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Africa
Namibia: Free Health Care for Elderly (June 10, 2008)
Life is not easy for senior citizens in Namibia. The social pension is inadequate, even after a recent increase. Older and disabled people need health care more often, but hospitals and medicine are prohibitively expensive. The “elderly” by definition are those over 60 years of age and on government grants; “disabled” are those medically proven unable to work. The government has set no date to begin to provide health care for the elderly and disabled.
South Africa: R1.2 Billion For Equalization of Old Age Grants (May 18, 2008)
In South Africa, men are demanding equal treatment in social security checks. Under the current system, woman begin receiving social security at age 60 while men must wait until 65. This system operated under the idea that men were stronger and should work longer than women. Now however, there is a focus on the elderly as a whole and their key role in society. In addition, many men support their orphaned grandchildren whose parents died of HIV/AIDS. Thus there are increasing demands to equalize the system.
Nigeria:
Enugu Clears Arrears of Pensioners (March 22, 2008)
The Nigerian administration of Enugu announced yesterday that it has clarified the situation of 14 months of pensions that were not paid under the previous administration of Governor Chimaroke Nnamani. Beginning now, pensioners will get their pensions on time.
Enugu also offered presents to pensioners and congratulated them for their good works.
South Africa: Keep Pace with Changing Retirement Legislation (March 17, 2008)
The South African government is changing its pension system. First, taxes on
personal retirement savings are levied to encourage people to participate in a pension plan. But, the new system also seems to have limits, as some rules favor those with higher incomes. One of the biggest controversies centers around the rights of divorced partners. Participants can now transfer some of their retirement funds into private “investment” funds as the country leans toward privatized options.
Senegal: Retired Senegalese Want
Action (January 17, 2008)
(Article in French)
Retired Senegalese are getting impatient as the government keeps on promising a generous and well managed pension system. The general secretary of the National Association of Senegalese retirees has stated his regret that the Government has not taken action on different propositions discussed during meetings and conferences. He wants the right to speak during the debates over the Senegalese Institute of Retirement
Plans.
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Americas & Caribbean
Reports | Articles
Reports
Canada: Income Security and Stability During Retirement in Canada (March 2008)
Using 20-year longitudinal data to follow individuals’ incomes when they retire, authors of this study look at workers with average incomes and those with low incomes. One finding is that income instability declines for all groups as they age, largely because of the stabilizing effect of public pension income sources.
Peru:
Intergenerational Transfers and Demographic Transition in Peru: Remittances, Old-Age pensions, and Future
Challenges (October 2007)
Family solidarity remains a traditional value in Peru. Families live together in the same house and share incomes to help children and the vulnerable elderly. But, this model faces changes due to the demographic transition and the effects of
increasing migration of the young.
Articles
Ecuador: Prohibiting Pension (June 28, 2008)
(Article in Spanish)
The president, Rafael Correa, announced a reform prohibiting bureaucrats from accessing retirement and pension funds. This law was created in response to their abuse of the Central Bank’s funds, which have provided 2,000 bureaucrats with $160 million in pension. As a result, some bureaucrats receive almost double the amount the rest of the state does. According to the country’s constitution, special pension funds can be established for the private sector; however, bureaucrats in the public sector are abusing them the most.
Bolivia- Social Pensions in Bolivia (June 17, 2008)
(Article in Spanish)
In January 2008, the government instituted la Renta Dignidad, a non-contributory pension that provides Bolivians over 60 with Bs 200 a month. La Renta Dignidad, which replaced the Bonosol—the country’s former social pension plan--increased the amount of pension and lowered the minimum age of recipients. As a result, 676,000 elderly are now receiving pensions as opposed to 489,000 under the Bonosol. The social pension is the only source of income to 50% of its recipients and is used for necessities, mostly food and medications.
Ecuador: Retirees Threaten with Actions (June 15, 2008)
(Article in Spanish)
Ecuadorian retirees announced their intentions to take public action if the Institute of Social Security unites with the universal health plan. The retirees oppose the merger since the Social Security program has a huge debt of nearly 3.5 billion dollars. The retirees continue to organize and plan their defensive strategy.
