OECD Report on Netherlands Includes Focus on Increasing Participation of Older Workers

The Organisation for Economic Co-operation and Development(OECD), in issuing its "Economic survey of the Netherlands 2008" making assessments and recommendations on the main economic challenges faced by the Netherlands, has specifically focused, among other things, on the role of older workers in the Dutch economy. Although it finds that it has made a strong comeback, the economy is now facing labour shortages, related to the greying of the population and the continued weak labour market-participation of several groups.

OECD recommendations include the adoption of incentives to increase participation in the labour market, including at older ages, so as to widen the revenue basis and, to encourage older workers, strengthen job search requirements and continue making the tax-benefit system more work-friendly.

In his remarkes at a joint press conference held with the Minister of Economic affairs, OECD Secretary General Angel Gurría said:

To further increase participation of older workers, the government should move ahead with its planned reforms and make them more encompassing. Particularly, the new levy on pensioners who stopped working before the official retirement age could be implemented faster and not be applied only to higher income levels. In addition, measures should be taken to reduce the possibility of using the unemployment benefit system, in combination with generous severance payments, as a transition into early retirement.

Sources: OECD Executive Summary (January 31, 2008); NIS News Bulletin " OECD Urges Netherlands to be Tougher on Welfare Recipients" (February 1, 2008)

OECD Issues Call for Better Protection of Occupational Pension Systems

Member countries of the Organisation for Economic Co-operation and Development (OECD) have agreed on new guidelines for governments and regulators designed to improve how certain types of pension funds are run with a view to making employees’ pensions more secure. The OECD Guidelines on Funding and Benefit Security in Occupational Pensions contain a series of recommendations concerning regulation of the funding of occupational pension plans, and in particular defined benefit pension schemes.

Issues covered by the guidelines include the funding and valuation of pension plans and protection of employees’ interests in company pension schemes in the event of their employer or the company that manages their pension plan going bankrupt. The guidelines also call on tax authorities to consider raising maximum funding levels, so as to allow pension funds to build up reserves that will protect them against a downturn in asset values.

According to OECD Secretary-General Angel Gurría, “[p]eople are living longer and need to be sure that their pensions are safe.” The guidelines "will be helpful to OECD countries to ensure that occupational pension plans offer secure retirement benefits to their members.”

Source: OECD News Release (May 10, 2007)

OECD States Governments and Businesses Erried in Pushing Early Retirements in 1990's

Virginia Galt reports in the Globe and Mail that new research by the Organization for Economic Co-operation and Development (OECD) suggests that governments and employers made a mistake, "which has returned to haunt them," by introducing early retirement schemes in the 1990s to push out older employees.

“Many older workers were induced to leave by very generous early retirement schemes, but relatively few young people were subsequently hired in their places,” John Martin, the OECD's director of employment, labour and social affairs, said at a forum in Toronto Thursday.

Now, with overall unemployment rates down but youth jobless rates still well above the international average of 6.6 per cent, employers are starting to complain about shortages of skilled labour, and policy makers are grappling with how to keep more of their experienced older hands in the work force.

Source: The Globe and Mail "Early retirement schemes a mistake, OECD says" (June 15, 2006)

OECD Issues Summary Report on Aging and Employment Policies

The Organisation for Economic Co-operation and Development (OECD) has issued a report--"Live Longer, Work Longer"--that draws out the main lessons that have emerged from the OECD's 21 country reviews in its series on "Ageing and Employment Policies." To help meet the daunting challenges posed by employment and social policies, practices and attitudes that discourage work at an older age, work needs to be made a more attractive and rewarding proposition for older workers. This report disucsses, among other things, work disincentives and barriers to employment, removing work disincentives and increasing choice in work-retirement decisions, changing employer attitudes and employment practices, and improving employability.

Source: News Release OECD (February 13, 2006)