Minister to look at giving pension funds more leeway over pay-out cuts

The cabinet is looking into whether pension funds can be given more time to boost their financial reserves to head off a further round in pension cuts, broadcaster NOS said on Friday.

Junior minister Jetta Klijnsma told parliament she is prepared to look for a solution after MPs said during a debate they are concerned about the possibility of more reductions. Corporate pensions have barely kept pace with inflation in recent years and in many cases have actually been cut.

During the debate, 50Plus leader Henk Krol said the current situation is a scandal for ‘people who have built up their pensions and expect a care-free old age.’

Klijnsma has pledged to brief parliament on the situation at the beginning of November. Pension funds are supposed to have assets equal to 105% of their pension obligations.

The giant civil service pension fund ABP is one of those which may have to make cuts next year in order to boost its assets.