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  • Going Dutch. Disability Reforms in The Netherlands - Aart de Geus

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    1) In 2002, the Netherlands underwent structural reforms to address issues like low growth and weak labor participation, with one goal being revising the country's 1967 disability act. 2) Reforms included reducing unemployment benefits, implementing experience rating for disability premiums, and reviewing claims for those under 50 years old. 3) The new 2006 disability act shifted the focus from insuring loss of capacity to insuring income, with various return-to-work programs and a culture shift toward ability rather than inability. The number of new claimants dropped significantly after reforms.

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    OECD:s vice general-sekreterare Aart de Geus presentation under Arbetsmarknadskonferensen.

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    Going Dutch. Disability Reforms in the Netherlands - Aart de Geus

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    1) In 2002, the Netherlands underwent structural reforms to address issues like low growth and weak labor participation, with one goal being revising the country's 1967 disability act. 2) Reforms included reducing unemployment benefits, implementing experience rating for disability premiums, and reviewing claims for those under 50 years old. 3) The new 2006 disability act shifted the focus from insuring loss of capacity to insuring income, with various return-to-work programs and a culture shift toward ability rather than inability. The number of new claimants dropped significantly after reforms.

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    47 views6 pages

    Going Dutch. Disability Reforms in The Netherlands - Aart de Geus

    Uploaded by

    FORES
    1) In 2002, the Netherlands underwent structural reforms to address issues like low growth and weak labor participation, with one goal being revising the country's 1967 disability act. 2) Reforms included reducing unemployment benefits, implementing experience rating for disability premiums, and reviewing claims for those under 50 years old. 3) The new 2006 disability act shifted the focus from insuring loss of capacity to insuring income, with various return-to-work programs and a culture shift toward ability rather than inability. The number of new claimants dropped significantly after reforms.

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    of 6

    GOING DUTCH

    DISABILITY REFORMS IN THE NETHERLANDS

    FORES LABOUR MARKET CONFERENCE 2010


    Aart de Geus, DSG OECD
    THE CASE FOR CHANGE
    • 2002: low growth, weak participation
    • Government Balkenende (Center-Right) got a
    mandate to make structural reforms
    • Role Social Partners was key (advice, support)
    • Disability act (WAO, 1967) was discussed and
    revised since 1982 without substantial result
    • 2002: 1 out of 7 “disabled”, “mentally ill”
    STRUCTURAL REFORMS
    10 legislative programs
    • Early Retirement premiums excluded form tax support
    • New Pension Act to facilitate solid pensions (finance, communication)
    • New Life Course Plan: tax support for savings for work-life-balance
    • New Child Care Act: shift to private market with tax support for parents
    • New Social Assistance Act: financial responsibility for local communities
    • Reduction Unemployment Benefit reduction from 7,5 years to 38 months
    • New Working Time Act focuses on responsibility Social Partners
    • New Health and Safety at Work Act focuses on EU level + deregulation
    • Administrative burden program realized 25% cost reduction
    • NEW DISABILITY ACT: WAO BECOMES WIA (information campaign)
    DISABILITY REFORM: the content
    • Insurance of income, not of loss of capacity
    • 2 years: employer (70%) – employee (30%)
    • -35%: responsibility employer
    • 35 – 80%: semi unemployment scheme
    • 80+ temporary: semi unemployment scheme
    • 80+ permanent: disability pension
    • Experience rating in premiums
    • Review disabled under 50 years (45)
    DISABILITY REFORM: the process
    • 1991: first attempt, crisis, repair of reforms
    • 2002: advice Social Economic Council
    • 2002: electoral mandate, clear agenda
    • 2004: package deal with Social Partners
    • 2004/5: negotiation with Parliament
    • 2004/5: administrative hurdles
    • 2006: NEW DISABILITY ACT (WIA)
    DISABILITY REFORM: the result
    • New claimants dropped from 100,000 in 2002 to 25,000 in 2006
    • Review reduced claims with around 40%
    • No significant shift to other social security schemes
    • Disability Pensions from 70% back to 75%
    • New Medical Guidelines (how to appraise, treat, help)
    • New role for private insurance companies, collective bargaining
    • Culture shift: not what you cannot do anymore, but what you can do
    • New model: priority for social partners
    • Annex reforms: Health and Safety, Unemployment, Early Retirement
    • Remaining problems: Young Disabled without employer

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