Chamber approves penny index, pension reform and energy support, Jambon defends new pension rules: “We do this to keep pensions affordable” | News

The federal parliament voted last night pension reform approved. Minister of Pensions Jan Jambon (N-VA) explains the new pension rules again.

“We do this for pensions affordable ,” the minister concludes.

According to the socialist trade union ABVV commits the federal government a serious and expensive mistake with the approval of the penny index. The social partners had one for this purpose alternative on the table laid, but that was swept aside by the federal government.

“For the first time in years, we are reaching a firm agreement with employers on our core business, wage determination. It is crazy that people are ignoring this, while it better protects employees against loss of purchasing power and yields more money for the government than the cents index,” she said.eg ABVV chairman Bert Engelaar in a response.

“This means a significant loss of purchasing power for some benefit recipients and for half of the employees in Belgium,” said Engelaar. “Especially young workers, still far from retirement, will lose many thousands of euros in purchasing power over their entire career.” According to the ABVV chairman, the penny index also affects the wage scales, “which means that they have to be renegotiated at sector and company level”.

The ABVV is investigating further, just as it did with the pension law legal action. The union believes that the effect and impact of the penny index should also be evaluated (in)direct discrimination to possibly go to the Constitutional Court to step.

The Federation of Belgian Enterprises (VBO) responds satisfied on the new one pension lawbut at the same time it is sharp for the approved cents index. The employers’ organization mentions the pension reform “a necessary step to keep rising pension expenditure under control” and also sees greater fairness between the different pension systems, employees and generations.

“It is positive that this pension reform is finally coming, but we must also dare to honestly say that we are here twenty years ago should have already started,” says VBO CEO Pieter Timmermans.

About the penny index the judgment sounds a lot more critical. The VBO responds “extremely disappointed” on the approval of the new rules. “The penny index is essentially one flat tax increase to the detriment of companies”says Timmermans. “People continue to stubbornly refuse to behave better and more alternatives to take into consideration.”

The socialist trade union ABVV prepares together with the other unions then a cancellation appeal against the law for the Constitutional Court. That request would be submitted at the end of this year, the ABVV reports. “The new pension law looks good legally shaky. What was decided today is one selective saving where permanent employees, precarious careers and part-time working women pay a heavy bill. People with a model career and the self-employed remain out of harm’s way,” the union says.

According to chairman Bert Engelaar bThe Arizona government also shows with its reform that “no respect whatsoever” has for the employees in our country. “It is and remains a pure pension savings that retroactively revises the rules and at that women discriminates. They cannot go back in time and “adjust their careers,” he says.

The ABVV expects the Constitutional Court to take action 2028 will rule on the case.

Business organization Unizo reacted last night with “very disappointment” to the approval of the Program Act in Parliament, which, among other things, introduces the penny index.

The social partners had this in mind an alternative put on the table, but that was taken off the table by the federal government swept. “Unizo has serious questions about the role that social partners can still play,” it sounds disappointed.

Last month representatives of employers and employees concluded what they described as a “historic” agreement on an alternative to the penny index. In their proposal, electricity and gas prices would be calculated in a different way in the index, so that it would rise less quickly.

But the government swept those ideas off the table and nevertheless continued with the penny indexwhich the House has now approved. Unizo therefore asks that the cents index be adjusted “where possible”.

The plenary Chamber gave the green light on Thursday for the energy support that the government is providing for the next three months. The opposition repeated earlier criticism of the interventions.

The federal government decided last month to… to release 80 million euros for energy support, mainly aimed at employees who travel to work in their own car. This is a tax incentive for employers to increase their mileage allowance or introduce one.

Such encouragement will also be provided for the increase in the fixed kilometer allowance for business travel. Finally, the government puts 15 million euros set aside for social funds for oil and gas.

The measures apply for three months from May and received the green light in Parliament on Thursday. The majority parties voted in favour opposition abstainedwith the exception of Vlaams Belang, which voted in favor.

The House plenary also approved the Arizona government’s pension reform on Thursday night. That reform is one of the largest construction sites of the De Wever government. With the reform, the government wants to strengthen the link between work and pension and interventions are necessary to keep the system affordable.

It is the most striking aspect bonus-malus system: those who work longer receive more pension, those who have not accumulated enough years of work and still retire receive less.

The plenary Chamber gave the green light to the Program Act on Thursday night, containing the penny index. That happened majority against opposition. The vote was preceded by a long parliamentary process.

The most striking measure is the cents index. Anyone who earns more than 4,000 euros gross (or receives more than 2,000 euros gross pension or benefit) will receive a capped indexation above that amount, with the first 2 percent of the index no longer applicable. If the index is 3 percent, you will still receive 3 percent indexation on wages below 4,000 euros, but only 1 percent above that.

the program law – including the penny index – and the pension reform are about to be approved in parliament, but opposition party PVDA has just announced that it will go to the Constitutional Court.

“The reform not only lacks support in society, it also lacks a solid legal basis. On several points it collides head-on with the Constitution,” says PVDA MP and pension expert Kim De Witte.

Also the socialist ABVV previously announced that it would go to the Constitutional Court once the pension reform has been approved.

To be seen as normal the penny index and the pension reform still approved in the late hours. “The vote will take place late at night,” says political journalist Hannelore Simoens (VTM NIEUWS) from the federal parliament.

The penny index applies to wages above 4,000 euros gross. The amount above this is not indexed up to 2 percent. This normally happens twice: from June 2026 and again from January 2028.

MR chairman Georges-Louis Bouchez wants to participate in a budget conclave together with the other party leaders of the majority. He said this on Thursday in the corridors of the House.

The De Wever government is leaving looking for a restructuring of 5 to 7 billion euros by July 21, depending on the source. Bouchez advocates approaching these conversations in the same way as government negotiations.

“Let’s lock ourselves away for a week or two and negotiateand then at least everyone will support the measures. Otherwise you will get the usual ‘cinema’ again, with party leaders who oppose certain measures.”

Bouchez, together with CD&V chairman Sammy Mahdi, opposes the penny indexwhich concerns them must be put back on the table in the budget discussions.

Anyone who wants to implement such a major restructuring as the current government always will having to take measures that are not going well on one side or the other of the political spectrum. Prime Minister Bart De Wever stated this in Parliament on Thursday. “Restructuring in this country is not a walk in the park.”

During the weekly question time, the Prime Minister was questioned by various opposition parties about the budget measures and – again – about the penny index. That measure is normally approved in the late hours. But recent polls show that less than a third of voters in Flanders, Wallonia and Brussels support the penny index.