Costa Rica: Pensions for the Disabled and
Elderly Increase by 5% (June 10, 2008)
(Article in Spanish)
On July 1st, more than 146,000 disabled and elderly workers will receive a 5% increase in their pensions. This will increase the minimum monthly pension from 82.500 colons to 86.625 colons. The board of the Costa Rican Social Security Fund approved the increase to maintain the monetary value of workers’ monthly pensions. Costa Rica’s pension plan currently covers 57.5% of its workers—the second highest coverage rate in Latin America.
Chile: Retiree 7% Tax Eliminated (May 24, 2008)
(Article in Spanish)
The Chilean president eliminated the 7% tax on retiree’s health. This decision followed an intense debate. Is the problem the drop of pensions or the 7%? There is no assurance that older persons will have enough money for health expenses.
Honduras: The IHSS Provides Three Types of Pensions (May 20, 2008)
(Article in Spanish)
The Honduran Institute of Social Security provides three types of pensions. The members enjoy pensions for handicaps, for elders, and for survival. An elder’s pension must be calculated. People can qualify for pensions when they become 65 years old and retired from their company. If the member passes away, family members can receive their pension.
Honduras: Be Careful with Finances (May 20, 2008)
(Article in Spanish)
Women should be informed about how to avoid getting trapped financially when planning their future. Women receive half the retirement pension that men receive and thus need to plan ahead, especially because their retirement needs may include caring for children in the family.
Argentina: Future Retirees Can Receive Up to 75% of Salary (May 11, 2008)
(Article in Spanish)
In Argentina the elderly can receive an initial pension of 75%. The retirement pensions have increased
since 2005. The increase of the PBU stopped in 2007. The new retirees are not receiving any increases given after this year.
Uruguay: Supreme Court of Justice Changes Position Regarding Retirement Pension (April 30, 2008)
(Article in Spanish)
The Supreme Court of Justice has changed its position on the legality of imposing a retirement pension tax. A group of retirees of the Ministry of Economics and Finances says that the tax is “unconstitutional.” The retirees presented evidence of unconstitutionality to the Supreme Court of Justice. The government has yet to determine whether to eliminate the tax.
Cuba: Cuba’s
Government Raises Retirement Pensions 20% (April 28, 2008)
(Article in Spanish)
The Cuban government has just raised retirement pensions and social
assistance by 20%. The increase benefits over two million people. About
20% of the population shows signs of ageing. Raul Castro has raised
pensions and salaries since taking office.
Also, Cubans will now have access to lodging at island hotels,
computers, and cell phones.
Cuba: Raul Castro Raises Pension by Two Dollars (April 28, 2008)
(Article in Russia)
Cuban President Raul Castro decided to increase pensions by 20% as compensation to those who “dedicated a great part of their lives to working... and who remain firm in defense of socialism." Minimum pensions will be increased by around $2 reaching the level of $12 per month.
Peru: Retirees Receiving an Adequate Amount? (April 23, 2008)
(Article in Spanish)
In Peru, retirees bring many claims about their pensions to the ONP and its Judicial Authorities. Retirees have many doubts and questions about the amount and adjustment of their pensions. It is necessary for the government to evaluate the ONP’s resolutions that limit or deny access to pensions to or to readjusting pensions. This generates an excess of claims in the judicial processes. A pension problem can last from three to four years.
Chile: Only 60% of Elders Over 65 Receive Retirement Pension (April 7, 2008)
(Article in Spanish)
This study about the older people in Chile shows that the third age has not only increased, but that they are more active and also worried about their health. From 1990 to 2006, the population over 60 that took preventative exams increased from 15.3% to 25%. This only increased 9% to 11% amongst the rest of the population. The retirement pension has decreased from 66% to 60% during the last 14 years. Elders feel the vulnerability of their current economic situation..
Peru: Peru's Booming Pension Funds Eye Mortgages, Ports (March 31, 2008)
The Peruvian pension fund system was born more than 10 years ago. It has risen at the rate of 20 percent a year to a total of $22 billion in deposits. Workers in the private sectors must contribute about 13% of their salary to this pension fund. However, the majority of Peruvians in the top economic level are not enrolled in pension funds. Their additional contributions would add even more jobs and give an overall lift to the economy.
Mexico: Errors Detected in the Mexican Gauges (March 28, 2008)
(Article in Spanish)
Mexico has been slow to analyze and correct its pension system, which has resulted in abuse on the part of some industries and has prejudiced the rights of the workers. While Mexico has been behind other countries in updating its system, a more vigilant study will assure that workers receive the benefits to which they are entitled.
