As expected, the House of Representatives voted overwhelmingly in favor of a new pension law. In the last day of the meeting before the winter break, the coalition parties voted in favour, PvdA and GroenLinks agreed to give the law the ‘benefit of the doubt’, and SGP and Volt also supported the proposal.
This means that the law that makes the new pension system possible is a step forward. The legislative treatment leading up to the vote was unusual. The Chamber spoke for dozens of hours about the technically very complicated law. The House approved a number of important amendment proposals on Tuesday. Members of parliament then voted by roll call on a reduced bill on Thursday.
Wide legal treatment
Pensions Minister Carola Schouten said in a statement that she is “very happy” that the law has been passed by the House. “This was the most extensive legal treatment I have ever experienced. And this is good, because the law has improved thanks to all these debates.
The proposal lays the foundations for one of the greatest social renewals of recent times. The pension assets (between 1400 and 1500 billion) pass from a collective fund to predominantly individual funds. Switching to this new way of accruing pensions can cost tens of billions and it is not yet fully understood how the new system will work for specific funds.
More flexible
However, there is agreement that the old pension system is no longer up to date. The new system is more flexible and better suited to the current labor market. While there are greater risks involved, according to De Nederlandsche Bank, the new system leads to a higher pension faster in many scenarios.
Support from parties outside the coalition is important, because Schouten now has to defend the law in the Senate. Coalition parties lack a majority there. The Cabinet hopes it can move the bill through the Senate quickly, because the composition of the bill will change after the Senate elections in May. The fear is that the (centre) parties that support the new law will lose seats.
The introduction of the law has already been amended several times, but is now scheduled for 1 July 2023. Pension funds have until 1 January 2027 to switch to the new system.
Source: BNR
Fernando Dowling is an author and political journalist who writes for 24 News Globe. He has a deep understanding of the political landscape and a passion for analyzing the latest political trends and news.
