Retirement scheme reform
29/04/2014 00:00
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The government introduced the “Document of Pension Policies”, planned
with the help of the World Bank. The Director of the Social Insurance
Institution, Vjollca Braho, declared that this document aims to reform
the system, as a necessity for stability.
The World Bank expert, Anita M.Schwarz, declared that the unspecified changes in the current legislation have a tendency to increase the cost and uncertainty for workers and retired people.
“The time for reforming the pension scheme had come long ago, because the current scheme is a pit where all Albania might fall into, if it will not be reformed”, declared the Albanian Prime Minister.
“Revenues from contributes, referring to 2013, are 51 billion ALL, or 510 million Usd. The spending reaches 95.6 billion ALL or 950 million USD. This means that between contributions and pensions there is an annual deficit. In 2013 it was 430 million USD. It should have been done time ago by those who say they belong to the right center. It will be done by us, on behalf of the progressive force that we represent. Is a very just reform, solidary and progressive, as any other reform that the government does not for itself, not to receive votes in the next years, but for the next generation”, Rama declared.
Erion Veliaj, Minister of Social Welfare, explained the details of the variants proposed in this document.
“We must entitle this a project for increasing the pensions in Albania. There will be the social pension plus additional payments, which are in fact based entirely on contribution. What is social pension? The concept of the social pension is the basis for those who have not contributed at all or for those who have contributed and will have social pension as their bases. The social pension equals to 15/35th of the minimal pension. By removing the ceiling pension, we can include the progressivity concept. Who contributes less, has a lower pension that those who contribute more”, Veliaj declared.
This was the explanation given by Minister Veliaj for the pension scheme reforms.
“Wemen will have 16 years of advantage with women. Women who would go in retirement on January 1st 2015, now will go on retirement on February 28th. The sacrifice is small, so that no one can feel the burden of this reform. But it is enough big, because it gives a positive effect when distributed among hundreds and thousands of people. Until 2032, the age might increase with two months each year for women. For men it will not change. It will start in 2032”.
The document of policies and pensions will be discussed with interest groups and then will undergo the parliamentary procedures.
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