A new study by accountancy firm PricewaterhouseCoopers (PwC), released yesterday, shows that the majority of Dutch employers welcome pensionreform but feel they will not necessarily apply the needed changes in their own company due to feelings of 'paternalism' towards their employees.

The Dutch pension reform agreement, which was signed over the summer, aims to provide a fairer risk-sharing model between pension schemes and their members. Although the changes are complex, which, if not communicated clearly, may in some cases lead to differences in how they are applied, the larger share of the 80 employers questioned by PwC agree that the changes are for the better.

The study obtained the views of decisions makers and pension experts at 80 employers who say they like the idea of more stable pension contributions, flexible retirement ages and a further move towards less certain rights. "These changes will make their costs more certain and return them to a more sustainable level," says the report.

However, at the same time the report shows that employers do have doubts about whether the agreement can be applied in their company. For example, not all employers (only 2 out of 5) are equally happy for their employees to work beyond the current retirement age of 65. In the new proposals the retirement will first go up to 66 in 2020 and to 67 in 2025.

The difference between the employers own views and that what they expect to do, says PwC, are due to two main reasons:

• Some employers still feel a strong sense of paternalism towards their employees. They say they want to protect employees from cuts in their pensions by paying more to their pension funds when required.

• Others do not feel in control of how the agreement will be applied for their company. For example, employers who are covered by industry-wide pension funds do not have a direct say on the pensions of the employees.

For more results of the study visit the PwC website.

First published 28.10.2011

azeevalkink@wilmington.co.uk