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"Pension cuts 2020 are for most funds off the job"

2019-11-13T16:12:42.151Z

The reduction in pensions for next year has been averted for most funds, reports among others NOS and RTL on the basis of insiders. Minister Wouter Koolmees (Social Affairs and Employment) would prepare a reduction in the requirements for pension funds, so that they do not have to cut back, or less.



The reduction in pensions for next year has been averted for most funds, reports among others NOS and RTL on the basis of insiders. Minister Wouter Koolmees (Social Affairs and Employment) would prepare a reduction in the requirements for pension funds, so that they do not have to cut back, or less.

In recent months there has been much to do about the possible discounts that pension funds will have to implement. The funds are often below the legally established standard of 104.3 percent, the so-called coverage ratio, which they must achieve on average over twelve months. If that degree is not achieved, the funds must reduce their pensions.

If Minister Koolmees relaxes the rules, discounts can be avoided. According to insiders, he now tends to adjust the coverage ratio to 90 percent. In the pension agreement earlier this year, it was decided to relax to 100 percent.

Large pension funds have fluctuated around 90 percent in terms of coverage in recent months.

There is political support for relaxation of the funding ratio, it appeared Wednesday morning. PvdA and GroenLinks then announced that they would withdraw their support for the renewal of the pension system if this means that pensions will be lowered in 2020. They thereby choose the side of, among others, the trade unions. This may be a factor in the Minister's consideration of further adjusting the coverage ratio.

Minister Koolmees said on Tuesday that he "has a view of a solution", without going into its content.

See also: Ten questions about pensions that you may not dare to ask

Source: nunl

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