The Left Party Calls for Increased Revenue Measures to Sustain Pension System
The Left Party (Déi Lénk) in Luxembourg has raised concerns about the current discussions surrounding pension reform in the country. They argue against proposed cuts to expenses and instead advocate for increased revenue measures to sustain the pension system.
Criticism of Proposed Reforms
- The Left Party criticizes the current proposals, stating that they involve dismantling the existing system in favor of additional pension insurance or accelerating negative elements from the 2012 reform.
- Marc Baum from the Left Party warns against catastrophic projections and describes them as horror projections that assume the pension system is no longer viable.
- Baum emphasizes the need for caution when relying on long-term projections, as past forecasts have been proven incorrect.
Advocating for Increased Revenue
- Instead of cutting expenses, the Left Party recommends increasing revenue through various measures.
- They propose removing the contribution cap and implementing contributions on all forms of work, including overtime and vocational training.
- The party also suggests maintaining the 13th pension month, pension adjustments, raising contributions from 3 times 8% to 3 times 9%, and increasing the minimum pension to the level of the minimum wage.
- The Left Party also proposes ensuring that no pension fund money is used for the employment fund or public sector pensions.
Further Reading
- Luxembourg Employers’ Association: ‘We must act now’ to secure pension system’s future
- Reform debates in October: How should Luxembourg fill its depleting pension funds?
In conclusion, the Left Party’s stance on the pension reform debate in Luxembourg highlights the importance of sustainable revenue measures to ensure the viability of the pension system. By advocating for increased contributions and maintaining key benefits, they aim to protect the financial security of retirees and future generations. It is crucial to consider these proposals in the context of long-term projections and past forecasting inaccuracies to make informed decisions about the future of the pension system.