1987. Különkiadvány, 1987.10.01 / HU_BFL_XIV_47_2
The purpose of thie solution vould be to make tbe poor village-supporting citirens vhose vote vould tbus carry veigbt in tbe local government1e development decieions. 4.3 An Equitable Pension System Tbe govermneDt bas been misleading society fór decades, vith claima that tbe State is making ezceptional sacrifices fór tbe elderly. It does admit that a pension is nőt charity, bút a right acquired by vork and by contributing to the pension fund. Hovever, tbe government neglects to mention that, year after year, employees pay intő tbe State treasury the amounts apent on social-security benefits, including pensions. The enterprises pay 40 percent of their vage bili as social-security contribution, and employees contribute betveen 7 and 12 percent of tbeir pay. Jointly this amounts to about 50 percent of take-bome pay. Social- security contributions totaled 135.3 billión forints in 1986, and the benefits paid amounted to 131.5 billión forints. In tbe matter of social- security insurance, then, society is entirely self-sufficient. Bút tbis is nőt mucb consolation, becsüse tbe purchasing pover of pensions has been declining at an incredible rate. Tbe vorker vbo had retired in 1980 on a [monthly] pension of 3200 forints, vhicb is about average, found that bis pension vas vorth 17 percent less in 1986; and tbose vbo bad retired on a pension of 5000 forint6 found tbat their pension lost 23 percent of its value by 1986. Orgent action is necessary to balt tbe retired population's absolute pauperization. And in tbe long term the pension system itself vili have to be cbanged so that it vorks more efficiently and more fairly. In the sbort term, immediate action is needed to alleviate the flagrant injustices in connection vith paying pensions.- The minimum pension is one-third of average pay, vbile the maximum is tbree times average pay. Tbe lövést pensions ougbt to be raised to half of average pay, bút at least to tbe subsistence level. In viev of tbe difficult economic situation, ve migbt consider vhetber it vould be fair to limit tbe maximum pension to tvice average pay (except in tbe case of retirees vho qualified fór exceptional pensions tbrough heavy pbysical labor).- Instead of raising pensions by a specified percentage, pensions should be adjusted each year to the vage index.- The requirement of a minimál length of service to qualify fór a pension should be abolished. Retirees vith less than 20 years of service should be éntitled to a reduced pension.- Termination of employment must nőt cancel tbe years of service already accrued. L,t 4 41
