Reform of Belgian pension system

15. May 2024

On 4 April 2024, the Belgian Parliament approved the reform of the Belgian pension system. The reform introduces a new pension bonus, sets an additional condition and upgrades part-time employment for the minimum pension, and limits the perequation of the civil service pension.

Pension bonus

The new pension bonus is a net bonus that comes on top of the retirement pension. One is eligible for the pension bonus if one works longer after the earliest possible retirement date. The pension bonus can be accrued for up to 3 years. Accrual stops as soon as one receives the retirement pension. Currently, a transitional period applies; one can only accrue the pension bonus from 1 July 2024, and one cannot retire on a rest pension until 1 January 2025 at the earliest to be entitled to the pension bonus.

The amount of the pension bonus depends on a number of factors, including the length of one’s career, how long one accrues the pension bonus, whether one continues to work part-time or full-time, and how one has the pension bonus paid out (once or monthly). Thus, the pension bonus can amount to a one-off net bonus of 33,975 euro or a monthly net bonus of 140.40 euro. A number of calculation examples can be found on the website of the Federal Pension Office: https://www.sfpd.fgov.be/nl/recht-op-pensioen/pensioenbonus.

It is currently unclear how the Dutch tax authorities and the German Finanzämter will deal with this net bonus from Belgium.

Minimum pensioen

To be entitled to the guaranteed minimum pension, one must meet two conditions. First, one must have a career corresponding to 2/3 of a full career. A full career, except for miners, seafarers and flying personnel, is 45 years. This means that one proves a career of 30 years (periods worked and equivalent). Secondly, and this is the new condition, one must have effectively worked for 20 years. However, this second condition does not apply to everyone. In addition, transitional measures also apply. More information on the guaranteed minimum pension can be found on the website of the Federal Pension Office: https://www.sfpd.fgov.be/nl/pensioenbedrag/berekening/gewaarborgd-minimum-pensioen.

Civil service pension

The perequation of the civil service pension means that the civil service pension follows the salaries of active civil servants. This perequation will be limited from 1 January 2025. More information on the perequation of the civil service pension can be found on the website of the Federal Pension Service: https://www.sfpd.fgov.be/nl/kenniscentrum/perequatie.

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