Social Partners Clash Over Early Retirement; N-VA Delays Abolition
Coalition Agreement on Early Retirement Pension Faces Delay
Table of Contents
- Coalition Agreement on Early Retirement Pension Faces Delay
- Early Retirement Pension in Belgium: SWT Abolition FAQs
- What is the SWT?
- Is the SWT Being Abolished?
- When is the SWT being wholly abolished?
- Why was the SWT abolition postponed?
- What are the Implications of the Delay?
- Who Requested the Delay?
- What do the social partners think?
- What is the N-VA’s position on the SWT?
- How much will the delay cost the government?
- Will the government be compensated for the costs?
- timeline of SWT Abolition
N-VA party leader Axel Ronse stated in the Federal Parliament last Tuesday,
We want respect for the coalition agreement.
The Coalition Agreement stipulates that the De Wever Government will
eliminate the SWT, formerly known as the early retirement pension,
immediately.Though, the Council of Ministers decided on Friday, at the
request of trade unions and employers, to postpone this abolition for
several months. David Clarinval (MR) announced this in a press release.
Social partners requested that SWT files continue to be accepted until June
30, 2025.The system will then be abolished as promised. Temporary
arrangements via collective agreements will remain in effect until the end
of June, ensuring that employees dismissed before that date can still
claim unemployment benefits.
Compensation for €9.5 Million Loss?
Earlier in the week, the N-VA, the largest government party, firmly
supported the social partners’ demand. Ronse emphasized that the
coalition agreement is holy
and that the influx of SWT recipients
should have ceased on January 31. Still, his party was overruled
in the Council of Ministers.
The postponement is projected to cost the government €9.5 million this
year. Consequently, the N-VA, the Prime Minister’s party, opposed the
proposal from trade unions and employers. While this amount is expected
to be compensated for elsewhere, the Clarinval cabinet has not provided
specific details. Ronse insists that the trade unions should compensate
for these costs themselves, stating,
It is indeed shocking that the social partners are constantly concluding
agreements with the taxpayer.
Clarinval believes the decision demonstrates
that the social consultation in our country is still working and that
the social partners can conclude an agreement with the government.
For the French-speaking liberals, this also sends an critically important signal
ahead of the general strike on Monday.
Early Retirement Pension in Belgium: SWT Abolition FAQs
What is the SWT?
The SWT, or the System of Unemployment with Company Benefits (SWT), is a Belgian early retirement scheme.It allows older unemployed workers to receive unemployment benefits. The program was put in place in 2012. It was formerly known as the “brugpensioen.”
Is the SWT Being Abolished?
Yes, the SWT is being eliminated. The De Wever Government coalition agreement stipulates it’s immediate abolition. However, the Council of Ministers decided to postpone the abolishment for several months.
When is the SWT being wholly abolished?
The SWT is expected to be fully abolished at the end of June 2025.
Why was the SWT abolition postponed?
The postponement was decided at the request of trade unions and employers.
What are the Implications of the Delay?
The delay has several implications:
continued Acceptance of Files: SWT files will continue to be accepted untill June 30, 2025.
Temporary Arrangements: Temporary arrangements via collective agreements will remain in affect until the end of June, ensuring that employees dismissed before that date can still claim unemployment benefits.
* financial Impact: The postponement is projected to cost the government €9.5 million this year.
Who Requested the Delay?
The delay was requested by social partners, specifically trade unions and employers.
David Clarinval believes the decision demonstrates that the social consultation in Belgium is still working and that the social partners can conclude an agreement with the government
What is the N-VA’s position on the SWT?
The N-VA, the largest government party, initially supported the immediate abolition of the SWT, as per the coalition agreement.However,they were overruled in the Council of Ministers. axel Ronse, N-VA party leader, stated that the coalition agreement is “holy” and criticized the decision to postpone the abolition. Also, the N-VA party opposed the proposal from trade unions and employers.
How much will the delay cost the government?
The postponement is projected to cost the government €9.5 million this year.
Will the government be compensated for the costs?
While the amount is expected to be compensated elsewhere, the Clarinval cabinet has not provided specific details. Ronse insists that the trade unions should compensate for these costs themselves.
timeline of SWT Abolition
| Event | Date |
| ——————————————– | ———— |
| Original Coalition Agreement on SWT Abolition | Undisclosed |
| Initial Deadline for SWT Abolition | January 31st |
| Council of Ministers Postponement Decision | Friday |
| SWT Files Acceptance Deadline | June 30, 2025 |
| SWT Abolition complete | End of June, 2025 |