News
BackThis week, a public hearing on the Green Paper on pensions took place in the European Parliament (EP). The public consultation on the Green Paper on pensions ended 15th November, by which time the EU Commission had received 1,600 replies, informed the responsible Employment Commissioner László Andor during the hearing in the European Parliament. A first and even at this point very controversial draft report on the Green Paper on pensions has now been submitted to the EP. More than 500 amendments were tabled. A clear sign for great disagreement over the pensions issue.
Old age provision and pension systems fall predominantly within the competence of the Member States
The rapporteur in the competent EU Employment Committee on the Green Paper on pensions, the Dutch MEP Ria Oomen-Ruijten, presented her draft report at the hearing. She was in favour of old age provision falling under the sole competence of the Member States but commented that further EU-wide coordination, in particular in respect of the EU 2020 Strategy, a functioning internal market and the Stability and Growth Pact was required. Another central issue would be the growing mobility of citizens and the portability of pension entitlements associated with it. Oomen-Ruijten therefore demanded a right of workers, which would ensure the portability for second-pillar pensions entitlements between different systems.
Inconceivable: legal age for statutory retirement shall be coupled to life expectancy
Taking a closer look at the draft report of the Dutch MEP Oomen-Ruijten on the Green Paper on pensions, one comes across many demands, which are factually and politically unjustifiable. For example, she urges the Member States to couple life expectancy to the statutory retirement age - this would effectively be the same as introducing automatisms, giving politics the chance to simply ditch their responsibility to create "more and better jobs". The report also fails to draw on the experiences of the financial crisis, which could have taught some valuable lessons. Instead of realistically re-evaluating the costs and risks of funded systems for example, one is in favour of a further shift to capital-based occupational and private pension schemes.
Answer to demographic challenges lies in the utilisation of existing employment potential
The demographic challenge is used for quite a few demands in respect of the financial viability of pensions. However, not demographic relations (relations between older people and the number of people of working age) determine future financing requirement, but the development of the economic dependency rate, i.e. the relation of beneficiaries to the working age population. Although a central issue, this point is completely ignored by the Report on the Green Paper. The next weeks will show whether the rapporteur will be able to successfully defend her report. As in the past, AK EUROPA will support the interests of the employees and workers and try everything in its power to ensure that the discussion does not go in the wrong direction.
Further information:
Draft report on the Green Paper on pensions
AK Position on the Green Paper on pensions
The rapporteur in the competent EU Employment Committee on the Green Paper on pensions, the Dutch MEP Ria Oomen-Ruijten, presented her draft report at the hearing. She was in favour of old age provision falling under the sole competence of the Member States but commented that further EU-wide coordination, in particular in respect of the EU 2020 Strategy, a functioning internal market and the Stability and Growth Pact was required. Another central issue would be the growing mobility of citizens and the portability of pension entitlements associated with it. Oomen-Ruijten therefore demanded a right of workers, which would ensure the portability for second-pillar pensions entitlements between different systems.
Inconceivable: legal age for statutory retirement shall be coupled to life expectancy
Taking a closer look at the draft report of the Dutch MEP Oomen-Ruijten on the Green Paper on pensions, one comes across many demands, which are factually and politically unjustifiable. For example, she urges the Member States to couple life expectancy to the statutory retirement age - this would effectively be the same as introducing automatisms, giving politics the chance to simply ditch their responsibility to create "more and better jobs". The report also fails to draw on the experiences of the financial crisis, which could have taught some valuable lessons. Instead of realistically re-evaluating the costs and risks of funded systems for example, one is in favour of a further shift to capital-based occupational and private pension schemes.
Answer to demographic challenges lies in the utilisation of existing employment potential
The demographic challenge is used for quite a few demands in respect of the financial viability of pensions. However, not demographic relations (relations between older people and the number of people of working age) determine future financing requirement, but the development of the economic dependency rate, i.e. the relation of beneficiaries to the working age population. Although a central issue, this point is completely ignored by the Report on the Green Paper. The next weeks will show whether the rapporteur will be able to successfully defend her report. As in the past, AK EUROPA will support the interests of the employees and workers and try everything in its power to ensure that the discussion does not go in the wrong direction.
Further information:
Draft report on the Green Paper on pensions
AK Position on the Green Paper on pensions