposed to the plan because of the likely effect on people doing physically heavy jobs with low incomes. The FNV trade union federation is divided and will vote on the latest concessions on Monday. Insiders expect it will agree to the plan.
What do the pension reforms entail?
The deal means the pension age will go up from 65 to 66 in 2020 and possibly to 67 in 2025, depending on life expectancy projections.
The state pension will be increased every year in line with the average pay rise. In addition, pensions will rise by an extra 0.6% between 2013 and 2028. People on a low pension will get an annual €300 bonus.
People will still be able to stop work before they reach 66 but their state pension will be cut by 6.5% per year. Those who work longer will get an extra pension of 6.5%. People will be able to save up cash in special tax break schemes to offset the financial impact of early retirement.
Corporate pensions
Corporate pension funds will also be affected. They will have more freedom to invest on the stock exchange, which means pensions will depend on share price movements. They will also have to adhere to less strict rules on their coverage ratios.
However, the external supervision of pension funds will be stepped up and unions will be involved in determining investment strategy.