Retirement age will increase to 67 in Dutch postal service

[POSTMAN]

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Retirement age will increase to 67 in Dutch postal service


Dutch postal service PostNL is raising its retirement age to 67, as part of a raft of changes to its under-funded pension system.

The company has reached agreement with trade union negotiators on the arrangements, along with the PostNL/TNT pension fund Stichting Pensioenfonds PostNL, after “intensive” dialogue since December aimed at a “future-proof” approach to the pension deficit.

The new arrangements will phase out PostNL’s unlimited obligation to provide funding for deficits. Instead, 1.25% of pension obligations, along with a EUR 300m pot of funds, will be used to prevent any benefit cuts in the event of the pension fund falling into the red.

PostNL has pledged EUR 150m to avoid funding shortfalls this year, paying this amount and any payments from the EUR 300m pot over the next five years.

The changes will need to be approved by the members of the trade unions, which include Abvakabo FNV, BVPP, CNV Publieke Zaak and VPP.

But, they should come into effect from 1st January, 2014.

“Good balance”

PostNL currently employs 66,000 people including its international operations, delivering 8.5bn items of mail each year.

The company’s pension fund slipped to a 99.8% coverage ratio in 2011 from a 107.4% level in 2010 thanks to a fall in long-term interest rates in the money markets, but only recovered to 102.2% in 2012 against a 104.1% minimum requirement.

PostNL was ordered in December to pay EUR 83m extra into the pension fund to get it back above the minimum requirement, with a EUR 49m payment suspended. Negotiations with the unions since December have aimed to find a way for PostNL to avoid these top-up payments in future.

In a statement agreed by all sides, PostNL and the union negotiation teams said: “We have achieved a good balance in our shared objectives in terms of the sustainability of the pension arrangement, with clarity regarding the funding and certainty for PostNL employees, inactive participants and pensioners.


“The effects of the agreement in principle have been examined for all stakeholders and are acceptable to the parties.”

The changes come as the PostNL and TNT Express pension funds are separated next year, depending on a final agreement. The two companies demerged back in 2011

[UnhappyGremlin]

Dutch postal service PostNL is raising its retirement age to 67, as part of a raft of changes to its under-funded pension system.

Hope no one in RM has read this.
Might give them ideas.....