The Parliamentary Committee on Social Affairs approved the Arizona government’s proposed pension reform on Tuesday evening, moving it a step closer to implementation.
Committee members from the majority parties voted to approve the proposal. Those from the opposition Anders party abstained, while Vlaams Belang representatives opted to withhold support on the government-related sections.
The proposal will now proceed to a plenary session for further review.
Reform needed to keep the pension system affordable - Jambon
The pension reform, a cornerstone of the Arizona government’s agenda, aims to strengthen the link between work and retirement.
According to Pensions Minister Jan Jambon (Nieuw-Vlaamse Alliantie, N-VA), the changes are essential to maintain the system’s affordability, as the ageing of the population renders the current model unsustainable.
The reform introduces major adjustments to the pension system.
Pension penalty, pension bonus
One key measure is the “pension penalty,” which reduces pensions for those retiring early without having worked at least 156 days per year for 35 years. An allowance for five missed “hardship days” has been added to mitigate this penalty for those narrowly failing to meet the requirement.
Periods of maternity leave, caregiving leave, illness, and temporary unemployment will still count toward these minimums.
Conversely, a “pension bonus” will reward individuals born in or after 1973 who choose to work beyond the legal retirement age, boosting their benefits by 5% for each extra year worked. However, this incentive applies only after accumulating 35 years of work with at least 156 days annually, excluding unemployment and long-term illness.
Pension age to jump from 55 to 67 years for some workers
The pension age for military personnel and certain workers at the National Railway Company of Belgium (SNCB/NMBS) will gradually rise from the current 55–56 years to the general retirement age of 67.
This adjustment has sparked debates due to its impact on professions traditionally recognised as physically demanding.
Significant changes are also planned for civil servants' pensions. Currently based on the last 10 years of earnings, pension calculations will shift by 2062 to be based on the final 45 working years.
Pensions to be delinked from changes in active salaries
Additionally, the “perequation” mechanism, which links retired civil servants’ pensions to changes in active workers’ salaries, will be scrapped.
A new early-retirement option will allow individuals with 42 years of effective employment to retire at 60. Military service and maternity leave will count toward the qualifying period.
Recent amendments were introduced following criticism from opposition parties and some members of the governing coalition.
Rules for part-time workers with flexible hours have been relaxed, enabling them to avoid the pension penalty even if they fall below the threshold of 156 working days annually.
Adjustments will also protect civil servants who opt to extend their careers but risk losing pension benefits due to recalculations.
New pension rules to take effect in 2027
Birth leave for fathers and adoptive parents will now count toward the 42-year requirement for the new early retirement plan.
The pension reform has faced fierce resistance from trade unions and public outcry. Unions staged multiple protests and filed legal challenges, while Minister Jambon was widely criticised, particularly after a controversial TV interview in which he appeared to suggest that women should “adapt,” exacerbating concerns about the reform’s disproportionate impact on women, who often work part-time.
Despite the contentious debate, the reform secured second-reading approval from the committee on Tuesday and is now set to be discussed in the plenary session.
The new pension measures are expected to enter into effect from 2027.
