Cabinet introduces new pension plan

By: Together Abroad 07-07-2015 11:46 AM
Categories: * Daily employment news,
The Cabinet is devising a more flexible pension plan. The so-called “average premium” (doorsneesystematiek) should be abolished, said junior social affairs minister Jetta Klijnsma on Monday 06 July 2015.

All young and old employees annually pay the same contribution and build up the same pension in this “average premium” system. However, according to NU.nl, Klijnsma calls this unfair, since the contribution of young people earns interest for longer than that of older people. Thus, more and more young people find that they have to pay way too much of pension contribution. The Cabinet also points out that the current system is not on par with the changing job market, according to rijksoverheid.nl.

NU.nl highlights that the new system offers more freedom of choice for employees and employers as well as flexibility when changing jobs.

Klijnsma sent the new plan to the parliament on Tuesday. The Cabinet aims to abolish the average premium system by 2020.


By: C. Maiko Schnelle
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