Trinidad and Tobago: Minister: Pension System
Reform Critical (March 28, 2008)
The Minister Karen Nunez-Tesheira from Trinidad and Tobago wants pension reform to increase the economic situation in her country. She believes this money could “be used to develop new financial institutions and deepen capital markets by mobilizing long-term saving and allocating it to the productive uses." While this economic view should not be the first interest behind pension reform, it is critical to understand the effects of a progressive pension system on the whole economy.
Dominican Republic: Construction Trade Pensioners Await Resources (March 5, 2008)
(Article in Spanish)
Twelve hundred workers in the informal construction sector receive pensions due to age, retirement or handicaps. They receive a very low monthly pension payment on which they cannot survive. The Fund and Retirement Pensions of Construction Workers is $3,100 million in debt to the Dominican state and private sectors. The executive director, Luis Manuel Glass, says they are working to satisfy the workers’ needs on a national level.
Chile: Congress Approves the Reform of the State of Pensions in Chile (January 17, 2008)
(Article in Spanish)
In a major achievement, Michelle Bachelet, the President of Chile, proposed and won Congressional support for a basic social pension of $120. It’s designed for older persons who have no pension from their years in the workforce. This social pension will cost $850 million and is expected to become law. Most old Chileans suffer from poverty due to the privatization of public pensions under the rule of dictator Pinochet. Now, this disastrous policy may well be reversed.
Philippines: At Large: Pension for Seniors (March 04, 2008)
Older Filipinos face different situations depending on the city where they live. At best, some cities have created special plans and benefits for older persons. Others focus only on younger people’s programs. However, the aging population will grow by almost 15% in the next few years. That is why the government is devising a social pension program that will grant every person over 60 years a small amount of money, so that they at least can cope with their basic needs. GAA greatly encourages the government to adopt this measure.
Bolivia: Bolivians Pass Dignity Pension (November 28, 2007)
On November 28, the Bolivian government adopted the Universal Old Age Law providing pensions for the elderly. Bolivian Congress Speaker Alvaro Garcia publicly announced the approval of the measure that provides 200 Bolivian pesos (about 25 dollars) per month for people over 60 years of age. After many protests and marches in support of the law, Bolivians cheered news about its adoption.
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Asia Pacific
Reports | Articles
Reports
India: Understanding Poverty Among the Elderly in India: Implications for Social Pension Policy (April, 2008)
The authors argue that the circumstances of poor elderly in India demands a careful look. First, households with elder relatives do not have higher poverty rates than non-elderly households. However, the poor elders have high mortality rates. This has implications for the Government of India’s new policy to increase social pension funding to the poor older people. It suggests that programs reducing elderly mortality may increase the relative poverty levels of the elderly.
Report: China: Pension Reform in China:
Progress and Prospects (2007)
China is developing the largest pension system in the world. The goal is
to build a system which adapts to a rapidly aging population in a
predominantly underdeveloped, but growing, economy. This paper delivers
a description of the historical development of national old age
insurance system in China. Subsequently, it provides a detailed
examination of the pension arrangements implemented by the end of 2006.
It finds that despite progress, the coverage of the system among urban
employees remains low while the rural population is outside the national
pension system. Finally, the paper reveals the importance of extending
insurance coverage by encouraging financial commitments to the National
Social Security Fund by 2015 to manage the side effects of the rapidly
aging population. The reader should bear in mind that the estimates in
the paper might not fully correspond to other Chinese sources
Articles
China: Government Invests in Pension Scheme (June 27, 2008)
(Article in Chinese)
Dong Chang district of the Tong Hua administrative division has come up with a basic health and pension plan. Each older person aged 60 years and above will be given no less than 60 Yuan monthly in pension subsidy. A total of 3,600 recipients are expected to benefit, and the government is expected to disburse 2,700,000 Yuan yearly.
China: Ju Rong City Seniors to Receive 30 Yuan Monthly Allowance (June 7, 2008)
(Article in Chinese)
Ju Rong City has stipulated that seniors over 65 years of age and without a fixed income will receive a monthly allowance of 30Yuan. This will go into effect on July 1, 2008. There are close to 60,000 older persons who will receive this allowance. The payout is expected to cost an estimated
20,000,000 Yuan annually. Other districts such as Dan Tu District are expected to follow suit in the near future, although final details have not been worked out.
