Belgium's National Bank had to fork out an extra €108.9 million last year to cover the impact of inflation on its staff pension fund, more than tripling the usual amount that the bank contributes to its pension pot annually.
As reported by economic newspapers De Tijd and L'Echo, which quote from the bank's latest company report, last year the National Bank paid a total of €148.4 million to cover pension costs for 1,200 staff members.
This consisted of the "normal" contribution of €39.5 million, and an additional €108.9 million to cushion the effect of a sharp rise in inflation in 2022.
Employees of the National Bank benefit from an additional pension on top of their statutory one, and it was the cost of this extra pension that saw a dramatic increase last year, the papers noted.
The National Bank's company report explains that the additional €108.9 million was to "fund the defined contribution pension plan of a portion of the staff." It is worth noting that a significant proportion of the National Bank's staff are nearing retirement age.
A report prepared by the National Bank last year highlighted that soaring spending in Belgium's State pension system "poses a significant risk" to its long-term financial sustainability.
