With unions divided, future of pension deal now in parliament’s hands

The unions remain divided on plans to reform the pension system, despite a last-minute compromise from social affairs minister Henk Kamp.


Kamp said on Tuesday night he is prepared to make it easier for people to save up cash to offset the cut in the state pension for people who still retire at 65.
The pension reforms envisage a new state retirement age of at least 66 from 2020. People will still be able to stop work at 65 but will get a smaller state pension.
Low incomes
Two unions affiliated to the FNV federation – civil service union Abvakabo and general workers union Bondgenoten – argue that people on low incomes will be in no position to save up money to help them retire early.
The deal, thrashed out between unions and employers with social affairs ministry approval, will now be put before MPs for their approval.
However, it is still unclear if there is majority support in parliament. The anti-Islam PVV is opposed to an increase in the retirement age and will vote against the government despite its alliance.
Opposition
This means Kamp will depend on the opposition to pass pension reform legislation.
Labour, the second biggest party in parliament, also still has doubts. MP Roos Vermeij said in particular the party is concerned that low income workers doing heavy physical jobs would not be in a position to retire early.
Jesse Klaver of left-wing green party GroenLinks told news agency ANP that the unions and Kamp are fixated on still making it possible to retire at 65.
What is most important is that the reforms will guarantee a proper pension system for ‘young and old, rich and poor’, Klaver said.

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