Early retirement and RVU: the latest updates

The subject of early retirement, the so-called Early Retirement Scheme (RVU), has been very topical recently. Because the Cabinet and the social partners are still deliberating, there is little clarity even on Budget Day. 

The cabinet does indicate its willingness to talk to unions. The cabinet has also "structurally reserved money for that." 

The government will continue to implement the Future Pensions Act in 2025. For example, next year the government will continue to provide information on the new pension law and identify bottlenecks surrounding the transition to the new pension scheme.The combination of choice guidance and "good employment practices" will figure prominently here.

The "pension subject commitments bill" will be presented to the House of Representatives in 2025. The bill will enable the voluntary continuation of orphans' pensions and unify the child concept. In addition, the bill contains a widening of the transitional right for non-contributory continuation of the pension in case of disability for both closed pension funds and insurers.  

The proposal also contains some technical adjustments that help implement the transition to the new system and some editorial changes. 

The cabinet is taking measures to encourage a further reduction in the number of workers without pension accrual.

An RVU is a termination arrangement between an employer and employee in which the employee is given compensation to retire early. The existing tax exemption for employers, which allows companies to allow employees in heavy-duty occupations to retire early, expires at the end of next year. The employer currently avoids a 52% final tax penalty. Any employee can take advantage of this voluntary scheme no later than 3 years before the state pension date if the employer agrees. RVU can currently be paid out until December 31, 2028. Funding takes place from CLA agreements or directly by the employer itself. If no CAO applies, there is no obligation for the employer to participate. Drastic actions are currently being taken in various sectors.