However, Minister of Social Security Claude Haagen from the Luxembourg Socialist Workers’ Party (LSAP) and MP Marc Spautz from the Christian Social People’s Party (CSV) assure the public that there is no cause for alarm.
Haagen clarifies that the deficit does not imply any actual losses. It is “merely an estimate or evaluation, as is standard practice in accounting,” and “nothing has been sold.” In fact, the Compensation Fund’s performance stands favourably in international comparison, with investments already surpassing €1.3 billion in the first half of 2023, Haagen notes.
Addressing previous criticisms of the fund’s highly polluting investments in fossil fuels, a new investment strategy aligned with the Paris climate agreement will be implemented. Both parties support the climate agreement, but their primary focus remains on the welfare of the insured.
While the impact of the new strategy will unfold in the coming years, neither Haagen nor Spautz see an immediate need to reform the pension system. Presently, more funds are entering the system than being disbursed. A technical assessment conducted in 2022 indicates that the system will maintain balance until 2041, assuming annual employment growth of over 2%.
Despite the optimistic outlook, the politicians caution that vigilance is necessary, though no one can predict the future with certainty.
Full report by RTL Télé (in Luxembourgish)
