Most pensions won't decrease in 2021 as negotiations draw to a close

The pensions of most Dutch residents are unlikely to decrease next year, the Ministry of Social Affairs announced on Friday. Following prolonged discussions with employers and unions, the decision marks the completion of the Cabinet's new pension deal taken in the wake of the Covid-19 crisis.

"In view of the very exceptional economic situation, the Cabinet has promised to use last year's exemption scheme this year," the ministry announced in a statement. It added that, in effect, this leaves pension funds with a funding ratio of above 90 percent without the obligation to reduce their pensions.

According to the ministry, the details of the pension system will be made available in the coming period following "constructive" discussions that lasted well into the night on Thursday.

However, pension funds with a funding ratio below 90 percent will still be required to cut their pensions, sources from the ministry told the public broadcaster NOS on Friday.