Time credit: modification of the entitlement to benefits as from 1 January 2015

A Royal Decree of 30 December 2014 provides for several amendments to the granting of time credit benefits.

These amendments concern the following points:

• abolition of the entitlement to benefits in the event of unmotivated time credit;
• in some cases an extension of 12 months of the entitlement to benefits in the event of motivated time credit;
• an increase of the age as from which the entitlement to benefits shall be granted in the event of an 'end of career' time credit'.

These changes will be effective as from 1 January 2015.  However, transitional measures will be provided.

Context

The rules governing the granting of time credit benefits by the National Social Security Office have been laid down in the Royal Decree of 12 December 2001.

The conditions for granting the entitlement to time credit are governed by the collective bargaining agreement no. 103 of 27 June 2012. The provisions of this agreement have been amended in line with the provisions of the Royal Decree of 12 December 2001 to ensure consistency between the conditions for granting the entitlement to time credit and the conditions for granting the time credit benefits.

The provisions of the Royal Decree of 30 December 2014 amend the rules for granting the benefits. This creates discrepancy between the time credit access conditions and the conditions for granting the career-interruption benefit. If the collective bargaining agreement no 103 is not amended, the worker may in certain situations meet the conditions to be entitled to time credit without necessarily being entitled to a career-interruption benefit (or vice versa) ... !

Abolition of the entitlement to benefits in the event of unmotivated time credit

The entitlement to career-interruption benefits is abolished in the event of unmotivated time credit.

Extension of the entitlement to benefits in the event of motivated time credit

In certain cases, the entitlement to time credit benefits is extended by 12 months in the event of motivated time credit. The worker is entitled to 48 months of benefits instead of 36 months  (before 1 January 2015) if the time credit is taken:

• to care for his child up to the age of 8 years;
• to provide palliative care;
• to provide assistance or care to a seriously ill family member or relative.

The entitlement to benefits is maintained for 36 months if the time credit is taken to attend training.

Increase of the age as from which the entitlement to benefits shall be granted in the event of an 'end of career' time credit'.

The entitlement to benefits in the event of a reduction of the working time to a half-time job or by 1/5 th in the context of an 'end of career' time credit for workers who have built up a career of at least 25 years, shall be granted as from 60 years (instead of 55 years before 1 January 2015).

However, the entitlement to benefits shall be granted as from 55 years (instead of 50 years before 1 January 2015) in the following events:

1. the worker is employed in a company in difficulty or undergoing restructuring;

2. the worker has built up a 35-year career as a salaried worker;

3. the worker was employed in a tough profession for a certain period.

However, the age of 55 shall be gradually increased to 60 years, according to a fixed time scheme:

• 56 years on 1 January 2016;
• 57 years on 1 January 2017;
• 58 years on 1 January 2018;
• 60 years on 1 January 2019;

Notice! However, this gradual increase does not apply if the following conditions are met:

• a collective bargaining agreement concluded in the National Labour Council (= framework cba) for the period 2015-2016 provides for a lower age limit without this being less than 55 years;
• the framework cba must be of limited duration, must not contain any provision of tacit renewal and must not exceed the duration of 2 years;
• the start date of the period of reduction of the working time or of the extension of the period of reduction of the working time falls within the period of validity of the framework cba;
• In the 1st case above (company in difficulty or undergoing restructuring) the collective bargaining agreement concluded following the restructuring or the difficulties explicitly stipulates that the framework cba shall be applicative;
  in the 2nd and 3rd case above (long career and tough professions), the joint (sub)committee being competent for the worker has concluded a collective bargaining agreement for the period of validity of the framework cba which explicitly stipulates that it has been concluded in application of the framework cba.

The framework cba can be extended or amended after 2016 under the same conditions, in which case the minimum age can be gradually increased according to a fixed time scheme.

Entry into force and transitional provisions

The new provisions shall become effective on 1 January 2015. They more specifically apply to all first applications for benefits starting after 31 December 2014.

'First applications' are defined as:

• all applications of workers who for the first time apply for career-interruption benefits;
• all applications for career-interruption benefits who are not an uninterrupted continuation under the same form of a period of career-interruption benefits which is ongoing on 31 December 2014.

However, transitional measures shall be provided. The regulations which were effective before 1 January 2015, shall  continue to apply in the following cases:

• to all first applications for career-interruption benefits received by the NSSO before 1 April 2015, provided that the employer was informed in writing by the worker before 1 January 2015and that start before 1 July 2015;
• to all first applications for career-interruption benefits starting after 31 December 2014 for workers aged at least 50 years who reduce their working time in the context of an 'end of career' time credit  - 'company in difficulty or undergoing restructuring', when the start date of the recognition of the company as being a company in difficulty or undergoing restructuring is situated before 9 October 2014;
• to the workers aged at least 50 years, who, in the context of an 'end of career' time credit were already entitled to career-interruption benefits before 1 January 2015 and of whom the entitlement to career-interruption benefits was temporarily interrupted, when submitting a new application in 2015, after a period of full-time resumption of work, illness or thematic leave.

Source: Royal Decree of 30 December 2014 amending the Royal Decree of 12 December 2001 for the implementation of chapter IV of the Act of 10 August 2001 on the reconciliation of employment and quality of life with regard to the schemes of time credit, reduction of the working week and reduction of the working time to a part-time job, Moniteur Belge 31 December 2014.

FR/NL

Author: Catherine Legardien

20/08/2015