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PvdA and GroenLinks pave the way to support pension reform

Henk Nijboer (PvdA) and Senna Maatoug (GroenLinks) in discussion. Photo: Sem van der Waal ANP

The Labor Party and GroenLinks have withdrawn some of their objections to the government’s pension reform plan, paving the way for the bill to pass the Senate.

Both parties used the last major debate on the change in the House of Representatives on Thursday night to introduce several amendments, including the government’s pledge to halve the number of people without corporate pensions to 450,000. I updated the request to ask for.

They also want to lower the minimum age to start contributing to pensions from 21 to 18, allowing agency staff to start contributing sooner. It also requires a collective arrangement for freelancers, the parties said.

PvdA MP Henk Nijboer said during the debate that he was confident coalition partners would agree to the change. “The new pension system will solve many of the problems with the current system and lead to improved pension expectations for young and old alike,” he said.

The ruling coalition does not control a majority of Senate seats, and support from the opposition is essential.

15 years

First discussed 15 years ago, the aim of the law is to make corporate pensions more sustainable. If the new system goes into full operation in 2027 as planned, workers in the corporate pension system will no longer be able to know in advance the amount of pension they will receive.

Instead, annuities fluctuate according to investment return and life expectancy. In other words, the economy has a greater impact on payments. According to the government, the aim of the reform is to distribute the burden of pension payments more fairly across generations.

A company pension would pay everyone the same amount instead of an average (wage-related) contribution.

The government hopes to have the new law in force by July 2023, with a transition period until 2027.

Currently, the Dutch pension system is based on three pillars: the public pension AOW, the compulsory occupational pension system (sector-wide or company-based) and the individual or private pension system.

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https://www.dutchnews.nl/news/2022/12/pvda-and-groenlinks-clear-the-way-to-support-pension-reform/ PvdA and GroenLinks pave the way to support pension reform

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