Brussels – A planned pension reform in Belgium is facing criticism as it could lead to reduced benefits for approximately 30% of retirees, potentially decreasing monthly payments by several hundred euros. The reform, spearheaded by Minister of Pensions Jan Jambon, introduces a cap on periods of unemployment and transitional employment – known as “landing jobs” – that count towards pension calculations.
The changes, slated to take effect in 2027, aim to adjust how “equivalent periods” are factored into pension amounts. Equivalent periods refer to times when individuals are not actively employed, such as during periods of illness or unemployment, but are still credited towards their pension. The government’s proposal includes a ceiling on these periods, which is sparking concern among labor groups and opposition parties.
The political party Vooruit has voiced strong opposition to the draft legislation, calling for an exemption for individuals working in landing jobs until their actual retirement age. According to reports, the proposed changes could result in a reduction of up to €600 or €700 per month for some retirees.
“With that 20% cut, you are cutting into the pensions of people who often did not choose that themselves,” stated Ivo Mechels, chairman of the Gezinsbond, a family advocacy organization. The Gezinsbond has warned that the fresh pension measures will have a significant impact on families.
Minister Jambon defends the reform, arguing that savings will come from behavioral changes – specifically, encouraging people to perform longer – rather than directly from lower pension amounts. “Anyone who works longer will have more pension and a higher disposable income. That is the essence,” Jambon said, according to reports. This perspective contrasts with concerns raised by unions and advocacy groups about the potential financial hardship for retirees.
The reform is being rolled out in stages, with some elements already in effect and others scheduled for implementation next year. The current proposal regarding equivalent periods is on the agenda for the pension service’s management committee and will subsequently be reviewed by the federal government. The debate highlights the ongoing challenges of balancing pension sustainability with the financial security of retirees in Belgium.
Recent simulations by the Federal Pension Service (FPD) suggest that seven out of ten workers may not experience a financial impact from the reform. However, these calculations do not account for potential changes in work behavior, such as individuals choosing to extend their careers. The FPD analysis also does not factor in the planned increase in the retirement age to 66 in 2025 and 67 in 2030, which could ultimately lead to higher pension amounts for many.
