Genk threatens legal action over pension funding plan for only largest cities
The city of Genk says it will challenge a proposed federal law at Belgium’s Constitutional Court if it passes. It argues that the measure unfairly favours the country’s 10 largest cities with extra pension funding.
The draft legislation, expected to be voted on this autumn, would allocate federal support to places with at least 100,000 residents to help cover rising civil service pension costs. The 10 places in question are Antwerp, Ghent, Bruges, Leuven, Brussels, Anderlecht, Schaerbeek, Charleroi, Liège and Namur.
The federal government, already facing budget constraints, has earmarked 75 million euros by 2027 - rising to 125 million euros by 2029 - to support these areas, which face the highest wage and pension burdens.
Genk, with just under 70,000 residents, argues that the policy excludes many medium-sized cities with similar or even higher per capita pension obligations. Mayor Wim Dries believes the law breaches the constitutional principle of equality.
Under Belgium’s pension system, local authorities are responsible for paying the pensions of civil servants with permanent status. The pensions are partly funded by contributions based on the salaries of current statutory staff.
However, many municipalities now face a mismatch: fewer active civil servants and a growing number of retirees. As a result, regular contributions are no longer sufficient to cover pension costs. To bridge the gap, cities must pay an additional “responsibility contribution”.
This financial burden is especially heavy for mid-sized cities that have proportionally higher numbers of retired staff and fewer employees still paying into the system.
#FlandersNewsService | Genk mayor Wim Dries © BELGA PHOTO BERNARD GILLET
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