MSZP and Jobbik would ease pension eligibility

Népszava carries an angry reaction to parallel proposals from the Socialists and Jobbik which would allow men to retire after 40 or 41 years of service. The 40 year rule was introduced for women at the proposal of the Christian Democratic Party in 2010.

In his guest comment in Népszava, Ferenc Dávid, the secretary of VOSZ, an employers’ association, warns that plans to  allow hundreds of thousands of people to retire early are irresponsible. Parliament held a debate on the issue in late November, and Dávid finds it sad that no MPs had the courage to explain that the idea is unsustainable. The workforce is shrinking, while the number of people in retirement is increasing, he explains. He finds it obvious that the ensuing loss in contributions and the increase in pensions will compel the budget to inject hundreds of billions into the pension fund, if the proposal were to be accepted. He fears that with the 2018 elections approaching, political forces will continue to make irresponsible offers. He proposes a compromise, whereby early retirement schemes could be introduced with heavy pension penalties for those who choose to retire before the standard age.  Men retiring three years before the retirement age of 65, he suggests, might have their pensions reduced by 6 to 7 per cent.

Tags: pensions