Brussels (Brussels Morning Newspaper) – Belgium’s pension reforms begin in January 2025, raising the retirement age to 66 and changing minimum pension rules, causing tensions.
Pension reforms in Belgium are causing a lot of controversy. In 2023, they spent about €65 billion on pensions for 2.6 million retirees. Bart De Wever, the N-VA leader, wants to cut these costs by €3 billion. He says this is important for the budget and the future of the pension system. Many people disagree with these cuts. They worry that it will affect retirees and those in need.
How will Belgium’s pension reforms affect civil servants compared to private sector workers?
Civil servants will have to work longer before they can retire. Some jobs, like teachers and train drivers, allow earlier retirement. Train drivers can retire after 36 years. This may change, and pensions will be lower over time. Civil servant pensions are based on the last ten years of salary. Salaries often start low and increase with experience.
In the private sector, pensions are based on the entire career. The new rules for civil servants will take time to start. Those retiring soon won’t see much change, but those with more years left will lose money. The way pensions are adjusted may also change.
Professor Javier points out a big difference in pensions for public and private workers. Many people compare these pensions but forget that private workers have extra savings plans. These plans, like group insurance, help them save more for retirement. Civil servants do not have these extra options because their pensions come from the government. This makes it unfair. When trying to balance pensions between the two sectors, it is important to consider the extra benefits private workers receive.
Professor Javier says that to make pensions fair, the government should add extra pension plans for civil servants. This would cost a lot of money because new savings plans must be created and funded. He thinks these extra pensions will not be part of the current reform plans because the government wants to save money.
How will Arizona’s pension rules affect workers?
According to ACV, Arizona’s pension rules will affect many people, not just civil servants. In the private sector, workers must work 35 years to get the minimum pension instead of 30 years. The way they count those years will also change. Times when someone is unemployed or disabled will no longer count for pension rights.
Only time spent caring for children or family will still count, but it will give a smaller pension. Unions worry that these changes will affect women because many take leave to care for their families. Professor Javier says these rules look fair but can affect women more than men.
Stalled government negotiations in Belgium
Negotiations for a new government in Belgium have faced many problems since the 2024 elections. King Philippe appointed Bart De Wever to lead the talks for an “Arizona coalition.” This coalition includes N-VA, MR, Les Engagés, Vooruit, and CD&V. However, the discussions have often stopped because the partners cannot agree. They have argued about socio-economic reforms, especially pensions.
The party Vooruit is very against the proposed cuts to pensions. After many months of no progress, De Wever offered to resign in November 2024. The King, however, gave him more time to talk with the coalition parties.
As of January 2025, there is still no agreement. This situation leaves both the government formation and pension reform uncertain. Many people are angry about the proposed changes. Critics are calling for a fairer solution. Meanwhile, supporters of the reforms say it is urgent to solve financial problems.