China: More Effort Needed to Sustain Pension System (May 14, 2008)
(Article in Chinese)
China’s pension system faces several shortcomings. First, the basic pension coverage rate is low with not enough money invested. Second, variations exist in standards of pension across districts. Third, the pension system has not reached a satisfactory standard. Although the pension rate was raised from 500 hundred million Yuan in 2003 to 1300 hundred million Yuan in 2007, the rate of subscribers remained low compared to that of developed countries. At present, subscribers to enterprise-led pension schemes total about 1.5%.
China: Beijing Seniors Without Social Security to Receive Welfare Pension (May 12, 2008)
(Article in Chinese)
Beijing has 2,360,000 seniors over 60 years old and close to 700,000 of them do not have any social security. Among these, 510,000 are rural elders. Beginning this year, 2008, elders without social security can receive 200 Yuan monthly from a Welfare Pension scheme. In the three months of February to May 2008, 125,600 urban elders and 357,000 rural seniors have registered for
the Welfare Pension. The government has invested 16.8 hundred million Yuan into this scheme. Revisions to the scheme are expected
based on the financial costs and the prosperity of Beijing’s economy.
New Zealand: Labour Force Growth Set to Slow as Boomers Age (May
7, 2008)
According to recent projections by Statistics New Zealand, and for the first time in history, the labor force in New Zealand will decrease by 2011. Fifteen thousand fewer people are expected if both the birth and immigration rates keep decreasing. The birth rate will decrease to reach 1.9 children per woman by 2020, from about 2.1 today. In 2006, the median age for workers was 40; by 2011 it will be 42. This decrease raises questions about pensions: Who will pay for them and how can intergenerational solidarity be maintained?
China: Henan Province to Increase Pension Payout (May 5, 2008)
(Article in Chinese)
From 2010, pensioners will see their pensions increase 14% to 1200 Yuan per month from 1050 Yuan a month. The Henan pension system covers over 9.2 million people and in 2007 it took in 302 hundred million Yuan and paid out 237 hundred million Yuan. Total fund accumulation increased to 287 hundred million Yuan. Henan’s basic pension scheme has undergone five adjustments in the last eight years, increasing from 546Yuan per person monthly in 2003 to 1050Yuan in 2008.
China: Pension Fund to Double to 1 Trillion Yuan (April 15, 2008)
The National Social Security Fund (NSSF) is the national pension fund in China created in 2000. The government funds NSSF through state-owned shares. Economists expect this fund to double its income by 2010. Authorities plan to invest in various sectors, such as finance, energy and transportation.
India: Tips to Plan Early Retirement (April 15, 2008)
In this article, Amar Pandit gives tips to Indian workers who want to retire early. He explains how important it is to invest your money without taking too many risks and emphasizes the need to have a roof over your head before you retire. Also, a major priority is to save money for the younger generations, even in the case of an early retirement.
India: Pension Push to Widen Reach (April 14, 2008)
Many people accuse the Indian government of delaying the adoption of a good and affordable pension plan. Indeed, parliament just adopted a law that will extend the pension scheme for only 37 Indian people. There is increasing demand for a national pension plan. Representatives seem now to be considering private pension funds that workers would fund with their own salaries.
Japan: The Archipelago of Lost Pensions (March 28, 2008)
(Article in French)
The Japanese administration must face a major issue: find the owners of massive amounts of pension funds. From 1961 to
1997, workers got a notebook where the administration recorded their pension contributions. If they changed jobs, they got new notebooks, with new accounts. But in
1997, authorities wanted to merge all the accounts, a mistake that brought about a huge loss of data. Besides this problem, orthographic issues linked to the system computerization in the 80’s added to the mess. This loss of data has thrown the Japanese into panic. They wonder if the government has lost their pensions.
India: Now, Work Just 20 Years for Full Pension (March 25, 2008)
The Indian Government has proposed to raise the pension benefit for government workers. If the proposition is accepted, civil servants will have to work only 20 years, instead of the current 33 years to get a full pension. It is a very expensive measure that will lean on the taxpayers and will cost the government an additional Rs 1,365 crore per annum. Does the government want shorter careers for civil servants in order to open jobs to younger persons sooner?
Pakistan: OPF Reactivates Pension Scheme for Overseas Pakistanis (March 16, 2008)
In 2001, the Overseas Pakistanis Foundation (OPF) launched a pension plan for Pakistani citizens abroad. This measure was supposed to bring financial protection and rights for many Pakistani people who often send
home resources for the development of their country but don’t have social security. The plan
began in February 2008. Now, Pakistani's abroad can contribute to a social
insurance plan.
