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MPs back new rules for pension funds

Thursday 27 September 2012

Parliament on Thursday backed the caretaker cabinet's plans to help pension funds avoid cutting pay-outs significantly in 2013.

MPs from the right-wing Liberal VVD and Labour party voted in favour of the pension plans, as did the Christian Democrats. The VVD and PvdA are currently in talks on forming a new coalition government.

The D66 Liberals and green party GroenLinks oppose the plans, saying youngsters will bear the brunt of the changes. The Socialists and PVV say pensions should not have to be cut at all.

The measures include a recalculation of crucial interest rates. In addition, pension funds are to be allowed to spread any reductions in pay-outs over more years. They will also be given 'breathing space’ in 2013, meaning they will not have to increase premiums immediately even if they break coverage ratio rules

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