NETHERLANDS - PFZW, the €86bn pension fund for the Dutch health and welfare sector, has spoken out against new cabinet measures intended to increase labour participation between the ages of 62 and 65.
In a statement today, the fund (previously called PGGM) said pension funds would have to make changes to their administration and member communication under the proposed measures.
"This also counts for the voluntary postponement of (a part of the) AOW state pension, because such a delay will also be reflected in the size of the supplementary pension," the fund said.
Additionally, PFZW said the proposed 5% bonus for those who continue working longer as not attractive enough - "this should be at least 7.5%," argued the fund, adding employers' and employees' organisations will have to decide if such a bonus should become part of the pensionable income.
The fund also seea problems with the so-called 'durability contribution' - a new taxation rule in which those above the age of 65 with a higher income could end up contributing to the AOW, also involving pension providers for supplementary pensions.
"Currently, there is little insight into how the durability contribution will be introduced," said PFZW, adding the participants would need more information if the new taxation rule would be introduced.
According to PFZW, funds already have enough on their plates as it is.
"In the last few years, a range of serous pension reforms were implemented. Soon, the indexation label will be made obligatory and in 2011 the pension register will be introduced."
PFZW concluded: "Over the coming years, this will require efforts and investments, and especially further extension and improvement of the communication with participants."
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