China: China’s New Empty Nest (March 10, 2008)
Economic development and social changes are threatening China’s multi-generation family pattern. There are discussions about phasing out the policy of allowing only one child per family. Many lonely elderly people are finding ways to have someone to talk to or take care of them. Despite several policies to build an elderly care and pension system as well as to educate young people about caring for and respecting seniors, the government
recognizes that its efforts cannot sufficiently support its aging population.
China: JiangSu Province: DongHai District Brought New Initiatives to Rural Pension (February 26, 2008)
(Article in Chinese)
DongHai District in JiangSu province has 960,000 rural residents, of which only 480,000 participate in the rural pension scheme. Nevertheless, its pension premium payment has far exceeded the assigned amount. The participation rate here is tops among
in the northern region of the province, and the government describes it as a “miracle.” This is due to several initiatives such as the “811 policy”, the “433 policy,” the 10-year guarantee policy, etc.
South Korea: Three Aims of South Korea’s Pro-Aging Policies (February 19, 2008)
(Article in Chinese)
The first policy aim is to ensure that seniors are financially stable. Each employee contributes a proportion of his or her monthly salary into a pension scheme. At 60 years, a sum equivalent to approximately 50% of the monthly salary can be drawn monthly. Needy elders over 70 years old will be given a maximum of 84,000 Korean Won monthly. The second aim is to provide good healthcare through specialized seniors’ hospitals and other long term care facilities. The third aim is to create opportunities for societal involvement such as 12 hour weekly jobs and working 7 months a year.
China: Research Paper Points Out Shortcomings in China’s Pension System (February 17, 2008)
(Article in Chinese)
After January 1, 2008, Beijing raised the average monthly pension payments per person from 1380 RMB to 1580
RMB. This is the highest increase since the establishment of the pension system began. However, a recently published paper from the University of Leicester pointed out two main shortcomings of the system: the gap between supply and demand, and a weakness in the management plan. The paper used UK policies as its system model.
China: New Application Procedures for Welfare Pension Payment (February 15, 2008)
(Article in Chinese)
The Beijing Municipal Labor and Social Security Department has announced a “Procedure for Pension Payment in Beijing Town/Village.” According to the new procedure, non-social security holders must apply for payment at local social security offices. Applications must pass eligibility verification at a higher-level office before any approvals are made. Processing time may take up to 20 days; after that, payments will be issued through bank accounts.
China: Beijing: 730,500 Elderly Residents To Receive Pension beginning May 2008 (January 30, 2008)
(Article in Chinese)
According to the Beijing Labor and Social Security Department, the city will implement new pension and rural insurance policies beginning in May 2008. Under the new policies, 700,000 elderly will receive pension payments and 30,500 others will get rural insurance. After completing this step, Beijing will become the first city in China to achieve full pension and insurance coverage.
China: Details About Beijing Pension and Insurance Schemes Implementation (January 29, 2008)
(Article in Chinese)
Beijing has organized an insurance and rural pension mobilization convention to introduce details of elderly insurance and rural pension plans. Under the two schemes, non-insured registered seniors over 60 years old will receive 200 Yuan per person monthly. The schemes also specify 5 types of seniors who do not qualify for the welfare pension grant. Those who are eligible have to apply for payment and will be paid through bank accounts.
China: Henan: Retirement Pension to Increase by 105 Yuan/Person/Month (January 25, 2008)
(Article in Chinese)
As of 2008, Henan province started pension adjustments for retirees from more than 190 enterprises. According to this plan, monthly pension payments will increase by 105 Yuan per person. Since 2005, the average pension has been raised by approximately 290 Yuan, reaching a total of 1,025 Yuan. The Henan Labor and Social Security Office confirmed that after three years pensions will reach 1,200 Yuan.
Japan: Half of Japan's Elderly Poor Won't Get Pensions, Nikkei Says (January 22, 2008)
As the total social welfare spending reaches 2.6 trillion Yen this year, Japan has realized its huge financial obligation for elder care. The number of older people relying on welfare has doubled in the last seven years. While the country tries to help its aging population, more than half of the 556,000 over-65 seniors will not have pension payments since they did not pay premiums for the required 25 years.
