Pension reform: for a balanced and sustainable system

Luxembourg, 07 November 2024 - Faced with the major issues raised by pension reform, ALEBA wishes to propose solutions aimed at ensuring sustainable and fair protection of workers' rights and calls for an open and balanced debate, based on medium-term forecasts and inclusive solutions for all pension schemes. As usual and as a fervent defender of social dialogue, ALEBA is ready to engage in constructive and far-sighted dialogue to guarantee the stability and fairness of the system.

The future of pensions threatened by long-term projections

With a pension fund now worth 24 billion euros, ALEBA believes it is high time to break with the often erroneous long-term forecasts and refocus the discussion on concrete solutions. Workers, who have been contributing to this fund for decades, must not see their rights threatened by speculation 20 or 30 years ahead. We advocate a strategic and balanced approach over the medium term, which these comfortable reserves allow us to take, in order to avoid hasty measures and offer employees realistic prospects. 

ALEBA defends fair and sustainable pensions

ALEBA insists on a number of fundamental principles for a fair and sustainable reform:

• Maintaining the legal retirement age of 65: We strongly defend maintaining the current legal retirement age, while calling for the arduous nature of work and end-of-career conditions to finally be taken into account. Raising the retirement age would unfairly penalise long-career workers.
• Protection of low-paid workers: It is unacceptable that retired workers should struggle to live in dignity after a lifetime of hard work. ALEBA is calling for stronger rights for employees on low incomes and is campaigning for an increase in the minimum pension, so that it rises above the poverty line!
• General pension reform: ALEBA advocates harmonisation of all schemes to guarantee fair treatment and ensure the sustainability of pensions for future generations.
• No compromise on the end-of-year bonus: The reform must under no circumstances affect this essential bonus for many households. Any attempt to link an increase in contributions to the abolition of the end-of-year bonus will be resolutely opposed.
• Gender equality: ALEBA recommends reforms to reduce gender-based pension disparities, including measures for career breaks due to family reasons.

 Concrete, well-thought-out financing measures

ALEBA is not simply criticising: we are proposing solid and fair solutions to make the system sustainable without compromising social benefits. Our proposals include lifting the ceiling on social security contributions, currently set at 154,000 euros per year, an option that would generate additional income without increasing the burden on low earners. In addition, we defend the use of financial reserves, which are there precisely to meet the needs of current generations.

We also propose taxes on super-profits and AI to offset job and revenue losses and fund training for new occupations.

On the other hand, we are calling for the introduction of measures to keep older people in employment, such as reducing or exempting employers' contributions without affecting social security contributions.

We also insist on gender equality, with specific measures to close the pension gaps caused by career breaks for family reasons. Women, who are often penalised by interrupted careers, must be better protected in a system that aims to be fair.

Call for collaboration

ALEBA, which represents the interests of thousands of employees, will be meeting the Minister for Health and Social Security, Mrs Deprez, on 19 November to discuss of union involvement in the reform process. Luxembourg employees deserve strong and committed representatives to defend their rights; ALEBA is committed to holding this front line. We undertake to communicate the details of our demands and the outcome of our meeting with the Minister.