Civil Servants’ Chamber Criticises “Unfounded” Pension Reform Plans

The Chamber of Civil Servants and Public Employees (CHFEP) has once again voiced strong concerns over the government’s proposed pension reform. The organisation argues that the planned changes are “poorly designed,” risk creating divisions in society, and undermine the very basis of the current pension model.

Under the reform, early retirement will become more difficult: starting 1 July 2026, those wishing to retire before 65 will need to work an additional month. The proposal also foresees higher pension contributions, raising the rate from the current 8% to three times 8.5%, shared between employees, employers and the State.

The CHFEP warns that the reform relies on “purely theoretical” long-term financial projections and could threaten the sustainability of the first-pillar system, which currently forms the foundation of Luxembourg’s pension model.

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