Kees Cool, Groningen University, and Anton van Nunen, Syntrus Achmea

By Anton van Nunen and Kees CoolsMarch 2012 (Magazine)

For the first time since the introduction of the Dutch pension law in 1954, pensioners are to be told that their pensions will be cut by 3-4% from April 2013. Also, companies might be forced to pay extra contributions. The stated reason for this is the low coverage ratios of pension funds. But that this is not correct. By calculating a wrong coverage ratio, employees and pensioners are unduly and unnecessarily hurt, and economic growth is frustrated.