Pensions, new scheme

The Minister of Finances, Ridvan Bode, admitted that the pension scheme has failed, since it is not financially stable and has created a deficit equal to 1% of the GDP.

Asking the consensus of the opposition, Bode declared that the formula was consulted with the World Bank experts and now is waiting a calmer political moment to become public.

“The new system aims the final resolution of a series of matters, such as establishing incentive elements for increasing the participation and the contribution from the real payment, especially from the contributors with a wage more than the average. It also aims leaving this out of the pension scheme benefit process, regardless the contributions”, Bode declared.

According to the Minister of Finances, the Social Insurance scheme will be fulfilled with all necessary columns, not only with obligatory contribution.

According to him, the pension reform will include other measures related with the reinforcement of employment and firing rules, reinforcing the measures for security at work and the best combination of revenues.

According to Bode, the social insurance scheme will now be base don pensions, rather than on social assistance, as it has been so far, declaring that the index formula will change,

This declaration of the Minister of Finances was made in the conference organized for the 20th anniversary of creation of the Social Insurance Institution.

Top Channel