NETHERLANDS – Plans to force well-off Dutch pensioners to contribute to the nation’s ballooning state pension costs have been criticised in Parliament.

The country’s ruling CDA party said the proposals by the Social-Economic Council (SER), which were leaked to the press earlier in the week, were not feasible in the short term. But Gerda Verburg, MP for the Christian-Democrats, said her party would be willing to look into the plans on a long-term basis.

Coalition partner VVD is against the plans, with MP Bibi de Vries saying: “This measure is not necessary. We have to make sure enough people are in jobs, so AOW premiums will increase.” But the opposition Labour party welcomed the plans.

The SER, which represents the country’s trade unions and industry, is the main advisory body for the Dutch government on national and international social and economic policy.

Due to Holland’s rapidly ageing population, government spending on state pensions is expected to increase substantially. The state pension AOW is currently funded by tax income as well as premiums over the incomes of the under-65s.

In the leaked policy document, the SER argues the increase in AOW costs should be spread more evenly over all generations, by making well-off pensioners pay a special AOW premium.

Everyone in the Netherlands over the age of 65 is entitled to a state pension. Introduced by the legendary Labour prime minister Willem Drees in the 1940s, the AOW is seen as one of the main building blocks of Holland’s welfare state.