Pieter Holbrouck - Employee Benefits & Healthcare Manager
The De Croo government has reached consensus about several topics which may have a huge impact on both your statutory pension (first pillar) and supplementary pension (second pillar). We gladly summarize the most important topics under scrutiny by our Minister of Pensions, Karine Lalieux, in the coming years, with the aim of reforming the Belgian pensions landscape.
Firstly, the government acknowledges the rising ageing expenditure and thus need to increase the effective career duration, especially for older employees. Measures such as the part-time pension, soft runways as well as education and reorientation during the career, will be encouraged as a means to guarantee the affordability of our first pillar. Also, the government seeks to reduce the differences between the three systems (civil servants, employees and the self-employed), among others by increasing the minimum pension of both employees and the self-employed to about 1,500 euros net. Within the current system a minimum career of 30 years as an employee and/or self-employed is the condition for entitlement to the minimum pension, and at that exact moment entitlement to 2/3 of this minimum pension. The current system allows for those 30 years of career to include assimilated years; however, the government aims to include an additional condition of effective employment. Note that the pension bonus is also reintroduced for all three systems to raise the employment rate at the end of the career.
The first pillar continues to be under pressure and therefore, further expansion of the second pillar is encouraged. In general, the De Croo government wants every employee to build up a supplementary pension through contributions of at least 3% of their gross salary. In our experience, many employers today are saving less or no supplementary pension at all for their employees. Nevertheless, if you wish to expand the supplementary pension of your employees, do not forget to take into account the harmonization of blue- and white-collar workers. Another topic on the agenda of the De Croo government are the costs of administering a second pillar pension scheme. What measures (if any) to be taken are subject to further scrutiny.
Do you wish to have a clear and transparent overview of your cost structure? You do not have this insight today? Please do not hesitate to contact us!