The impact of the Federal Government's delayed indexation plan has been denounced by senior citizen group OKRA and several political parties. They fear the consequences for pensioners, particularly those in residential care.
Currently, benefits are adjusted one month after the health index is exceeded to account for the increased cost of living. The health index takes into account the price evolution of goods and services without taking into account the price of tobacco, alcohol, petrol and diesel.
Last month, it was announced the indexation of benefits would be extended to three months after the threshold was passed. The move would allow the State to save money without abolishing the indexation mechanism, according to the Minister of Asylum and Migration Anneleen Van Bossuyt (N-VA).
However, according to VRT NWS, the Federal Government decided in the so-called 'Easter agreement' that this delay will also apply to pensions. An insider source confirmed this to Belga News Agency. The intention is to standardise all indexation.
Impoverishing residents
The information has sparked criticism. Senior citizens' association OKRA is concerned about the impact on pensioners. They estimate that the measure will cost the average pensioner almost €70 per indexation adjustment.
The reform will be particularly painful for residents of care homes, OKRA believes. The daily rates in these homes can be adjusted from the first day of the second month following the index threshold being exceeded. Pension adjustments, however, will not follow until a month later.
The concern was shared by opposition party, Groen. "Applying the index in full when people have to pay, but not when people receive something, is antisocial and hypocritical. That's not how the index works," said Flemish MP Jeremie Vaneeckhout. "Arizona is impoverishing its retirement home residents."
Vaneeckhout is taking a resolution to the Flemish Parliament to ensure that residential care centres can only raise their prices after the pension indexation. "It is only fair that the Flemish and Federal Governments coordinate the automatic increases in invoices and pensions," he said.
