Topical Development Projects
The Government Programme of 2019 states changes that need to be made to pension provision. In addition, the central labour market organisations have reached a mutual agreement on how to develop earnings-related pensions. The issues listed below are mentioned in the Government Programme and/or the pension agreement.
Merging of pension systems
It is suggested that the municipal and private sector earnings-related pension systems for employees be merged. The current rules for how earnings-related pensions are determined are largely identical. For example, due to transitional rules, municipal employees have retirement ages that deviate from the general ones. In addition, the financing of pensions differs considerably.
The tripartite working group is currently preparing an implementing plan based on previous studies. The deadline of the working group is the end of December 2021.
Improving work incentives for the partially disabled
Means to improve the incentives to work while drawing a partial disability pension have been prepared since the previous Government. A tripartite working group is currently preparing the proposal and the plan to implement the new system. The aim is to prepare a Government proposal of a so-called linear model for Parliament by the end of 2021. The amendment would take effect in 2023.
Survivors’ pension reform
Changes to survivors’ pensions are proposed based on a previous report so that, among other things, the surviving spouse’s pension would be paid for a fixed period of time and the orphan’s pension would be paid for an extended period of time. A tripartite working group is preparing the government bill. The plan is to bring the reform into force at the beginning of 2022.
The pension reform of self-employed persons
A reform of the pension system for the self-employed was considered already by the previous Government. The work is now proposed to be continued. One of the aims is that the income from self-employment would better correspond to the factual income of the self-employed, improving the pensions of the self-employed. The tripartite working group is expected to start its work in 2020. A government bill is expected to be presented during the current term of government.
Overall reform of social security
An overall reform of social security written in the Government Programme was launched in the spring of 2020. A parliamentary committee that will prepare this reform was appointed in March 2020. Its term of office will span until the spring of 2027.