Minister Liisa Hyssälä: Old-age pension reform also calls for improvements to working conditions

Liisa Hyssälä

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In the view of Minister of Social Affairs and Health Liisa Hyssälä (Centre), the employee organisations have viewed the planned old-age pension reform from a too limited viewpoint. Hyssälä is of the opinion that working conditions also need to be developed.
      Last week the government announced its plan to raise the minimum age for an old-age pension in stages to 65 years from the present 63, sparking widespread anger from the opposition benches and trade union representatives alike.
     
”Continuing working will be possible only if the ability to work and knowing how will be promoted and if the occupational health, rehabilitation, and adult education services will be retargeted”, Hyssälä told Helsingin Sanomat on Monday.
      The employee organisations SAK, STTK, and AKAVA announced on Monday that they would not take part in the work of the government-appointed SATA committee, which is currently working on a proposal for overall reform of social security, until they have received a clear determination from the government’s part on whether the pension benefits will be further tightened from what has already been agreed or not.
      Prime Minister Matti Vanhanen (Centre) resorted to saying on Monday that he would discuss the matter with the organisations of wage earners this week. Minister of Finance Jyrki Katainen (Nat. Coalition) refrained from commenting on the issue while on holiday.
     
Especially those Finns born after 1958 were affected by the previous pension reform, as politicians were afraid to meddle with the benefits of the large age-cohorts. Now, again the same age group will suffer if the age limit of the old-age pension is raised.
      Hyssälä ofers the reminder that at the moment the Finns retire on average at the age of 59.4 years, conspicuously earlier than elsewhere in the Nordic region.
      “Funding for the nation’s welfare services and social security has to be secured sustainably also in the future”, she says. Hyssälä also points out that the raising of the pension age will not reach its full effect until 2022.
     
Hyssälä reckons that by then the problem may not be seen as such a big deal any more. “Since 1970 our life expectancy has seen an increase by two years per each decade.”
      The labour market organisations agreed with the government in January on postponing the start of the retirement pipeline by one year to 58 years and the start of the part-time pension by two years to 62. Furthermore, conditions for job rotation were tightened. Now the employee side is wondering if the government is committed to these decisions.
      Hyssälä points out that the SATA Committee itself has agreed to estimate in the future if the decisions already made will have to be “reinforced” in order the secure the funding for the country’s social security.
      She wishes the wage earners would return to the negotiating table as quickly as possible.
      “These are big questions we are dealing with. Everybody’s contribution is needed in resolving them”, Hyssälä emphasises.
     
SATA Committee chairman Markku Lehto said on Monday that the committee would continue its work as normal. Representing the employer side, the Confederation of Finnish Industries EK expert Vesa Rantahalvari says that EK takes part in the committee’s work and expects that the social incomes policy determinations will be introduced as agreed.
      “Should there be something else on top of that, those matters will be dealt with in the future.”


Previously in HS International Edition:
  Opposition parties hint at general strike to support vote of confidence over retirement age plans (27.2.2009)
  Organised labour angered by government decision on old-age pensions (26.2.2009)
  Government decides on gradual raising of minimum age for old-age pension to 65 (25.2.2009)
  Report calls for nearly 5-year increase in retirement age (23.1.2009)
  10,000 Finns will reach retirement age in September (8.9.2008)

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