The new pension law has new political obstacles, says Anne van Dijk. She calls on FNV members to give their opinion about the conditions for the transition to the new system.
Critics say that it is easier to increase the actuarial interest in the current pension law and that this solves the problem. The problem of not being able to increase pensions due to the actuarial interest, imposed by the cabinet and De Nederlandsche Bank.
Indexation has generally not been applied since 2008, despite pension assets having more than doubled. However, the solution of higher actuarial interest is blocked by a political majority. In addition, a substantial political majority is abolishing the statutory age-independent pension premium and accrual. A major change that just turns the pension system upside down.
Under the new law, the pension premium remains age-independent due to the Pension and AOW agreement that the trade unions have enforced. This prevents the premium from increasing with increasing age. Something that would lead to even more age discrimination than is already the case.
Discounts already applied
It is not that pensions cannot fall under the current law, as critics claim. After all, discounts have already been applied due to the funding ratio that is too low. Large reductions have also been prevented by the Pension and AOW agreement that the trade unions have concluded.
The new law is necessary to enable indexations. The discount rate disappears. It is based on the investment and premium income. In anticipation of the new law, indexation is already possible because the threshold for indexation has been lowered from 110/135 percent to 105 percent.
The opponents of the new law argue, rightly in my opinion, that the investment returns are sufficient for indexation. However, when it comes to the new law, they argue that it is dangerous to assume investment returns. If one is true, the opposite cannot be true.
New obstacles
The new law has new political obstacles that need to be removed. The yield allocations differ per 5-year age category and are no longer the same, as they are now. A new political obstacle devised by the legislator and not resulting from the Pension and AOW agreement that unions have enforced.
The conditions for the transition to the new system (introduced between 2023 and 2027) and thereafter will be submitted to the members (retired and working members jointly) of the FNV for approval or rejection per pension fund. That is, at pension funds to which the FNV is a contracting party. Retired members can indicate to the FNV which industry pension fund they fall under.
Anne van Dijk is a member of the FNV member parliament for seniors and wrote this article in a personal capacity