Pension Funds Insider

Pension Funds Insider brings the latest pensions news and industry insights; from investment and governance updates to new mandate appointments and pensions regulatory information.

Growing resentment against Dutch pension reforms

Tuesday, October 18, 2011

Image for Growing resentment against Dutch pension reforms

An increasing amount of union members in the Netherlands are voting against the pension reforms that were agreedin principle by the Dutch government and its social partners in Amsterdam last month.

FNV Bondgenoten, the largest largest trade union in the country, opened its referendum for its 475,000 members last week. Members can vote by phone or on the internet until 14 August.

Another big union, Abvakabo, has already rejected the reforms. According to the two parties, pension benefits should not be so dependent on investment outcomes and market developments as is currently the case in the plans negotiated. FNV Bondgenoten recommends that new plans would include a 20% buffer against these possible flucuations, something Social Affairs Minister Henk Kamp earlier said he could not force pension schemes to do.

The FNV federation, which speaks for many trade unions in the Netherlands, including Abvakabo and FNV Bondgenoten, has said it would make a decision in September after all its member unions had voted, it remains one of the few ones positive about the deal which it itself has participated in setting up. Pressure seems to be growing on its chair Agnes Jongerius to resign.

On top of the FNV unions, last week another union, De Unie, also said its members voted against the plans. Its chair, Rendert Algra, even called the agreement "a big failure". The union for mid- and higher educated personel rejected the reforms saying the risks between old and young employees and between employers and employees are too unequal, an opinion shared by many of others.

The unions all agree that new negotiations should take place.

First published 14.07.2011

azeevalkink@wilmington.co.uk