Draft law threatens pension management

30th June 2010, Comments 0 comments


Caretaker Dutch Social Affairs Minister Piet Hein Donner is warning MPs not to vote to give retired people too much influence over the management of their pensions.

The free-market liberal VVD and the democrat D66 parties have put forward draft legislation aimed at giving pensioners more control over pension management. The measure can expect majority support from other parties on Thursday when parliament votes on it.

Mr Donner says too much influence wielded by one group could hamper the decision-making process of pension institutions. He points out that employers and unions, who earlier this month reached agreement aimed at safeguarding pensions, entertain similar worries.

On Tuesday, he told MPs “balanced management” was what was needed to ensure that saving for a pension remained affordable despite financial market crises and an increasingly aging population. It is feared that pensioners voting on management boards could for example block measures aimed at limiting premium hikes.



© Radio Netherlands Worldwide

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