The unsuspected figures of the project to reform the status of teachers: “We are ultimately talking about amounts in billions of euros”

In recent years, however, several reforms have created a mechanism for making federated entities accountable for pensions.

“With the sixth state reform, a progressive contribution rate was established for the federated entities, so that it reaches 8.86% of their respective payroll in 2028explains Maxime Fontaine, researcher in public finance at the Department of Applied Economics at the Free University of Brussels (DULBEA). Such a rate only makes it possible to finance a small part of the pensions of civil servants (including teachers) of the federated entities. The federal government pays the majority.“

By replacing the statutory system for teachers with a system of employment contracts, the Wallonia-Brussels Federation (FWB) would therefore also modify that of their pensions, which would then switch from the system reserved for civil servants to that specific to employees.

Additional cost

Financing these pensions will inevitably generate additional costs for the Federation. And not just any…

“It will no longer be the State which will pay pensions, but the Wallonia-Brussels Federation through much higher social contributions, or even a second pillar pension plan.maintains Maxime Fontaine. However, we are ultimately talking about amounts in billions of euros to equal the statutory level!“

The researcher develops: “In 2024, personnel expenditure in education (excluding higher education) is 6.8 billion euros. Per 15% increment of additional contributions, that’s 1 billion per year… The idea is that, if we want to keep the same benefits for future contract workers as for current statutory workers, it will be necessary to increase social security contributions to finance pensions. in the salaried system (they are on average 25% for employer contributions and 13.07% for personal contributions, Editor’s note) and finance a second pillar to finance the difference with the civil servants’ pension which is much higher. When all workers are employees (and the federal government will therefore no longer pay anything), the impact will undoubtedly be in the billions with unchanged policy.“.

And from the minister’s office, we assure him: “We will be careful to ensure that there is no loss of rights. A reflection will be carried out so that the CDIE is accompanied by a second pension pillar, among other rights“.

Valérie Glatigny announces a tailor-made permanent contract for teachers: “There will be an increase in salaries”

Reflection

Minister Glatigny is however cautious: “Budgetary work is underway, but the difference in cost may depend on multiple elements, including the legal form that will be chosen for the Teachers’ permanent contract.“. And specifies: “Several elements add but also remove costs from the Wallonia-Brussels Federation. We must also take into account the fact that the reduction in demographics will have a downward impact on the total cost of our teachers, in parallel with the implementation of the CDIE.“.

In any case, a compromise with the federal government which would consist, for example, of keeping teachers within the federal fold while maintaining them in a temporary form and thus limiting the additional costs borne by the FWB has little merit. chances of succeeding.

“In my opinion, it is utopian to think that an agreement can be reached with the federal government. We are in a competitive federalism. There is no reason for the federal government to make a move in favor of the Wallonia-Brussels Federation. Especially in the current budgetary context“, underlines Maxime Fontaine. Who concludes: “Pension reform lasts 50 years. And it takes ten years to prepare. I would also like to remind you that the Federation does not have its own fiscal capacity: if things get out of hand, we don’t know how to do anything. Apart from a State reform which would transfer pensions (and resources, editor’s note) to federated entities, I do not see how such a change would be bearable“.