EP plenary session: Pension reforms should ensure sustainability and adequate income
17 February 2011
Member States must act to ensure that pension schemes can sustainably deliver an adequate income to the EU's growing number of retired people, despite the economic crisis,according to a Parliament resolution adopted in Strasburg.
Pension portability must also be addressed, as must inequalities be faced by women and older workers, stress MEPs.
"At present there are four people of working age for every person over 65, by 2060 there will be just two", says a European Commission Green Paper, to which the European Parliament resolution is a response.
The resolution was approved by 535 votes to 85 with 57 abstentions. Ria Oomen-Ruijten (EPP, NL), who drafted the resolution, commented that "although Member States play the lead role, there are aspects where coordination at European level is important. The ageing of the population has a big impact because not all Member States have put money aside for their pensions. This could lead to enormous expenses which will have consequences for the Stability and Growth Pact. The supervising authority should monitor pension systems and some Member States must be encouraged to provide for a safe and adequate pension system".
Economic pressures
Responsibility for pensions lies with Member States, which are re-evaluating or reforming their schemes in the light of the current economic situation and the ageing of their populations. MEPs urge EU countries to maintain "stable, reliable and sustainable" pension systems as well as adequate retirement allowance levels to combat poverty in old age. Proper consultation should take place before making changes, they add.
Portable pensions
Europeans usually work for several employers during their careers, and many spend periods working in different EU countries. MEPs want the EU and Member States to remove obstacles to mobility and address pension transferability difficulties within and between EU Member States. For example, they say retirement plans should not require long contribution periods to be valid.
© European Parliament
