Chapter

Pension Reform

Jeroen J. M. Kremers

in Social Security Pension Reform in Europe

Published by University of Chicago Press

Published in print January 2002 | ISBN: 9780226241081
Published online February 2013 | e-ISBN: 9780226241913 | DOI: http://dx.doi.org/10.7208/chicago/9780226241913.003.0011
Pension Reform

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The pension system of the Netherlands consists of three pillars: (1) a state-financed basic pension at minimum wage level, supplemented by (2) a collective pension financed by employees and employers typically at a level of 70 percent of prepension gross earnings (compulsory pension funds); and (3) an old age provision financed by an individual person (free choice of saving, investment, and life insurance products). The basic pension is financed on a pay-as-you-go basis through premium payments as well as through the general government budget, while the financing of both of the supplementary pension components is funded on a capital basis. Section 9.2 of this chapter summarizes the financial challenges for the Netherlands pension system given the prospective population aging. Section 9.3 discusses the main features of the three-pillar system, while reform issues are considered in Section 9.4. A commentary and discussion summary are also included at the end of the chapter.

Keywords: premium payments; state-financed pension; collective pension; pay-as-you-go system

Chapter.  10601 words. 

Subjects: Public Economics

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