Alliance Proposes Proportional Pensions for Citizens Who Paid Contributions but Have Not Completed 15 Years

RKS NEWS
RKS NEWS 9 Min Read
9 Min Read

The Alliance has proposed amendments to the Law on State-Financed Pension Schemes, aiming to enable citizens who paid pension contributions before January 1, 1999, but did not complete the required qualifying period, to receive a proportional contributory pension.

Alliance MP Teuta Haxhiu presented the proposal at a press conference, outlining the addition of a new Article 8/B, which would provide for pensions to be calculated proportionally based on the years, months and days for which citizens paid contributions.

Haxhiu said the proposal aims to address cases in which citizens are short by only a few months or days of meeting the required qualifying period. She stressed that existing pension schemes and the rights of those already receiving benefits under them would remain protected.

“Today, I am presenting a proposal to amend and supplement the Law on State-Financed Pension Schemes. This proposal has a clear objective: to enable citizens who have paid contributions but have not completed the required qualifying period to receive a contributory pension under the existing schemes.

“We are talking about people who worked and paid contributions before January 1, 1999. People with documented years of employment who are currently ineligible for a contributory pension because they do not meet the required period. Some are short by one year, others by several months, and some may be missing only a few days.

“The question we are raising today is simple: should being short by a few months or days deprive citizens of the opportunity to benefit from the years for which they paid contributions? I believe we must find a fair solution. If a person does not meet the qualifying period under the current pension requirements, they should have the opportunity to receive a pension proportional to the contributions they have paid,” Haxhiu said.

She clarified that the proposal would not change the eligibility requirements for the age-based contributory pension or the partial contributory pension for people who were dismissed from their jobs as a result of violent measures.

“I want to clarify an important issue for pensioners and their families from the outset. This proposal preserves the existing schemes and the rights of those who qualify under them.

“First, the age-based contributory pension regulated by Article 8 of the law will remain unchanged. Individuals who meet the requirements of this scheme will continue to receive benefits under the existing rules,” she emphasized.

“Second, the partial contributory pension regulated by Article 8/A, for people dismissed from their jobs as a result of violent measures, will also be preserved. The conditions of this scheme and the current method of calculating pensions will remain unchanged. The provisions recognizing the consequences of forced dismissal will remain in force. The period credited to these citizens towards meeting the eligibility requirements will continue to be treated in accordance with the existing law,” she said.

Haxhiu stressed that the new proportional pension would be considered only in cases where citizens do not meet the requirements for either of the two existing schemes.

“This protection applies both to pensioners who are receiving benefits today and to citizens who meet the requirements and will apply in the future.

“Third, we propose adding a new Article 8/B. This would create the possibility of a proportional contributory pension for citizens who have paid contributions but do not qualify under the two previous provisions because their contribution period is insufficient,” she said.

“In other words, the administration must first determine whether a citizen is entitled to benefits under the existing schemes. It must also take into account the period recognized in connection with dismissal resulting from violent measures, where the legal conditions are met.

“If the citizen qualifies, their pension will be determined under the relevant scheme. If they do not meet the required period, their eligibility for the new proportional pension will then be considered. No one who qualifies under the existing schemes will be transferred to the new formula as a result of this proposal.

“The word ‘proportional’ may sound technical, but its meaning is very simple: the pension is calculated according to the years, months and days for which contributions were paid,” Haxhiu explained.

To illustrate how the calculation would work, Haxhiu used an example involving a pension of €300, divided across 15 years of contributions, resulting in a monthly pension of €20 for each year of contributions.

“Let me explain with an example. If the full contributory pension for the relevant category were €300 per month, we would divide that amount by 15. The result would be a monthly pension of €20 for each year of contributions.

“A citizen with 14 years of contributions would receive €280 per month. Someone with 14 years and six months of contributions would receive €290 per month. A citizen with 12 years of contributions would receive €240 per month,” she added.

She noted that the €300 figure was purely illustrative and that the actual calculation would depend on the applicable pension amount for the relevant category and the documented contribution period.

“The €300 amount is only an example to explain the calculation. The actual amount will depend on the pension in force for the relevant category and the documented contribution period.

“Months and days will also be included in the calculation. If we want to provide a solution even to citizens who are short by only a few days of meeting the required period, then every day of their contributions must be taken into account,” she said.

According to Haxhiu, the proposal would also allow people whose previous pension applications were rejected because they had not completed the required contribution period to apply again.

“The proposal gives people whose applications were previously rejected because of an insufficient contribution period the opportunity to apply again. Valid documents already held in their files will be used during the review process. Citizens should not be forced to resubmit documents that the administration already has.

“The proportional pension would also be adjusted whenever the amount of the contributory pension used as the basis for its calculation changes. This adjustment would be carried out by the administration, without requiring a new application from the pensioner,” she said.

Finally, Haxhiu said implementing the proposal would require budgetary resources, as well as an assessment of the number of citizens who could benefit and the overall cost of payments. She invited parliamentary groups and the relevant institutions to contribute to its review.

“Implementing this proposal will also require budgetary resources. Therefore, accurate data is needed on the number of citizens who could benefit, their contribution periods and the cost of payments.

“This assessment must be carried out together with the responsible institutions, so that the right we are proposing is accompanied by the necessary funding.

“This is a draft law that must go through the parliamentary review and approval process. I invite parliamentary groups to examine it seriously. I also invite the responsible institutions, pensioners’ representatives and trade unions to contribute their data, experience and observations,” Haxhiu said.