THE HAGUE—The Dutch employers organisations and unions say that pension funds need more time to recover from the financial damage wrought by the credit crisis. The three-year period envisaged by parliament is deemed too short. The pension funds have lost large amounts as a result of the credit crisis and low interest rates.

Many of the pension funds have already frozen pay-outs at current levels to make up for their losses. However, this measure by itself will reportedly not suffice, and the funds will have to raise premiums or reduce pay-outs.

The unions and the employers' organisations are arguing for giving the pension funds a longer period to replenish their reserves. Social Affairs Minister Jan Hein Donner and the Nederlandse Bank (Dutch central bank) are expected to decide soon on whether they will grant an extension.

Radio Netherlands/Expatica