China: Number of Pensioners and Insurance-holders Exceed 200 Million (January 22, 2008)
(Article in Chinese)
According to the Chinese Ministry of Labor and Social Security, by the end of 2007, China had more than 200 million pensioners and over 220 million social insurance holders. Also, China basically completed its three-year pension adjustment objectives. Average pensions increased, reaching monthly payments of 963 Yuan per person.
China: Ministry of Labor and Social Security: Pension and Insurance Scheme To Be Reformed (January 21, 2008)
(Article in Chinese)
On January 21, the Chinese Ministry of Labor and Social Security conducted a press conference to discuss the achievements in 2007 and to introduce the plan for 2008. In 2008, the Ministry will focus on several items, namely pension scheme reform, rural pension policy, improvement of insurance coverage and health insurance for retirees and the poor. During the conference, the Ministry’s spokespersons also answered several questions on various topics.
China:
China Earmarks $2 Bln for Raising Retirement Pension This Year (January
16, 2008)
In contrast to the information contained in 'Lives of Poverty, Untouched by
China’s Boom', the Chinese Ministry of Finance announced January 15, 2007
that the government had raised money (14.92) billion Yuan for the
nation’s rural areas, to enable the retirees to have a pension. This news
may be good for poor older persons in rural areas. Let’s just hope that
the older people will receive this needed pension.
South
Korea: Social Consensus Crucial for Pension Reform (January 9, 2008)
The South Korean government is about to reform its pension system. A new
task force designated by the presidential transition team is currently
preparing the legislation. It seems that they plan will combine the
National Pension and the Basic Elderly Pension. However, according to the
authors, this is a very delicate matter. They urge the Korean
government to consult widely in the society about how to create and fund a
pension that will serve older Koreans well, both now and in the future.
China: Beijing Pension to Increase by 200 Yuan/Person – The Largest Increase Ever (January 8, 2008)
(Article in Chinese)
This year, Beijing city will introduce comprehensive pension adjustments. According to the plan, pensions for 1.67 million retirees will increase by 200 Yuan per person. Those who have lower pensions compared to the average level will receive 20 to 35 Yuan more per month. Senior technical staff, over-65 elderly persons and those who took part in the Revolution will also enjoy preferable policies. This is the largest increase since the initiation of the pension system.
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Europe
and Central Asia
Reports | Articles
Reports
Latvia: Life of Pension Recipients according to Statisticians (May 18, 2008)
In Latvia the birthrate increased last year while the rate of pension disbursements decreased. Unfortunately, the Latvian pension is so insignificant that it does not cover pensioners’ daily needs, forcing them to seek paid jobs. One in five persons, aged 62-74 years old, and about one seventh of working pensioners, are self-employed. One in twenty pensioners work but get no salary. They volunteer to help their families, in the home or on farms.
France: ‘Rendezvous 2008’ with
Pensions (April 2008)
After the presidential campaign Nicolas Sarkozy committed himself to balance the national pension fund in France, while maintaining the households’ purchasing power. The government will soon take measures to meet
this ‘rendezvous 2008’ with pensions. Representatives predict an approach in four directions: to encourage workers to stay longer in the workforce, to mobilize for greater employment of older persons, to increase purchasing power of citizens and to plan for next steps in the post- 2020 period.
United
Kingdom: Life Expectancy Gap at State Pension Age Set to Narrow
(January 2008)
This report focuses on life expectancy at the State Pension Age, showing
that life expectancy between men and women is narrowing and may stabilize
between 2021 and 2051. The study takes into consideration that the State
Pension Age may go up to 68 years old by 2046. It also explains that life
expectancy depends on individuals’ social backgrounds as men and women
in the so-called ‘professional’ class live longer. Workers in other
job categories face greater health risks and less income and die earlier.
Articles
Moldova: Pensions in Moldova and Pensions in Europe (June 24, 2008)
(Article in Russian)
Could you survive on a pension in Moldova? The author provides bitter facts, comparing pension levels in Moldova with those in Germany, Great Britain, Sweden and some other European states. Pensioners in Moldova get around $68 per month and a yearly pension indexation does not seem to make any difference due to high rates of price increases.
France: Miners Pension Fund
Sells its Building (June 11, 2008)
(Article in French)
The Miners Pension Fund has faced a large deficit since the 90’s when many mines closed, leaving about 200,000 retired miners and their beneficiaries (especially miners’ widows). Fund managers invested in real estate after World War II. In December 2006, they said they were going to sell
their buildings to make up the deficit. This article focuses on the conditions of the sale.
