The Dutch Federation of Pension Funds (Pensioenfederartie) has rejected the third version of the proposed New Social Contract (NSC) and Farmer-Citizen Movement (BBB) amendment to the Future Pensions Act (Wtp).

Pensioenfederartie chair, Ger Jaarsma, said the latest version of the amendment offers “no improvement on the previous two”, which were “disastrous proposals”.

NSC and BBB first proposed introducing a mandatory referendum for schemes, which would mean schemes could only transfer to the new system if there is enough support from members.

In the latest amendment, the two political parties propose making the individual right to object, as standard.

The first version of the amendment to the Wtp was changed immediately after submission, after receiving criticism from across the industry. A second version then received criticism from the Council of State, so the two political parties, NSC and BBB, have modified the amendment again.

"NSC and BBB argue that the current system is better for workers and pensioners in times of economic headwinds because it would provide more security. That is a myth. Fixed means, in practice, that pensioners have too little chance of a pension increase year after year,” Jaarsma said.

“The new pension law was created precisely to offer prospects for increases while preserving the strengths of the current system: solidarity and collectivity. With a referendum or individual right of objection, NSC and BBB break that down."

He added that with this third version, the opinions of the Council of State have been ignored.

"The amended proposal measures lead to great uncertainty for everyone – and it will also last longer. Because these proposals seriously delay the transition; at least by 2-3 years. Moreover, the plans are unworkable. The amended proposals are also complex and costly in practice for pension funds and affiliated workers and pensioners,” Jaarsma said.

Expanding on this, he noted that pension funds and social partners would need to redraft their plans, taking them “back to square one”. Jaarsma believes that this would lead to delays and “significantly higher costs” for pension funds.

“They will certainly consider submitting 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,” he concluded.

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