Don’t pay student years towards pension, says Gezinsbond
Flanders’ organisation representing families says to wait to consider paying fees to include years studied as years worked as the current regulation leaves too many questions
Could lose more than is gained
The new arrangement comes into force on 1 June and allows employees and the self-employed to pay a sum to have their study years counted towards pension entitlements. However, economists for Gezinsbond calculated that for some people, the increased pension would push them into a higher tax bracket and deliver no net gain.
According to Gezinsbond’s family policy secretary, Manu Keirse (pictured), the problem affects some 322,000 people, mainly women who have worked part time and taken time off to have children. In some cases, he claims, paying off study years could actually lead to less pension earnings.
The organisation has an alternative proposal for the government to avoid such a tax situation. “With our formula, the regularisation of study years, working longer and indexation will benefit everyone, before and after tax,” Keirse said. “We hope soon to be able to present our argument to the ministers concerned.”
Photo courtesy Lannoo