FNV Bondgenoten Members to Vote on Pension Reform Plan

A proposed agreement between social partners FNV Bondgenoten and employers’ federations, reached 4 June over reform of the basic retirement pension (AOW) in the Netherlands, will now go to a vote of union membership.

The social plan under consideration calls for the Dutch retirement age to rise from age 65 to 66 in the year 2020, and possibly to 67 in 2025. That would occur only if a national evaluation of higher life expectancy after 2020 warrants it. Workers would still have the option to retire at 65, but they would face a 6.5% reduction in pension benefits. And the lowest-paid workers, and workers who do heavy physical jobs, would be exempt from the rise in the pension age.

FNV Bondgenoten is organizing what is expected to be hotly-debated membership meetings across the country from 21-23 June to discuss the pension reform plan. Union members will vote on the plan between then and 30 June. In early July, the 480,000-member general union will consult leaders of the Dutch national labour center, FNV, if the proposal is accepted.

Bondgenoten President Henk van der Kolk admitted the proposed AOW is a step backwards, but argued it could be a workable solution considering shortfalls in both public and private pension funds and proposals put forward by political parties.

Henk van der Kolk

The agreement came days ahead of the 9 June general elections in the Netherlands, elections in which three of the four political parties campaigned on pension reform that had worse terms than the proposed social agreement between Bondgenoten and employers. In that vote, parliamentary gains by the center-right Liberal Party (VDD) – considered the winner in the vote – and the racist Freedom Party (PVV) will make a Dutch coalition government difficult to put together.

The VDD’s platform consists of an increase in the pension age of two months each year, dating back to 2007, with retirement at 67 proposed for the year 2023. The pre-election agreement cobbled together by the labour-business social partners, which likely will carry much weight with any future coalition government, if accepted, also means Holland has ten years to straighten out financial matters. The proposed reform plan, if moved ahead, would cover both state and private pensions.