The Belgium government is to make a last gasp push next week to try and introduce the long-overdue Vandenbroucke law on industry-wide pension plans before the country goes to the polls in May.

Henk Becqauert, cabinet adviser to the Frank Vandenbroucke, the Belgian minister of social affairs and pensions, says that Prime Minister Guy Verhofstad has made the Vandenbroucke law a priority for introduction by the government before parliament begins to wind down at the beginning of April.

To this end he says that a full day will be devoted to final discussions on the new pensions law in the parliament next week.

The Vandenbroucke law, which has been in discussion in Belgium for a number of years now and had its fair share of false starts, sets out the framework for the introduction of sector-wide DC-type pension arrangements.
The Belgian government hopes that the law could increase pension coverage to around two-thirds of the population – a shot in the arm for a country where occupational pensions coverage is currently relatively low.

Becquaert says two parts of the Vandenbroucke law; those concerning prudential rules and social matters, have already been approved by the government’s Commission on Budget and Finance.

Next week’s parliamentary session will see the Commission look at fiscal issues, particularly concerning the so-called ‘cafeteria plans’ that are to be included in the legislation.
These concern the choices that employees can make between different social cover such as pensions, healthcare or disability allowance from contributions paid by the employer.
"At the moment it is difficult to make such choices because there are different laws that cover each arrangement and it is the fiscal part that is difficult to reconcile.
"This was a new project introduced around nine months ago. It has slowed down the progress of the law and reform of second pillar pensions and it has taken us nine months to discuss this in government and to finalise."

Following discussion by the Commission on Budget and Finance, the law will then go to a plenary session of the Belgian parliament.

Becquaert is confident of success: "I am 100% sure that this law will be passed before the end of parliament.
"It’s the number one law to be passed in parliament because several parties in this government have pushed for this law and gone to the press and public to say that there is a new law on the way. If it doesn’t pass it would be a big embarrassment for many in the government."

He notes that the country’s social partners are also waiting for the law: "They have just started the collective bargaining that will settle pay and benefits for the next two years. On many of the tables there is a proposition for the creation of a second pillar pension arrangement on an industry wide level.
"This is done with the inspiration of the new law in mind and they really want this to come in."





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