Members vote on pension agreement

June 12, 2019 - After nine years of negotiations, employees, employers and the government reached agreement on a new pension. It is a complex agreement in which good things have been achieved, but also in which room has been left for certain things to be filled in later on. All things considered, the members instructed the VAWO board on 11 June 2019 to present this agreement to her members in a positive light.

Below we explain briefly and simply what the agreement in principle means. The full agreement, the SER advisory report, but also a Q&A on what the VCP, which includes VAWO, stands for and what its role was during the conclusion of this agreement, are attached.

What is the main content of the agreement in principle of 6 June 2019?

The five main points of the agreement are as follows:

  1. The AOW age will increase less quickly. Over the next two years, the AOW age will remain at 66 years and 4 months. After these two years, the AOW age will be increased by 8 months instead of a whole year for each year that we all age on average.
  2. For people who exercise a heavy profession, it is possible to stop working three years before the AOW pension age. In that case, they will receive less pension. Employers and employees can make arrangements for people with heavy work to stop working earlier. There will also be more money for sustainable employability and training.
  3. At the moment, there is a threat of a reduction in the pension of 2 million pensioners as of 1 January 2020. This agreement will reduce the chance of discounts in the short term.
  4. Anyone will have the option of withdrawing part of the accrued retirement pension (up to a maximum of 10%) on the pension commencement date.
  5. A steering committee of the SER will be set up, in which the government, trade unions and employers will be represented. This steering committee will re-examine a new pension system for the future. There is a draft SER recommendation for a new pension system. This advice is based on a number of principles:
    The pension must become more personal and transparent by making the accrual more in line with the premium that people contribute.

The pension will become more flexible. In years when the pension funds are doing well, the pension will increase more quickly, but when this is not the case, the pension will be reduced more quickly.

In point 5, there are still doubts about what is ultimately agreed about the new pension system. The VCP and the CMHF, to which VAWO is affiliated, consider these points to be particularly important:
The consequences of abolishing the average system and introducing an individual contribution. Ensure that all generations are compensated in a balanced way for the consequences of the change in the system. And clarity about the actuarial interest rate to be used.

Consultation of members

Members have the possibility to vote on this agreement until June 16. The results of VAWO will be included in the CMHF Members' Council on 17 June next. The majority of the associations affiliated to the CMHF will therefore ultimately decide whether the CMHF will agree to this agreement. Subsequently, the results of the CMHF will be taken into account in the VCP Members' Council of 18 June.