Employees who are affiliated with the pension fund for the construction sector can look forward to an increase of more than 14 percent on their pensions. There is “sufficient financial room” for “this substantial increase”, according to the relevant pension fund BpfBouw announced Tuesday morning. The fund states that there is the largest increase ever at BpfBouw, which has about 800,000 members.
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The increase will take effect from the new year and is possible thanks to the increase in the funding ratio. Earlier this year, pension benefits increased by 2.5 percent. Board chairman Ellie Lundgren says in a statement that she is “very happy” that pensions can increase. This will be necessary next year, partly because of the high inflation in the Netherlands.
Previously, pension benefits for metalworkers and healthcare workers were also increased. As of January 1, the pension fund for metal and technology increased pensions by 4.2 percent. Pensions for healthcare personnel will increase by 6 percent from the following year. The increases are related to the rising interest rate, with which the funds hope to be able to adjust the benefits to the high inflation.
Pension Act
The House of Representatives recently debated the new pension law of Minister Carola Schouten (Pensions, ChristenUnie). With this law, the coalition wants to reform the pension system. The proposal is an elaboration of the 2019 pension agreement between trade unions and the then cabinet.
One of the points of discussion about the new system is the investment risk: according to the law, funds do not have to build up large financial reserves. As a result, investment profits can be paid out more quickly, but losses also have a faster effect on the pension pot. Partyless MP Pieter Omtzigt, among others, advocated limiting the risk for young people.
The cabinet has a narrow majority in the House of Representatives, but not in the Senate. Therefore, the coalition depends on the support of other parties. VVD, CDA, D66 and ChristenUnie are hoping for the opposition parties PvdA, GroenLinks and SGP.
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