The government has decided to submit the implementation of the “mixed” pension to social concertation
Civil servants who decide to leave the public sector to start a career as employees will receive a public sector pension for the years worked as civil servants and an employee pension for the years worked as contract personnel.
The same principle will henceforth apply to contract personnel in the public sector who are granted a permanent position during their careers. They will benefit from an employee pension for the years worked as contract personnel and a public sector pension for the years worked as civil servants following tenure.
For years the three Associations of Cities and Municipalities have been requesting such a « mixed » pension, enabling them to prevent the phenomenon with local authorities of last minute tenures aimed at allocating public sector pensions without having having paid the corresponding contributions.
The Council of Ministers has decided to submit this proposal, transformed into a draft bill, to social concertation that will discuss its modalities and implementation.
The government has already decided that the measure will not apply to temporary statutory staff in education. Nor will the civil servants whose tenure was granted prior to the date of the coalition agreement be impacted by this measure. Insofar as these civil servants are concerned, the years worked as contract personnel will be taken into account for the purpose of calculating public sector pensions.
The draft bill is in line with the coalition agreement which provides for an adjustment of the legal framework pertaining to occupational pensions, thereby encouraging the development of such pensions for contract personnel in the public sector. The text provides for a financial stimulus package for local authorities to implement or develop a second pension pillar for the benefit of their contract staff. The two measures (a “mixed” pension and the development of occupational pensions for contract staff in the puclic sector are therefore closely interlinked.
Reminder: within the context of the last budget negotiations the Council of Ministers has also decided to grant an occupational pension to all contract personnel working in Federal Government departments the annual cost (EUR 32 million) of which has been calculated to guarantee the payment of premiums equalling at least 3% of wages.
“The mixed pension lives up to the expectations the three Associations of Cities and Municipalities have had since long. Insofar as local authorities are concerned, it will indeed help prevent a pension cost explosion. It also concerns a measure which – thanks to the parallel development of the second pension pillar – is aimed at bringing about increased social justice between tenured and contract staff.
The Government has given me a mandate to start social concertation on these reforms that are needed to guarantee the financing of local government pensions.
Once again, I deplore the deceitful statements planting the idea in people’s minds that pensions would be lowered or even that this reform would be approved without any social concertation.”