A new « social pension bonus scheme »

This measure revaluates the minimum pensions and strengthens the link between work and pension.

Within the framework of the tax shift the government has decided to allocate a budget of 25 million euros to the revalorization of the minimum pensions on top of the prosperity envelope (497 milion euros allocated to pensions during the period 2015-2016).

This Wednesday, 15th June, the bill to determine the measures for allocating 25 million euros to the lowest pensions was approved unanimously with three abstentions by the Social Affairs Committee of the Chamber of Deputies.

The text provides for a minimum pension increase by 0.7% for full-career pensioners (45 actual career years or equivalent periods) in the pension schemes for employees and self-employed persons. The increase will be put into practise by way of a ‘catch-up premium’ which will be paid in December 2016. As from 2017 the monthly pension amount will be increased.

It is to be emphasized that this minimum pension increase is an addition to the 2% increase already implemented in September 2015. Over the course of one year, we have witnessed a 2.7% increase, which equals a EUR 31 rise per month for single, full-career pensioners.

This social measure meets two objectives stipulated in the coalition agreement: (1) revaluating the minimum pensions and (2) strengthening the link between a professional career and the pension amount.

The Minister for Pensions Daniel BACQUELAINE:

“This bill introduces a new type of « social pension bonus scheme » for both men and women who despite having had a long career only receive a minimum pension. In this way the Government wants to acknowledge the efforts made by employees who despite having a full career have not sufficiently built up pension rights, and therefore only receive a minimum pension.”