The Dutch Federation of Pension Funds (Pensioenfederartie) has said it is “deeply dismayed” by the Dutch political party, New Social Contract’s (NSC), proposed amendment to the Dutch Future Pensions Act (Wtp).

The political party argues that pension members themselves have not been given a say in the transition of their accrued pensions. Due to its concerns, NSC MP, Agnes Joseph, has produced a report, Working towards a future-proof pension, which contains its plans to improve the transition to the new system.

In addition, on behalf of NSC, MPs Agnes Joseph and Pieter Omtzigt, together with Farmer-Citizen Movement (BBB) MP, Henk Vermeer, have tabled an amendment to the Future Pensions Act (Wtp). This amendment would give participants a collective right of consent on the transition of their pensions to the new system.

Commenting, Joseph said: “The new pension law creates financial uncertainty for all members, pensioners and so-called sleepers (people who are no longer employed but are not yet receiving a pension).

“They have never been asked if they agree to it. The law even made it impossible to object in person. We believe people should be able to decide on their own pension funds. That is why we want a collective right of consent for each pension fund.”

However, Pensioenfederartie chair, Ger Jaarsma, said the proposed changes “effectively demolish” the Future Pensions Act, and added that the plans are “unworkable and unaffordable”.

He continued: "In general, we are highly critical of each time new proposals hit the foundation of pension reform. After all, Pensioenfederartie has been asking for calm and space for some time. So that pension funds can work with full focus on a proper and careful transition for millions of working and retired people to the renewed system."

If the amendment were to be implemented, he warned that it would mean pension funds and social partners, some of which have already transitioned, will have to redo their plans.

“Fundamentally different choices have to be made. In short, we will be back to square one. Years of work and investment are undone. This is ultimately precisely to the detriment of working people and pensioners," Jaarsma said.

"The proposed changes will irrevocably lead to delays and significantly higher costs for pension funds as the work has to be redone. They will certainly consider making a claim to the government for the costs incurred. The promised and sizeable Brussels funds, which the government will receive upon timely reform of the Dutch pension system, are also at great risk. How NSC intends to absorb these huge costs financially is completely unclear."

Furthermore, he stressed how the current plans are “designed with the idea that the strengths of the current system are preserved: solidarity and collectivity”.
“This produces welfare gains. To achieve this, a single pension scheme must remain in place to maximise benefits for working and retired people. The referendum breaks the above principles,” he concluded.

A debate will now be held in the Dutch Lower House on 29 January to debate the Wtp again.

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