Sunday 12 July 2020

Boost state pension to compensate for cuts, union says

Photo: DutchNews.nl

Trade union federation FNV is calling on the government to increase the state pension (AOW) to compensate for cuts to corporate pensions and to maintain pensioners spending power.

The recent agreement on reforming the Dutch pension system was based on the assumption that corporate pensions would not have to be cut, but the looming reductions are threatening trust in the system, FNV pension chief Tuur Elzinga said.

The new rules still have to be finalised and there is a great deal of speculation about what they will be, Elzinga said.

‘But as long as cuts are an option in the current system, the cabinet should be responsible and keep pensioners’ spending power on an even keel,’ he said. ‘Raising the station pension is a good option, because it has gone down in real value over the past few years.’

Ministers are about to put their final touches to next year’s spending plans and the FNV call comes at an opportune moment, the Financieele Dagblad reported. Upholding spending power is a key part of Dutch budget talks.

The Dutch state pension is currently €928 net for a single person, based on the 50-year residency rule.

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