"Because of the short-sighted decisions, unreported drastic decline in employment low growth of the income and the Social Security imbalance between contributions and entitlements, the pension system (POS) is deformed in its essential characteristics and mechanisms in permanent financial deficit. Previous experience of the increase in minimum insurance limits, contributions, minimum wage and others. showed that especially in times of crisis leads to rising deficits in the budget and Social Security-oriented economy to the informal sector. "
Its said the position of the BIA, filed today in the National Council for Tripartite Cooperation.
BIA again stated its principled position on the continuous development and modernization to ensure long-term financial sustainability, to restore fairness and attractiveness of POS for insured persons and insurers.
Reforming the POS and the late each new delay will further deepen the problems, says the opinion of BIA. In this regard, the Chamber demand an urgent process with necessary reforms to stabilize the system based on consensus, with political will and determination, with expression of sense and vision of the social partners and all stakeholders.
BIA recommends implementing a comprehensive package of measures which 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 taxes on honest taxpayers.
The full text of the opinion can be read HERE
