Structural reform instead of symbolic politicsDemocratic Party youth wing calls for bolder pension reform

RTL Today
The Young Democrats (JDL), the youth wing of the Democratic Party (DP), issued a rare and pointed statement Monday morning, expressing serious concern over the ongoing social dialogue between the government, employers, and trade unions on pension reform.
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In a veiled criticism of their own mother party, the Democratic Party (DP), the youth branch denounced what they see as superficial changes lacking long-term vision. The measures currently being discussed, they argue, are insufficient and fail to address the needs of future generations. Rather than adopting courageous decisions, the authorities are accused of relying on symbolic politics, described as cosmetic adjustments that ignore the fundamental interests of younger people.

In response, the JDL are calling for a more ambitious and equitable reform. They propose raising pension contributions by a full percentage point to 9%, instead of the modest 0.5% currently under discussion. According to their analysis, this would keep the system in balance for six additional years, while a smaller increase would only provide a short-lived improvement lasting three years.

They also advocate for a socially just phasing-out of the pension adjustment and the year-end bonus, suggesting that these should remain in place for those receiving only the minimum pension, while being gradually reduced for those on higher pensions, eventually disappearing altogether beyond a certain threshold. The JDL reminds policymakers that the 2012 reform already anticipated such changes once pension expenditure exceeded revenues or contributions were raised, and warns against reversing that progress.

Moreover, the youth party calls for an accelerated reduction of the pension escalation rate. The current plan extends this reduction over 40 years, only reaching the target rate of 1.6% by 2052, they state. To have any real impact on the system’s sustainability, they argue, this change must be implemented more rapidly.

Lastly, they criticise the government’s proposal to increase contribution years by just eight months over the next five years, describing it as inadequate given demographic trends. They also point out the lack of clarity over when such measures would actually take effect, warning that a delayed implementation, such as the originally planned start in 2030, would do little to improve the system’s stability.

The Young Democrats insist that Luxembourg needs a pension reform guided by long-term responsibility rather than short-term electoral calculation. They stress that employers and trade unions also bear responsibility and must engage constructively in the debate. For the JDL, only structural reforms, not symbolic gestures, will ensure a stable and sustainable pension system for all generations.

PDF: Press release in Luxembourgish

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