Finland Times

 

Defense Minister Carl Haglund. File Photo – Lehtikuva.

The Defence Minister, Carl Haglund on Saturday termed the proposed reform in the pension system agreed by the Labour market organisations as problematic.

 

Haglund, also the chief of the Suomen Ruotsalainen Kansanpuolue (Swedish People’s Party of Finland-RKP), one of the components of the four-party alliance government spoke at a party programme in Ostrobothnia when he said that the reform would not encourage to extend careers as it would not provide any incentive for workers.

 

“The proposed solution does not contain elements that support peoples well-being at work,” said the minister.

 

The Minister considers particularly highly educated women to lose in this solution, when the pension does no longer accumulate towards the end of the career like in former model. 

 

Haglund, however, said that bringing reform in the pension system is necessary and the government should take it in consideration seriously that one of the biggest confederations Akava did not accept the solution. 

 

He pointed out that Akava represents 600,000 employees in the country.

 

“ It would be interesting to know what kind of tone the pension discussion would have, if for example, the SAK would not have approved the pension settlement,” Haglund said.

 

Labour market organisations last week have reached an agreement on the retirement age during a negotiation on the pension reform system.

 

After a lengthy deliberation, the organisations reached the consensus to increase the age to 65. The new retirement age will be applicable to those born in 1955 and onwards.

 

As per the reform plan, the retirement age will increase progressively by three months per year, so that for a person born in 1955 the age will be 63 years and three months and for a person born in 1958 it will be 64.

 

The agreement was reached between two trade unions – Central Organisation of Finnish Trade Unions-SAK and STTK – and the Confederation of Finnish Industries and Local Government Employers-KT. Akava, a trade union confederation of affiliates for highly educated people, did not take part in the negotiations on lifting the retirement age.