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edundancy scheme by employers. The starting date for this
measure, which has been debated for some time, is July 2003, but
much will depend on the plans of the new Government.
3.3.4. Limited duration of unemployment benefits
The duration of receipt of unemployment benefit will possibly be
limited to one year. The intention was that this reform be enacted by
April 2003, but the fall of the Government caused a delay. After the
expiration of the wage-related benefit scheme a person may be
eligible for a continued benefit. This benefit represents 70% of the
legal minimum wage instead of 70% of the person’s own (last
earned) wages. For persons younger than 57.5 years on the first day
of unemployment this benefit is currently limited to 2 years, whereas
persons over the age of 57.5 are entitled to a benefit for a maximum
period of 3.5 years.
3.3.5. Continued employment after the age of 65
The intention is to offer workers more leeway to continue working
beyond the age of 65, e.g. part-time. One method of achieving this
goal is tax deduction. Since 1 April 2002 workers aged 57 and up get
an extra tax deduction on their wages, resulting in higher net wages.
The deduction increases with age and also applies to workers over 65
years. The maximum deduction is obtained if the worker earns
100% of the legal minimum wage.
3.3.6. Raising the age of entitlement to a State pension
So far no clear plans exist in the Netherlands to raise the age for
entitlement to a State pension (AOW), but every now and then this
debate takes place (e.g. with reference to Sweden where the age of
retirement is related to the life expectancy rates of one’s age cohort).
According to the Trade Union Confederation, high officials in the
Government are currently promoting the increase of the pension
age in view of the current negotiations on a new Government
coalition (after the elections on 22 January 2003). The FNV strongly
opposes the initiative and states that policies for older workers are
starting to work now and that there is still much to gain among the
age group of 55-65 year olds. These persons should be facilitated to
extend their participation in the labour market in a healthy way.
3.3.7. Promoting the transformation of early retirement
schemes into flexible pension schemes
The Government has already been promoting this changeover by
withdrawing the fiscal advantages of early retirement schemes. It is
expected that replacing early retirement schemes with flexible pension
schemes will result in a 10% increase in labour market participation
rates among older workers in the coming years.
3.3.8. Optimising pension schemes
The Government aims at submitting a new, modernised Pension Act
to Parliament in the spring of 2003. Moreover, consultations and
negotiations have started between the Government, the social
partners and representatives of interest organisations of older
people. The issue at stake is to guarantee “future proof” pension
schemes without endangering a moderate development of wage
costs. The Government is fairly positive on the finance structure of
the Dutch pension scheme (though 138 of the 1000 pension funds
Spring 2003 | European Employment Observatory Review 131
Trends
have been said to show insufficient margins). A further reduction of
the national debt is to be used to create budget surplus which can be
used to cover a part of the increasing costs of the State pension
scheme. As well as a State pension, 91% of employees are “building
up” a so-called additional pension (in 1985 the figure was 85%).
Government and social partners insist that as many people as
possible acquire an additional pension scheme. The Government
intends to include a provision in the new Pension Act that prevents
people from being excluded from these additional schemes (the
actual enforcement of this clause will depend on the extent to which
social partners manage to achieve this goal). An important point
concerns the decreasing returns of the (sectoral and company)
pension funds due to the unfavourable developments within the
stock market. Between 1995 and 1999 returns were very high
(exceeding 11%), but in 2000 returns were limited and in 2001
slightly negative. As a result pension premiums, which have been
very low in the past, tended to increase again. Organisations of
older persons have repeatedly demanded a say in the management of
pension funds and they insist on being involved in new legislation in
this area. On 12 February 2003 the employers’ associations and
trade union confederations united in the Labour Foundation 6 on the
one hand and the Co-ordination Institution of Joint Organisations
for the Elderly (Coördinatieorgaan Samenwerkende
Ouderenorganisaties or CSO) on the other hand have concluded an
agreement on further improvement of pensioners’ co-determination
concerning the implementation of pension schemes.
3.3.9. Lifelong learning and life-course-friendly policies
OSA concludes in its 2001 Labour Supply Trend Report that older
employees still participate less frequently in training and courses
than younger employees, though their participation is growing. In
1993, 18.4% of the group aged 45-54 years old took a course,
compared to 33.6% in 2000. Positive figures are also reported for the
group employees 55-64 years old: 5% participated in a course in
1993, compared to 23.8% in 2000.
The Dutch Government and the social partners put a strong
emphasis on promoting lifelong learning and employability of
workers. These topics have been addressed in central-level
consultations and recommendations within the Foundation of
Labour. Examples are the Foundation’s recommendations on
“Working on your job” (“Werken aan je werkkring”, 1996),
“Lifelong learning at work” (“Een leven lang lerend werken”, 1998)
and “Making employability policy work” (“Werk maken van
employabilitybeleid, 2001). Employability is also strongly advocated
within the recommendations on employment terms laid down in
“More is Needed” (“Er is meer nodig”, 2001). The Foundation has
disseminated a Dutch translation of the Framework of Actions on
lifelong learning drafted at the European level by the social partners
(6 May 2002) and stresses the points of relevance for the Dutch
situation.
A central issue in the Netherlands concerns the establishment of socalled
Personal Development Accounts (Persoonlijke
ontwikkelingrekening or POR) in order to stimulate and
(financially) facilitate employees’ investments in training and
education. In the “More is Needed” recommendations, the
Foundation argues that career development plans should be
established at the company level for every employee. Each employee
6 Established on 17 May 1945, the Labour Foundation is a national consultative body organised under private law. Its members are the three peak trade union
federations and three peak employers’ associations in the Netherlands. The Foundation provides a forum in which its members discuss relevant issues in the field of
labour and industrial relations. Some of these discussions result in memorandums, statements or other documents in which the Foundation recommends courses of
action for the employers and trade unions that negotiate collective bargaining agreements in industry or within individual companies. Upon request, the Foundation
also advises the Government on labour-related topics. The Foundation is generally seen as one of the key institutions within the Dutch “Polder model” of socioeconomic
governance.