Rival parties lock horns over state pension reform plan


The rival political parties clashed over the potential adoption of a new state pension reform plan that aims to raise contributions for greater future benefits. The reform is based on a survey conducted by the parliamentary special committee on pension reform, which found that 56 percent of respondents preferred paying significantly larger contributions for increased benefits, while 42.6 percent favored slightly larger contributions while maintaining the current payout level. The main opposition party supports the scenario preferred by the majority of respondents, while the ruling party has raised concerns about the fairness and fiscal stability of the reform plan. The proposed reform involves increasing the contribution rate by 4 percentage points to 13 percent and raising the payout by 10 percentage points to 50 percent. On the other hand, the less favored alternative suggests increasing the contribution rate by 3 percentage points to 12 percent and keeping the payout at the current level of 40 percent, with supporters arguing that it would ensure the longevity of the state pension program. The clash between the parties reflects their differing perspectives on the best approach to address the challenges facing the public pension fund in an aging society.


Previous Post Next Post