Today, a special session will be held by parliamentary members to discuss measures aimed at slowing down the increase in pension values.
The Members of Parliament (MPs) will convene to deliberate on the government’s proposal, which seeks to decelerate the standard adjustment of pensions and introduce stricter requirements for early retirement. The proposed draft also entails replacing the existing regulations governing extraordinary pension adjustments with a temporary allowance. The Coalition called for this extraordinary meeting to initiate the initial round of debates. It is anticipated that the opposition will impede the parliamentary approval of this amendment. As per the standard procedure, the government aims to make a decision regarding pension adjustments for the following year as early as September.
According to the Ministry of Labour and Social Affairs, the intended slowdown in pension adjustments and the imposition of more stringent conditions aim to alleviate the strain on the pension system and reduce debt. Currently, pensions are regularly increased starting from January. They are presently augmented based on price hikes and half the growth rate of real wages. Starting from next year, the adjustment will be based on the increase in prices for pensioner households and one-third of the growth in real wages, mirroring the system in place prior to 2018.
Under the proposed changes, early retirement would be possible up to three years prior to the official retirement age. This option would be available to individuals who have worked and made contributions for a minimum of 40 years. The amount received through early retirement would be subject to greater reduction compared to the current system. Pensions are composed of two components: a solidarity basic rate that remains the same for all recipients, and a merit percentage that considers years of service, contribution amounts based on earnings, and the number of children. The amendment stipulates that the merit portion of early pensions will not be subject to adjustment until the regular adjustment date.
If prices have increased by at least five percent since the previous adjustment, pensioners would receive additional funds, similar to the current extraordinary valorisation process. They would be entitled to a temporary allowance, and the merit portion of their pension would also be increased. The percentage by which the merit portion would have risen in the previous year due to price increases would correspond to the same percentage as the standard adjustment.