NETHERLANDS - The €4.5bn Dutch retail sector pension fund is to split up its pension rights system.
People of 65 and older will only get inflation correction, while pension rights for working members will track average earnings, said fund chairman Benne van Popta.
According to van Popta, who is also employers’ chairman the Dutch Association of Industry-wide Pension Funds, the Vereniging van Bedrijfstakpensioenfondsen, said other schemes are also discussing the ongoing issue of increased pension rights and payments.
As has been stated before, more and more Dutch workers are unwilling to pay increased premiums to keep current pensioners in higher pensions.
Van Popta said the decision has been made by the board of the fund, although the details and proposal still needs to be presented to the members.
Van Popta expects that the developments at his fund will be followed soon by other pension funds. Indeed, health care fund PGGM is having such talks, although it hasn’t yet come to a decision.
But ABP, the largest Dutch pension fund will not join the discussion. According the giant civil service fund, it has decided that growing premium pressure and payments will have to be covered by all parties involved.
According to ABP, the developments of pension rights will be based on an average salary increase assessment.