The bonus-malus system introduced in 2018 to encourage municipalities to establish a second pension pillar for their contractual staff will be extended and strengthened, announced Deputy Prime Minister David Clarinval over the weekend.
According to Clarinval, the reduction in responsibility contributions will decrease from 10% to 3% of the cost of the second pillar, a measure financially supported by the federal government.
This measure is part of several others agreed upon by the Council of Ministers to “strengthen the fairness and sustainability of the pension system,” Clarinval stated.
The indexation of the highest pensions, starting from €5,250, will be limited to a modest fixed amount equivalent to the minimum pension, around €36.
From 1 July, self-employed individuals who continue working past the legal retirement age will be able to accrue additional pension rights if they pay social contributions on an annual income of at least €17,008.88, the threshold applied to primary self-employed workers. Those who prefer to remain under the current system with reduced contributions will retain this option without accruing new rights.
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Additionally, an extra 2% solidarity contribution will be applied to supplementary pension capitals exceeding €150,000. This measure will only affect pensioners whose total monthly pension (both first and second pillars) exceeds €3,225 (single) or €3,729.35 (with dependents), thereby sparing modest pensions.
Finally, the bonus-malus system introduced in 2018 to encourage municipalities to establish a second pension pillar for their contractual staff will be extended and reinforced. The reduction in responsibility contributions will decrease from 10% to 30% of the cost of the second pillar, with financial support from the federal government.
