Two fixes that could improve your pension

The thresholds for the imposition of a solidarity contribution on pensions will be raised and the tax trap which some pensioners still suffer will definitely be thwarted.

Two pension measures were referred Wednesday to the ongoing parliamentary dialogue to vote by consensus, like other texts considered priority in current business periods.

The outgoing Minister of Pensions, Daniel Bacquelaine (MR) was therefore limited to present Wednesday his bill on the contribution of solidarity. He also stated that he supported the solution of his former Finance Minister Johan Van Overtveldt, notified on 23 November to the Council of Ministers, and re-tabled as a bill by Jan Spooren (N-VA) MP the pitfall of the tax trap of which some pensioners are victims. Both texts will be examined concomitantly at a future meeting.

But what is it exactly and what benefits can retirees expect?

The government has already made sure to erase the tax trap that wantedan increase in the gross pension occasioned in some cases a reduction in the net pension. But this only applies to pensioners with no other income.

Because in some cases, a person who does not pay any tax on his pension but who receives another income – even minimal – is then imposed and loses. Explaining that "this type of perverse effect is always difficult to solve in terms of taxation," Minister Bacquelaine had badured that the goal is to achieve a truly more equitable system at the end of the legislature. In a short time, the tax trap should really be a very bad memory.

It'sOne of the deductions that applies to the legal pension. This levy increases with the gross amount of pensions and varies between 0 and 2%. In order to determine its rate, the administration takes into account not only the legal pension, but also the extra-legal pensions of 2^e pillar.

Currently, for pensionsisolated, the contribution is withheld as soon as the monthly gross pension exceeds 2358.32 euros; in case of pension householdshe is from 2726.53 euros.