Dutch pensions federation wants auto-enrolment for self-employed<\/p>\n\n\n\n
The new pensions law proposed by the Dutch government provides insufficient room for pension funds to cater for self-employed workers, the Dutch branch organisation of pension funds, Pensioenfederatie, has warned. It has called for a ???significant change??? to the draft legislation, including the option of auto-enrolment.<\/p>\n\n\n\n
Several large sector funds have voiced their interest to start trials offering pensions to self-employed workers under the new pension law which will pave the way for a switch to a defined contribution (DC) pension system.<\/p>\n\n\n\n
The concept law that was presented last December allows for limited trials to grant self-employed workers access to second-pillar pensions. However, the proposed legislation lacks detail and contains a provision saying any pilot trials will have a maximum duration of four years. ???A missed opportunity,??? according to the Pensioenfederatie.<\/p>\n\n\n\n
The lack of detail is forcing pension funds that want to start their self-employed trials to wait even though they are ready to give it a go, said Jos?? Meijer, director of the Pensioenfederatie. He is therefore calling on Social Affairs minister Wouter Koolmees to speed up the legislative process.<\/p>\n\n\n\n
Among other things, the lobby group wants the government to explicitly allow for auto-enrolment with an opt-out option. ???In the current draft law, this is not made possible,??? Meijer said.<\/p>\n\n\n\n
The opt-in variant, which gives self-employed workers the initiative to save for their pension, has proved to be much less successful than auto-enrolment in other countries, she added.<\/p>\n\n\n\n
???In a phase of experiments, it???s important to allow for a range of options for voluntary participation in pension funds, in order to be able to see which one works best for the self-employed in the Netherlands,??? she continued.<\/p>\n\n\n\n
In the Netherlands, most self-employed save very little for their pension and primarily rely on the state pension AOW in their old age. According to the government, only half of self-employed without access to second pillar pensions currently save for their pension in the third pillar.<\/p>\n\n\n\n
A study by pension think tank Netspar has found that households, including those with at least one self-employed person, are much less likely to reach a retirement income of 70% of the median salary.<\/p>\n\n\n\n
Besides the auto-enrolment option, the Pensioenfederatie is also asking the government to provide for a ???suitable pension product for the self-employed??? and a higher tax-free allowance to incentivise the self-employed to save for their pensions.<\/p>\n\n\n\n
The organisation also wants it to be made easier for workers that leave their job to become self-employed to continue saving for their pensions with their former employer???s scheme. Currently, few self-employed choose this option because it???s often not possible for them to decide on the level of their contributions.<\/p>\n\n\n\n
On-going discussions<\/p>\n\n\n\n
Minister Koolmees said the government is currently ???in discussions??? with the Pensioenfederatie, pension providers and the association for insurance companies about the design of the pension trials for self-employed workers.<\/p>\n\n\n\n
???In this framework, we also talk about the possibility of auto-enrolment with an opt-out option. The other adjustments the Pensioenfederatie wishes to see are also subject of these discussions,??? said Koolmees.<\/p>\n\n\n\n
The government is planning to send its final draft of the pension law to parliament some time after summer.<\/p>\n\n\n\n
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