Brussels, 10/02/2011 (Agence Europe) - The pension systems in Europe are under pressure due to the ageing population and reduced resources for pension funds across Europe. From 2012 onwards, the population of working-age will start to fall, which is why there is an urgent need to take action. Many member states have started to reform their pensions systems in varying degrees in order to meet these challenges, but the economic and financial crisis has further accentuated the urgency of the situation.
What reforms are needed to maintain an adequate standard of living after retirement? Should the EU set or raise the retirement age? How can the mobility and portability of pension rights be increased while taking account of the constraints of certain member states? These are some of the questions which were tackled at a seminar of the ALDE group in Brussels on Thursday 10 February, entitled Pension Reform: Make or Break. The session was attended by representatives of the European institutions, universities, trades unions and pension funds. It makes a contribution from ALDE to the debate launched by the Commission as part of its Green Paper of July 2012 on adequate, viable and safe pensions systems. The seminar was co-chaired by Dirk Sterckx of Belgium and Ireland's Marian Harkin, and was attended by Commissioner László Andor (employment, social affairs, inclusion).
Hans Martens (European Policy Centre) said that he agreed with Andor that there is a need to revise the retirement age, linking it to life expectancy, and that this revision should be carried out every two years. The Dane believes that “no reform means more inequalities in Europe”.
Dirk Sluimers of the Netherlands (APG Group) believes that the EU should provide pension funds with (1) an adequate solvency regime, which should also recognise the specific regimes of the pensions systems, (2) sustainable public finances by means of financial discipline. Account should also be taken of inflation, which could undermine the third item, (3) use of derivative products. Dirk Sluimers said that he was not in favour of this system.
Henri Lourdelle (European Trade Union Confederation) said that he was in favour of increasing the effective retirement age, subject to a series of conditions (job development strategies, therefore investments implemented by the business; investments for lifelong learning; the implementation of an active strategy to help people who have lost their jobs back into work). “Guaranteeing pensions and pension levels means guaranteeing the quality of employment and salaries, because that is how we pay for social protection and, therefore, for pensions”, said the French adviser. Returning to the issue of the demographic challenge to be met, which had been raised by Commissioner Andor, Henri Lourdelle stressed that “what is interesting and important for our unions is the ratio of economic dependence, the relationship between those who work, who provide wealth and improve growth, and those who are not or are no longer on the employment market. This is where we must act and work, in other words the quality of non-precarious jobs and salaries”. The French unionist argued that the further away in time demographic projections are (2050, 2060, etc), the less reliable they are. “The real battle is fighting for more and better jobs and salaries.” He concluded: “Just one watchword: we need to guarantee the funding and the systems of social protection by developing quality jobs and salaries. We need to put social issues at the heart of the EU strategy 2020 and get the European citizens involved in European integration, which they too often see as a purely economic and financial construct”.
“It is extremely important to have a European framework to communicate to future pensioners what they will get out of pension funds. Personally, I want to know how much I will get when I retire. There is also a need for transparency in the pension funds”, said Karel Van Hulle (European Commission). As regards the next step, Karel Van Hulle reminded participants that a public hearing on the revision of the directive will take place on 22 September 2011 and that in December of the same year, the Commission is to present its proposed revised IORP directive.
In the view of Joachim Schwind (Hoechst): “We need to push forward professional pensions and cover the systems funded by age”. The secretary general of the EFRP (European Federation for Retirement Provision), Chris Verhagen, stressed the diversity of pensions. As regards the question of transferring pensions regimes, the experts called to be able to “preserve pensions regimes via a register and traceability system”. Lastly, Fritz von Nordheim (European Commission) announced the publication of a White Paper on pensions in the third quarter of 2011. (G.B./transl.fl)