Pension experts commission proposes new points system

A commission of 12 experts presented a proposal to ensure Belgium’s pension system until at least 2040. The report was ordered by acting federal minister for pensions, Alexander De Croo, (Open VLD) and acting federal minister for the self-employed, Sabine Laruelle (MR), after a number of attempts to reform the system failed.

Belgium’s pension system is not only complex and outdated, it is also under great pressure because of its reliance on taxes: Those working pay for the pensions for the retired, but, in light of the ageing of the population, this system is not sustainable.

The commission proposes a points system, whereby a worker saves up points, which are later transferred to a concrete sum. Working less than full time for one year means less points, working more means more.

The points, according to the commission, give workers an idea of how much pension they can expect. The commission also proposes that people work longer, social corrections for the lowest incomes and changes to pensions for civil servants.

“There is no reason for panic,” Frank Vandenbroucke, former minister and member of the commission, said yesterday in news programme Terzake. “But the new government should take the decisions. Different people will find much to criticise in the report – the self-employed  are asked to contribute more, we will also look to other sources such as capital – but it is balanced, and it is what we need for the system to survive.”

The unions ABVV and ACV call the report “worrying”, as it touches on two principles: retirement at 65 and 45-year careers. The ministers who ordered the report insist that all stakeholders will be heard, but ultimately the new federal government has to decide on the reform.