Unions, employers near agreement on increasing pension age

Unions and employer organisations are close to reaching agreement on how they would like to see an increase in the pension age implemented, various papers report on Thursday.

The deal, which has not been finalised, involves an increase in the pension age from 65 to 66 in 2020 and possibly to 67 in 2025, depending on life expectancy developments. Both state pensions (AOW) and corporate pension schemes would be affected.
An agreement between unions and employers will create ‘broad support in society’ for the changes and prevent labour unrest, the Volkskrant says in its report on the agreement.
The unions and employers hope to publish a final version of the plan before the June 9 general election.
An increase in the state pension age is an important election issue, with most parties backing an increase to 67 but under different tempos.
Efforts to bring in the rise by the outgoing government floundered on union opposition and were cut short by the cabinet collapse.
Although it will be up to the next cabinet and parliament how to implement the increase, the union and employer agreement is likely to be influential, Nos tv states.

Physical work

The Telegraaf says the agreement will also allow workers who plan to retire at 65 to do so, although they will face a 6.5% cut in their pension payments. Unions have been keen to maintain the 65-year option for workers who do heavy physical jobs.
State pensions will also rise in line with real pay developments.
And both sides have agreed pension premiums should be frozen to offset the effect of the increase in the pension age, which will protect employers and pension funds, the Telegraaf says

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