A lifetime of working,
that sounds dramatic
Blog by
Marc Berger
Still, it’s a fact. We have to keep working longer and longer. Early retirement is often no longer financially feasible. Less than 10 years ago, employees in the Metalektro sector could, under certain conditions, make use of an early retirement scheme from the age of 61. Nowadays, you’re lucky if it’s financially possible to retire a little ‘early’—maybe at 65 or 66. For a large group of employees, this is becoming increasingly difficult. This is partly due to the increase of the state pension age to 67 years and 3 months from 2022, and the lack of pension indexation in recent years. How do we (vitaly) reach retirement age? And what if retirement becomes difficult to reach? Due to age, alone or in combination with the (type of) work…
Vital and productive until retirement
So what is possible in order to remain productive until retirement? Companies and employees alike are struggling with this question. At MEPD, we notice that especially employees in physically demanding jobs can no longer cope, or are at risk of falling ill. Sustainable employability is the buzzword of recent years. Investments in development, education, and health should ensure that people remain employable for longer—and more effectively. All this alongside ongoing automation.
But what if...
But even this does not provide a solution in all cases for late-career employees. MEPD then tries, together with companies and employees, to find alternative solutions. A way in which employees can still reach retirement. In such a way that both the company and the employee are satisfied with the outcome.
The options when it becomes too much
Is the work simply becoming too heavy? The workweeks too long? What are the options then? As an employee, you can of course discuss working less, for example four days a week. But this has consequences for your income, pension accrual and social security. That’s why, in various sectors, schemes have been created to make working fewer hours while keeping full pension accrual possible. One such scheme, the generation pact, is currently under discussion in the ongoing collective bargaining negotiations between employers and unions in the Metalektro sector.
Generation Pact. Partial Retirement. MUP.
What is a ‘generation pact’? For example, you work 80%, receive 90% of your income, and your pension accrual continues at 100%. On the other hand, this also creates more permanent jobs for young people. Another option is to make use of partial retirement. In this case, the pension for the reduced working hours is taken early. If, unfortunately, it is still necessary for older employees to leave, or if solutions like the generation pact or partial retirement are not suitable, then a customized (MUP) scheme via MEPD may be the answer. This scheme falls under outplacement.
Tailor-made solution
A scheme with MEPD can, on the one hand, be the solution for the company to part ways with an employee relatively cost-effectively and in a respectful manner. On the other hand, it allows the employee to reach (early) retirement in good health with a guaranteed income and full pension accrual. The employee then becomes employed by us, at Stichting MEPD, and is guided until (early) retirement: we call this the MUP scheme.
Want to know more?
Whatever you choose, whichever scheme or combination of options, it is always individual custom work. Want to know more or receive non-binding advice? Please feel free to contact me.
Marc Berger
Project Manager MUP
and Secondment
I deal with employment law matters and contracts for secondments and the MUP scheme.
