NETHERLANDS - The European Commission’s proposed directive on pensions portability must be rejected because it will have a negative impact on Dutch pensions, the Labour Foundation, or Star, says.
“The directive doesn’t offer a solution for the mainly fiscal problems with the cross-border portability of additional pensions,” the Stichting van de Arbeid said in a letter to Social Affairs minister Aart Jan de Geus.
“Moreover, judging whether an international transfer value is beneficial to their personal pension build-up will remain extremely complicated for workers,” it added.
The portability proposal has come under repeated fire from member states, MEPs and industry groups – and the increasing feeling in Brussels is that the executive will have to go back to the drawing board and reconsider its plans.
Star – the platform of the social partners – had already indicated at the end of last year that the proposal was unacceptable. “The most recent developments, have reinforced this opinion,” it said.
Star argues that the present proposals ignore that the main obstacle for labour mobility are to do with tax. It also says that the proposed rules are a threat to additional pensions in the few member states – Holland, the UK and Ireland – where the financing of additional pensions is based on capital funding.
Furthermore, the Star objects to the lack of clear accounting rules and actuarial principles for cross-border value transfer.
It’s asked the minister to find out if the European Commission is willing to issue a recommendation for removing the obstructions within a transitional period of five years.