NETHERLANDS - Dutch social affairs minister Henk Kamp is planning to submit a bill to increase the official retirement age by one year to 66 in 2020.

In a letter to parliament, Kamp said his bill would also include limits on the "fiscal leeway" for pension saving.

Kamp's announcement comes as Agnes Jongerius, chairwoman of the largest representative body of unions, the Federatie FNV, called for a suspension in negotiations between employers and employees about the elaboration of last year's Pension Agreement.

The reason for the suspension, which would be for at least two weeks, is the union's increasing resistance to an outcome that includes a transfer of all risks to pension funds' participants.

Jongerius said she wanted to consult rank-and-file members about the issue, as well as on the idea of increasing labour participation by older workers.

The negotiations about a final Pension Agreement have been dragging on for months, and the cabinet is keen to get clarity soon, as it needs to reach its budget targets.

Limiting the tax-deductibility of pension contributions is expected to generate €700m a year as of 2013, according to the government's estimate.

Minister Kamp has said he will remain available for consultation with the FNV and that he is prepared to adjust his plans in the event that the social partners reach an agreement.

Meanwhile, Liberal Democrat MP Fatma Koşer Kaja has urged the cabinet to take the initiative against further delay.

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