FNV chairman about new pension law: everyone is improving

Young and old will benefit from the new pension law, says FNV chairman Tuur Elzinga at Sven Op 1. “We see that everyone’s pension expectation will probably increase when they switch to the new pension system.”

After a considerable delay, the deferred pension law was submitted to the House of Representatives yesterday. The law should come into effect next year. This is followed by a transition period, in which the chance of indexation of pensions increases. The system will then actually come into effect on 1 January 2027.

The fact that everyone benefits is only valid if the economic situation continues to go well. “If the funding ratio (the indicator for the financial health of a pension fund, ed.) falls below 100, there is a problem, but that was also the case in the current system,” explains Elzinga.

“Most funds are back in that safe zone right now.” This is partly due to the rise in interest rates. “But from 95 percent you can travel fairly safely. With the margin that is available, you can even keep a solidarity reserve to absorb blows in the coming years if necessary,” says Elzinga. “The prospect of an increase is getting better for everyone.”

Pension gap?

And so also for the forties to sixties. It was feared that this age group would face a pension gap. In the new pension system, the so-called average system will be abolished. At the moment, this premium ensures that everyone in the current system accrues pension for the entire pot, and people who are currently retired are paid from that pot.

This means that young people also invest money for the elderly. This is different in the new pension law: young people will start saving for themselves. That means that a problem could arise for the age group of people between forty and sixty. As young people, they will then have built up too little pension for their contributions, and the moment they benefit from the current system, it will cease to exist.

‘Entirely different way of accruing pension’

“We are now going to build up pension in a completely different way,” explains Elzinga. “Two years ago, all kinds of calculations showed, before we worked out the first outlines of the pension agreement, that all age cohorts actually make some progress with a transition to the new proposal.”

He emphasizes that this does depend from pension fund to pension fund. If people do deteriorate, “compensation has to be made”, he says. “And then there has to be a balanced transition from the old to the new pension system.”

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By: Marinka Wagemans

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