PES : provide pensioners with an adequate income', argues Mia De Vits

[Politics.be]

'Budgetary consolidation must not diminish Member States' responsibility to provide pensioners with an adequate income', argues Mia De VitsPlenary Session of the Committee of the Regions, Brussels, 28 January 2011In response to the European Commission's 'Green Paper towards adequate, sustainable and safe European pension systems', the Committee of the Regions adopted today the opinion of Socialist member Mia De Vits, Vice-President of the Flemish Parliament (Belgium).

While keeping at bay attempts to put into question the fundamental role of public pensions in ensuring dignified ageing and social cohesion, the rapporteur underlined that such pensions embody the solidarity principle between workers and pensioners. 'Public pension systems are the tangible manifestation of inter- and intra-generational solidarity, this is why their adequacy and sustainability must be safeguarded', she pointed out.

Mia De Vits stressed that adequacy gaps within pension schemes have a direct impact on the provision of social and welfare services by local and regional authorities, which should play their full part in the pension debate, not least in their capacity as the biggest public sector employers in the EU.

Acknowledging the important complementary nature of occupational pensions to pay-as-you go schemes, the rapporteur called for their democratisation and insisted on the need for an appropriate safety framework, based on the lessons learned from the financial and economic crisis. 'People's pensions savings can no longer be subject to financial market speculation', insisted Mia De Vits, urging for better risk mitigation, enhanced capacity for shock absorption, clearer information about the risks and returns of different investment options and more efficient administration.

The PES Group rapporteur also urged Member States to foster a multi-dimensional approach in their strategies for adequate and sustainable pension systems, considering policy areas relevant to education, social inclusion, poverty, the labour market or healthcare, all of which are to a great extent the shared responsibility of local and regional authorities. They should also address the gender dimension, taking into account differences between the two sexes in terms of life expectancy, career paths and provision of personal care. Furthermore, these measures need to be accompanied by an investment agenda aimed at promoting economic growth and employment.

Finally, Mia De Vits pleaded for a balanced approach that decreases early retirement incentives and increases those raising the effective retirement age in an effort to ensure the financial sustainability of retirement pensions. 'Public and occupational pension schemes must not be taken hostage by budgetary consolidation', she reiterated, pointing out that one-size-fits-all measures are likely to penalise vulnerable groups of current of future pensioners.

Overall, the debate demonstrated that the CoR opinion successfully addresses the need for both sustained policy remedies and effective responses to subsequent social challenges arising from the reform of public and private pension schemes.
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Bron: politics.be