Date: 22.11.2011

Readed: 3902


In connection with publications that appeared, inaccurately interpreting the position of the BIA on pension reform

We specify:

Consistently upheld BIA's position remains unchanged regarding the status of the pension system and the need for reform in this area, namely:

1. The pension system is deformed, mainly due to accumulated years of shortsighted political decisions.

2. Changes in the social security system and any new late postponement will further deepen its the problems. In this sense, we demand an urgent need to proceed with necessary reforms to stabilize the system.

3. The reform should be based on consensus, with political will and determination and with trade union understanding and wisdom.

4. Previous experience of the increase in the minimum insurance limits, contributions, minimum wage and others. Showed that this leads to deficits in Social Security budget and the founding of the economy.

5. Itself only increase the required service and / or retirement age is not a panacea, if not accompanied by a package of measures including:

5.1. Introduction of personal contributions for all state employees;

5.2. Inclusion in the budgets of ministries and departments of social security funds;

5.3. Elimination of double standards and application to government departments on all legal provisions for penalties for late payment as it relates to other employers;

5.4. Output from the solidarity pension pillar of all social payments are not related to Social Security contributions;

5.5. Reforming early retirement for employees of the Interior, Defense and the Ministry of Justice (Art. 69/KSO) and its application only to those who work "on site" in the relevant risk, either directly in the trial;

5.6. Increasing the amount of contributions for employees under chl.69/KSO a rate determined by actuarial assumptions, the time required to obtain a pension, retirement pension funds retirement benefit;

5.7. Separation into individual funds to the budget of Social Security pensions for workers in the system of defense and security, and categorical workers first and second category (for work in difficult conditions);

5.8. Review of Occupations and Positions that use rights for early retirement;

5.9. Measures to increase confidence in the pension system and reducing the informal sector, including:

  • Contribution to the social security system to be a major criterion in determining the amount of pensions;
  • Consistent policy for simultaneous update of all pensions;
  • Remove the ceiling on pensions;
  • Incentives for working pensioners to pay social security on income from employment, incl. to provide a higher coefficient for recalculation of their pension;
  • Reaching retirement age who continue to work without being granted a pension, to receive more tangible compensation for each additional year of service, taking account of the landing of the PSS budget of non-payment of their pensions during those years;

5.10. On the basis of comprehensive analysis and evaluation of the impact of these measures, forecast demographic processes (migration, growth or reduction of the insured) to determine the timing and steps for both gradual increase in the required length of service retirement age.

Integrated application of these measures will help to strengthen confidence in the pension system, to strengthen the link between the amount of pension and insurance contributions, to limit pushing people into the informal sector and to reduce subsidies to the pension system of taxes on honest taxpayers.