What options are being discussed for the new pension scheme? From bonuses to the increase in age and the public-private pillar
The Deputy Minister of Economy, Culture and Innovation, Olta Manjani, explained in the 'DATAROOM' show on SCAN the reason why for existing pensioners, it was chosen to give a doubled bonus for those with pensions over 20,000 ALL and tripled for those over 20,000 ALL . According to Manjani, the bonus provides an alternative form to supplement the missing income for pensioners and at the same time to maintain the contributory principle which is also the main principle of the scheme.
"The purpose of the bonus is to cover an important component of the scheme which is sufficiency. It is an alternative form to supplement the missing income, especially for those who have not managed to complete the full years of contributions," stated Manjani.
For this purpose, in addition to the annual bonus provided in the budget, the government is expected to approve in December the normative act for opening a special account in the Bank of Albania that will enable the creation of a special fund for pensioners, which will it is 'fed' with income that varies with the performance of the economy.
The new pension scheme, what options are being discussed?
Discussion 1-Social pension before the age of 70
One of the proposals discussed is the connection of the social pension with the years of contributions. Currently, this pension is obtained at the age of 70, regardless of years of work. The new reform aims to establish a direct link between years of work and the amount of social pension.
Also, it is intended to enable the benefit of the social pension at an earlier age for those with more years of contributions, i.e. before the age of 70, and in the meantime, the amount of the beneficiary's pension should reflect the amount of contributions that he may have paid over the years.
Discussion 2-Retirement age
In the interview with the journalist Kreshnik Kuçaj, Manjani pointed out that one of the proposals of the World Bank, which is assisting the Albanian government in the implementation of this reform, is the possibility of increasing the retirement age. With the 2014 reform, a gradual increase in the age for men and women was established, reaching an equality of the retirement age at the age of 67, in 2056. Manjani said that the alternative that the Albanian government is supporting is no further increase. of the retirement age, but an acceleration of the rates of approaching the age of equality. This means that the equalization of the retirement age for men and women of 67 years of age may occur even before 2056, as foreseen by the 2014 reform.
Discussion 3- The second pillar of pensions: An option for the future
Another option discussed is the application of a combined scheme (public and private) for pension management. This scheme, called the second pillar, is a successful model in some countries and provides for a part of the contributions to be invested by the private sector, providing additional benefits. Manjani emphasized that any such reform requires a broad awareness campaign, as Albanians have a traditional tendency to link pension benefits with the public sector.
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