Union federations, employer groups and the government agreed in June to changes to the pension system which would give pension funds more scope to invest in risky assets, while also raising the retirement age to 67 by 2025, from 65 currently.

A Dutch union voted against the deal earlier this month, concerned by plans to transfer more of the investment risks to employees and criticism over proposals to cut pension payments for people who still stop work at 65.

In an interview with newspaper De Volkskrant on Saturday, Minister Henk Kamp said he was prepared to help lower-income earners by reducing the planned 6.5 percent cut in pensions for people who opt for early retirement.

Kamp gave no hint, however, that he would amend proposals regarding investment risks, telling the paper that employers and employees can determine how much investment risk they take on.

"Also, the present system will remain in force. The pension agreement sets up another (system) next to it. Funds can choose which system they want to use. If the FNV Bondgenoten likes the present system so much, it can choose for that," Kamp said.

Although the FNV Bondgenoten union voted against the pension deal earlier this month, three union federations, FNV, CNV and MHP, are still in favour of it and hope to get clarity from all of their member unions next month.

Kamp also stressed on Saturday that if his olive branch over early retirement is rejected by unions he will push ahead with earlier plans outlined in the coalition government agreement.

Copyright Reuters, 2011