Octas presents three variants for the future of the disability insurance system
In pursuit of an improved disability insurance system, OCTAS (Independent Commission for the Future of the Disability Insurance System) proposed three promising variants in a report on February 29, 2024. These variants are designed to address the fundamental and structural challenges within the current system. Let’s delve into the essence of each proposal and what it could mean for employers like you.
1. Current system improvement
The first proposed variant, ‘Current system improvement’, largely retains the existing WIA system. However, several measures are suggested to simplify the system. One key change is to merge the WGA and IVA benefits into a single WIA benefit, reducing complexity. Additionally, there’s a proposal to cap the WIA monthly income, ensuring higher incomes do not automatically receive full benefits.
What does this mean for you as an employer?
The principle of ‘work pays’ is largely relinquished, potentially impacting the motivation of employees to return to work. Employers may face higher costs as all benefits, including those for fully disabled employees, are passed on. This could result in an increase in the Whk premium and overall higher costs for employers.
2. Emphasis on employment
The second proposed variant, ‘Emphasis on employment’, focuses on promoting reintegration and highlighting what individuals can still do. This is achieved by implementing longer reintegration periods, with up to five years dedicated to reintegration efforts before a final disability benefit is granted.
What does this mean for you as an employer?
This variant requires significant efforts from both employers and employees during the reintegration period. Employers can expect higher costs during this extended reintegration period. Additionally, mandating supplementary insurance could further increase the burden on employers.
3. Foundation for workers
The third variant, ‘Foundation for workers’, proposes a unified system for all workers, including employees and self-employed individuals. The government guarantees a minimum benefit for those unable to work, while supplementary insurance covers the difference up to the previous wage level.
What does this mean for you as an employer?
While this proposal may increase income security for employees, assessing self-employed individuals can be complex and may pose implementation challenges. Additionally, the higher benefits compared to the current WIA system could reduce the incentive for individuals to return to work.
As we await further developments in the disability insurance system, it is crucial for employers to stay informed about these proposed variants and their potential impact on their organizations. Consyl will continue to monitor this and inform employers as necessary.
“OCTAS was established on November 25, 2022, by Minister Van Gennip. With the advice now provided, the commission fulfills its mandate to conduct a problem analysis and present multiple solutions for the fundamental structural challenges within the current system. Alongside commission chair Roos Vermeij, the commission includes Bruno Bruins, Sita Mohabir, Maarten Lindeboom, Josine Westerbeek-Huitink, Neele Kistemaker, Pierre Koning, Irmgard Borghouts, Wout de Boer, and Harry van de Kraats“.