The current pension schemes in the Netherlands will soon be replaced by a new pension scheme. The Future Pensions Act (WTP) regulates this new pension scheme. Tata Steel must also switch to the WTP. The employer and the unions have been working intensively since 2023 to make agreements about what the WTP pension scheme will look like for Tata Steel.
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What have we done so far?
The pension scheme according to the WTP is fundamentally different from the current pension scheme in a number of essential aspects. According to the WTP, we have to make a number of choices that determine what the pension scheme for a company or a sector will look like. We have also done this for Tata Steel in the past 1,5 years.
The agreements we have made must be included in a so-called transition plan. We must then submit that transition plan for assessment to DNB (De Nederlandsche Bank).
We have almost completed the transition plan for the pension in July 2024. The only thing we still had to agree on was the amount of the pension premium and how long we would conclude the pension contract between the unions and Tata Steel. On these two points, a spanner was thrown in the works in July 2024.
Our commitment is to keep the pension premium the same as it is now when we switch to the WTP: 29%. Tata Steel wanted to agree on a lower pension premium, because it expects that the same pension results can be achieved in the WTP with a lower pension premium. De Unie and her fellow unions disagree. The new pension law is based much more on chances than on certainties. A higher pension premium gives a greater chance of a comparable or even better pension. That is why the unions are sticking to 29%. In the meantime, the employer has agreed to a pension premium of 29%.
Normally, unions agree on pension schemes with a term of 5 years. Given the financial situation of Tata Steel, we have proposed a term of 3 years to the employer. So that we are also able to evaluate after 2 years how the new pension scheme works out in practice.
Tata Steel wants to agree on the new pension scheme for 2 years. De Unie and her fellow unions find that too short. You have to evaluate how the new pension scheme works out after 1 year. We find that an unrepresentative period.
In short: we are almost there, but it now depends on the length of the pension contract.
What now?
We cannot complete the transition plan now. In that transition plan it states that we want to switch to the WTP on 1 January 2026. The chance that we will meet that date is getting smaller by the week.
According to the law, the latest transition date is 1 January 2028. So there is no immediate man overboard. But it is downright disappointing that Tata Steel is letting it hang at this point. After all, as unions we are already prepared to shorten the term of the pension contract by 2 years to a 3-year contract.
De Unie and her fellow unions will soon discuss the situation with each other and with the union-wide Pensions working group. We will also discuss the strategy on how we can best deal with this towards your employer.
As soon as I know more about this, I will inform you.
Would you like to know more about what the new pension scheme will look like?
As indicated, the transition plan is almost complete. As soon as it is ready, we will submit (a summary of) the plan to the members for a vote. After all, pension is an important employment condition, so you can then cast your vote on it.
Now pension is a complicated subject for many. We have therefore made an extensive presentation to explain the current and future pension scheme in a simple way. The plan is to present this explanation to the members of De Unie (and other interested colleagues).
We are curious whether you would like to receive the explanation when we put the summary of the transition plan to the vote, or whether you are already interested in hearing the story. The members have received a response form to indicate their preference.
Questions or remarks?
Do you have any questions or comments about this message? Please contact the advocate Hans Korver. He can be reached by email hans.korver@unie.nl or call 06-5252 2073.
