The party remains visibly shocked by Prime Minister Luc Frieden’s announcement in his State of the Nation address, particularly the decision to raise the retirement age to 65. MP Taina Bofferding called the move outrageous, even going so far as to describe it as socially regressive.
Bofferding criticised the government’s reasoning, which links the retirement age to rising life expectancy. She said it was both arrogant and insulting to suggest that simply because people are living longer, they should also be expected to remain healthy and fit enough to work longer.
For the Luxembourg Socialist Workers’ Party (LSAP), she added, this mindset overlooks the real challenges workers face and constitutes an unfair, anti-social measure.
Instead of raising the retirement age, the LSAP proposes redirecting attention to the country’s pension reserve fund, which currently holds over €25 billion. MP Ben Polidori emphasised that the fund was specifically designed to cushion the system during difficult times like the present and should be used as intended.
The party also believes that the administrative costs of the National Pension Insurance Fund (CNAP), which are currently deducted from workers’ contributions, should be financed separately, in order to relieve pressure on the pension system itself and ensure greater long-term stability.
Another key proposal is the removal of the existing contribution ceiling for high earners. As it stands, people earning more than €13,000 gross per month are not required to contribute beyond a capped amount. The LSAP argues that lifting this limit would ensure fairer contributions from top earners and strengthen pension reserves without burdening average workers.
If further measures prove necessary, the LSAP is open to the idea of modestly raising the contribution rate – from 8% to 9% – with the increase distributed equally among the state, employers, and employees.
Finally, the party suggests introducing a tiered solidarity contribution based on income, which could be activated as needed to address any potential deficits in the pension system. Such a mechanism, they argue, would be fairer and more sustainable than increasing the working life of the population across the board.
The LSAP made it clear that they fundamentally disagree with Frieden on this issue and intend to preserve the tradition of social dialogue as discussions move forward.
The party is now expecting urgent clarification from Minister for Social Security Martine Deprez. She is scheduled to appear before the relevant parliamentary committee on Wednesday morning and will follow up with a press briefing, which can be streamed live at 11am on Saturday via rtl.lu.