France: Seniors: Accumulated Money to Postpone Retirement Age (June 4, 2008)
(Article in French)
The employment rate of seniors over 55 years old is very low in France. To correct this situation, Laurent Wauquiez, French Labor Secretary, presented the new government’s plan. Three steps should be taken : first, economic sanctions for employers who do not employ seniors ; then, liberalizing the rules allowing seniors to accumulate pension money; and, finally, increasing the rate of senior pensions, meaning that the longer you work, the higher pension rate you have when you retire.
Czech Republic: Government Ups Pensions by 470 Crowns a Month (June 3, 2008)
The Czech Republic government has increased all types of pensions by 5.1 percent. The pension will reach 9616 crowns in August 2008. The increase was possible under a new law enabling pension indexation if the inflation rate exceeds 5 percent. The opposition claims the increase is not sufficient and proposes a subsidy of 6,000 crowns to each pensioner.
France: The Retirement System: Society’s Choice (May 30, 2008)
(Article in French)
France has a repartition pension system, which means that the younger generations pay for the older generations’ pensions. It is a social contract, a choice of society. But, since the 80’s, many in the French government want to pursue a neo-liberal approach, claiming that the social contract will ruin France. To the contrary, according to the authors, solutions exist to make the social contract carry on effectively.
France: French Pension Strike Sparks Numbers Battle (May 22, 2008)
French people are demonstrating throughout the country, especially in Paris and Marseille, to protest the government pension reform. The government wants French workers to work longer and contribute more to their pension plans. However, older workers have a very hard time finding a job or keeping their jobs in companies after they reach 55 years old. Shouldn’t the government first encourage senior workers before taking such measures? And clear away the roadblocks of age discrimination?
Russia: Real Incomes of War Veterans, Pensioners Must Be Raised – Putin (May 26, 2008)
Russia's Prime Minister Putin emphasized the need to raise incomes of WW II war veterans and pensioners and improve the quality of home care and conditions of medical treatment for veterans and disabled people. In addition, the government promised to increase pensions by 15 percent and implement a number of projects to provide veterans with apartments, cars and one-time cash compensation this year.
France: Pension, Unemployment, Employment; What You Should Expect. More Seniors at Work (May 19, 2008)
(Article in French)
The French government is encouraging seniors to stay in the labor market, or, if they already retired, to re-enter the job market. To that end, the government is enacting the following measures, as summarized by Notre Temps magazine. First, the government will reverse the law banning elderly people from working. . Second, the government will offer financial incentive to seniors who continue working. Lastly, the government will tax companies that don’t hire a “sufficient” number of seniors.
Russia: Russians See Benefits of Private Pensions (May 14, 2008)
Russian retirees are transferring their personal savings from state-owned pension companies to private fund managers. Previously, Russians have been wary of investing in private companies after a number of defaults in the 90’s. The situation is rapidly changing, since in 2008 the number of people investing in commercial pension funds has tripled compared to last year.
Russia: State Pensions in Russia to Grow 20% Annually in 2009-2011 (May 14, 2008)
The average Russian pension is expected to reach $179 per month in 2008 and grow 20% annually over the next three years. However, many retirees continue to struggle to afford basic goods due to the high inflation in 2008.
Malta: Government to Continue Pension Reform – Dalli (May 13, 2008)
Social Policy Minister John Dalli said representatives of Malta will continue to work on the pension reform plan begun two years ago. They plan to raise the retirement age and to introduce new pension funds. Mr Dalli pointed out that the challenge of aging was not only a pension issue but also one involving services, care and a suitable environment for elders.
Netherlands: More Willing to Work up to Pension Age (May 6, 2008)
The Netherlands Social Affairs Minister claimed in a new study that workers in his country understood they had to work longer. Indeed, the study showed that in 2005, only one out of five people was ready to work until age 65. It is one out of three today. Forty-four percent of people who are under 20 years of age said they want to work until 65. In the Netherlands, as in most European countries, the government is offering financial compensation as incentives for workers to continue to work and contribute to the pension fund.
France: Nicolas Sarkozy Announced a
Raise of 0.8% Pension Rate (May 6, 2008)
(Article in French)
Nicolas Sarkozy said he was aware of the consumer price increases and the drop
in French retired persons’ purchasing power. That is why he |
