Opposition calls for pension fund reform amid budget discussions

The Albanian Parliament has seen renewed calls for a dedicated pension fund during ongoing debates about pension reforms. Opposition MPs argue that a sustainable fund is essential to address the long-standing issues of low pensions.

Why is this important: Pension reform has become a central issue in Albania, where approximately 300,000 retirees live on very low monthly incomes. Opposition MPs emphasize that current government measures, including periodic bonuses, are insufficient to address the systemic shortcomings in the pension system. The government’s proposed “Spring Bonus,” while welcomed, is criticized as a temporary fix rather than a long-term solution.

Context: Prime Minister Edi Rama has proposed creating a fund at the Bank of Albania to allocate a bonus for pensioners. While this initiative reflects Albania’s economic growth, opposition MPs argue that the fund must support structural pension increases, not just periodic bonuses.

In a session of the Economic and Finance Committee, Democratic Party MP Jorida Tabaku noted that a sustainable pension fund should ensure regular increases in pensions and prevent political exploitation during election years. She criticized the current government, citing unfulfilled promises tied to one-off payments.

Another prominent opposition MP, Movement for National Development Chairman Dashamir Shehu proposed a €300 million allocation to the pension fund, partly sourced from underutilized investments in 2023. He suggested this would enable an increase in monthly pensions to €250 per person. “Raising public debt slightly in this context is not a crisis—it’s a solution,” Shehu argued.

What are they saying: 

• The opposition recommends a structural increase in pensions, better indexing, and a €200 minimum subsistence level.
• The government prefers continued bonuses, including a year-end bonus and a new Spring Bonus. Prime Minister Rama has pledged that more significant reforms would only be possible in a future term.

What’s Next: Outside the parliament, pensioners and opposition supporters held protests, demanding immediate action on pension increases and criticizing the government for its perceived failure to address rising living costs. It is likely that pension reform proposals will be revisited in upcoming budget sessions. Whether the government will incorporate the opposition’s recommendations remains to be seen, but the issue of pensions is expected to shape political narratives heading into next year’s elections.