If there is one thing the Ministry of Labour and Social Insurance understood in the past week, it is that there are no large pensions. The Social Insurance Fund provides only moderate, small and very small pensions. It should immediately recognise that the common perception among pensioners is that the state pension they receive is insufficient to maintain the standard of living they were accustomed to while working. For many, it does not even cover basic needs.
Since the government has chosen to open the chapter of pension reform, all those engaged in politics must set out their positions clearly, and before the elections. In particular, they must explain where the necessary funds will come from and what measures should be taken to avoid even more adverse conditions in the future.
I genuinely wonder how the idea emerged, reportedly based on a study by the International Labour Organization, to cut so-called high pensions from the Fund in order to support low pensioners. Under this logic, low pensions might become slightly less low, but still insufficient, while higher pensions would also be reduced to a level incapable of covering real needs. This approach overlooks adequacy, fails to design protective measures for future generations of pensioners and ignores the realities shaped by the economic crisis of the previous decade and the sharp rise in the cost of living in recent years. Unless, of course, the Ministry believes that the cost-of-living allowance has fully offset these additional costs for low pensioners.
For this reason, it is a one-way path for the state to increase low pensions and examine what additional benefits can be offered to those living on them, for example supermarket vouchers or additional discounts within the General Healthcare System. Equally, the cost should be covered through savings within the state budget, not through new taxes. If the state intended to introduce new taxation, it should have included it in the tax reform adopted only last December. The most appropriate course would be to cover the cost of increases from surpluses in social contributions. That is precisely why citizens pay social contributions, not to grant tax exemptions to foreign investors, increase public sector salaries or compensate wealthy holders of bailed-in bank securities.
With this in mind, the silence of the otherwise vocal political class is striking, especially in the run-up to the parliamentary elections. When will political parties finally present clear positions on pension reform? Unless they believe the matter is not serious enough. Is it political restraint to wait for the government’s final proposal, or tactical calculation to speak only after the elections? Those who claim to practise serious and responsible politics must now present their own proposals. Now is the time to contribute to shaping public opinion, and now is the moment to confront openly the narrow interests of certain trade union and employer organisations.
“Show me the Money” on POLITIS 107.6 is open to discussion of all views. Society wants to listen, compare and weigh proposals. Today’s low pensioners, future pensioners and their families have the right to know what each considers an adequate pension and how it will be secured. Candidates who came merely “to learn”, who believe that “expelling foreigners” will increase pensions, or who intend to wait for the government’s final proposal after the elections before taking a position are not welcome. The issue is serious and requires serious, clear positions.
We are waiting to hear from you.