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FNV Members Give Nod to Raise Future Pension Age in the Netherlands

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12 July, 2010

In a rare advisory referendum taken amongst members of the Dutch national union FNV, 80% of those voting agreed with the negotiated result between unions and employer federations to raise the basic retirement pension (AOW) age of the country.

In balloting between 19 June and 1 July, 160,000 of 1.4 million union members voted that the Dutch retirement age ought to be raised from 65 to 66 in the year 2020, and then possibly to 67 in 2025 if a national evaluation of higher life expectancy after 2020 warrants it. The advisory vote goes to FNV’s Council on 14 July, which is now expected to endorse the 4 June negotiated agreement between social partners.

FNV Bondgenoten President Henk van der Kolk

The negotiated social plan is seen as a guiding measure to a deadlocked government on retirement policy. The results of a 9 June election in the Netherlands revealed that any coalition government quite likely would come up with an even worse solution on pension revenue shortfalls and mandatory retirement age.

Under the proposed social plan, workers would still have the option to retire at 65, but they would face a 6.5% reduction in pension benefits. And under the union-business plan, the lowest-paid workers, and workers who do heavy physical jobs, would be exempt from any rise in the current pension age.

FNV Bondgenoten President Henk van der Kolk said he was pleased with the outcome of the late June balloting, calling it “a clear result.” The advisory referendum, a difficult administrative undertaking, was only the fifth time that FNV has even taken such a vote from its entire union membership.