In response to current pension reform proposals, the Left Party has denounced the push for reduced expenses and called for increased revenue measures to sustain the system.
The Left Party (Déi Lénk) has strongly criticised the ongoing discussions about pension reform in Luxembourg, arguing against the proposed cuts to expenses and advocating for increased revenues.
According to the opposition party, the current proposals involve dismantling the existing system in favour of additional pension insurance or accelerating negative elements from the 2012 reform, such as freezing pension adjustments. Marc Baum from the Left Party argues that this shift away from a solidarity-based system relies on "catastrophic projections."
Baum described these calculations as "horror projections," which assume that the pension system is no longer viable. He criticised the reliance on long-term projections up to 2070, pointing out that past projections have consistently proven incorrect. Baum advises caution regarding these forecasts.
Instead of cutting expenses, the Left Party advocates for increasing revenue. The party proposes removing the contribution cap and implementing contributions on all forms of work, including overtime and vocational training.
They also recommend maintaining the 13th pension month and pension adjustments. Additionally, the party suggests raising contributions from 3 times 8% to 3 times 9% and increasing the minimum pension to the level of the minimum wage.
Other measures proposed by the Left Party include 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?
