Experts say that the intervention in the pension scheme is necessary not
only due to the huge financial deficit, but also for another reason,
that of avoiding a deep social crisis that the current system produces.
“The active population reaches 1.8 million people, but only 560.000 of them are in the social insurance scheme. There is a huge contingent of people who do not pay social insurance and that who will not be able to receive a retirement pension. The “Zero” column goes to these people, to guarantee a pension to them”, declared Naim Hasa, expert of the insurance scheme.
The World Bank values that 56% of the of the senior citizens in Albania will not benefit a retirement pension, because they have not contributed. This imposes finding a solution which for the government will be the social pension.
“It means that everyone will receive a pension once reaching a certain age, regardless if they have paid insurance or not, and it will be equal to the minimum cost of living”, Hasa declared.
But the pension covarege of those who don’t pay, might encourage informality and also raises the question of who will pay this increased burden.
“There will be increased spending in the first phase, but the government will make its differences for realizing these schemes. The government will create the priority through some taxes or obligations”, Hasa declared.
The government has declared that the public discussions for the reform will start in February. The Ministry of Labor says that the draft is based on the World Bank suggestions, but so far they have been reserved about the details. Will the scheme be completely carried out by the state, or will there be private ones?
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