The new pension law was passed by a large majority in the parliament.

The House of Representatives passed the Future Pensions Bill by a large majority. In the poll, 93 deputies were in favor and 48 deputies were against. The vote was the culmination of long discussions and negotiations. The parties voting in favor are VVD, D66, CDA, ChristenUnie, GroenLinks, PvdA, SGP and Volt.

The law regulates the transition to a new pension system and the rules. According to its advocates, this is more equitable for workers of different generations than the old pension system.

generations

The aim is for young workers, including those with flexible working hours, to receive pensions faster and earlier. They contribute less to the ‘old’ fixed pension arrangements of previous generations. You can also benefit from advantageous investment results earlier. As a result, retirement pots can increase.

In the past, pensions could not always rise with inflation, the so-called indexation. In the new law, the rules are more flexible and pensions can be increased sooner if investment results are good.

Pension participants, on the other hand, take higher risk through investment. The law requires pension funds to ensure that the transition is as fair as possible for everyone involved. This is especially true for people in their 40s and 50s.

How the current money will be allocated and how much investment risk will be taken in the future depends on the individual pension funds.

first room

Debate does not end with voting. The Senate will begin deliberating the bill on January 17 next year. It almost certainly has a majority in the Senate, as PvdA and GroenLinks also voted for it.

Opponents voiced their objections before the vote. SP MP Van Kent once again spoke of a “casino pension”, MP Omtzigt spoke of a pension based on “luck or bad luck”.

If the Senate approves, the law could enter into force on July 1, 2023. The funds have until 2027 to transfer their participants.

Source: NOS