A new pension scheme is being introduced. What does that mean for you? In this PensionUpdate, we talk to Marc Obrie, who is involved in the consultations about this new scheme on behalf of the Works Council.
‘Pension is a deferred salary,’ Marc explains. ‘Whatever the new pension scheme may be, the most important issue for the Works Council is that the value of pensions is not affected. On top of that, we want to keep it as simple as possible for our people. Understanding pensions is hard enough without having to become familiar with three different schemes. We are now looking at the feasibility of introducing one new scheme for all employees. But this is not as simple as it seems’.
The key word is ‘together’
The umbrella working group meets very regularly together with representatives of the employer, the Works Council and the pension fund. Marc recounts: ‘The wishes of all representatives are on the table. If we can work things out together, we can proceed quickly. Frankly, there are still some challenges ahead, especially in preserving the value of the current pension, as I mentioned’.
Diligent decision-making
Time flies. The working group wants to make a final decision on the new pension scheme in early 2023. ‘But we won’t let ourselves be rushed. We believe that it is important to make decisions carefully and give all groups an optimal choice. Retirees are currently not involved in the consultations. We have agreed, that we will invite them when we address topics that concern them’.
Pension awareness is important
Both Dow Pension Fund and Dow as an employer invest a lot of time into communicating about pensions. Despite this, the Works Council finds that the level of knowledge among employees is limited. Marc explains: ‘Information is not retained. For many employees, retirement is something remote. We will organise information sessions when the new pension scheme has been agreed. This always worked well in the past. Maybe we need to keep repeating the information to increase awareness’. Finally, he has a message for all readers: ‘Don’t only rely on what the employer, Works Council and pension fund tell you. Become familiar with what is about to happen’!