Cash reserves for the collective Pension fund, which provide pensions for Province civil servants and the majority of communal ones (as well as police, CPAS, public hospitals…) are dwindling fast. L’Echo reported on this story on Saturday, and claims to have seen a report that supports it.
The Federal Pension Service (SFP) told associations that represent local Flemish, Walloon and Brussels authorities that “they might not be able to guarantee pension payments from November 2017 onwards”.
The SFP has found a solution: make accountability contributions paid by communes that take more out of the system than they put in monthly and payable a year in advance. This would generate money short term, but would also increase the solidarity contributions that a third of communes in the Pension fund will have to pay over the next six years by 30%. This would greatly affect communal budgets, the paper pointed out.