TALLINN — Estonia’s parliament agreed to send the State Pension Insurance Act amendment draft to the third reading Wednesday despite stiff resistance from the Center Party.

The retirement age debate has been raging in Estonia, as the country seeks to find a solution to the demographic problem of an aging population and shrinking labor pool. By raising the retirement age, the country would also become more competitive compared to its European counterparts.

The second reading started on Tuesday at 6 p.m. and stretched until 9 p.m. as the Center Party asked for a 10-minute coffee break after voting on each [private_supervisor]paragraph to protest against the retirement age increase.

Finally the coalition settled on an agreement with the Center Party not to adopt the act Wednesday as was planned, but postponed the final vote until April 7.

Following the agreement, the reading finished rapidly and the third reading where it passed 54-36 with 7 abstentions.

The State Pension Insurance Act amendment draft was initiated by the government on Jan.11. The ruling coalition is seeking to equalize the pension age for men and women from 2017 by increasing it by three months per year until 2027, when the retirement age will be 65 for both sexes. Currently men retire at 63 and women at 60 and a half.

Riigikogu still deeply divided

The Center Party remains dead-set against the reform. Kadri Simson, vice chair of the Center Party said in an interview with TV3 Tuesday that her party will do everything to block the bill’s passage.

“The Center Party is using all kinds of methods to prevent the adoption of this act so rapidly,” said Simson.

Simson said that if all 100,000 of the country’s unemployed were put to work then the situation of funding pensions would be solved. She also promised that if Center Party were elected into the ruling majority that they would repeal the act.

The People’s Union is backing the Center Party and wants coalition to rethink the draft from the parliament as it is poorly prepared and that the government should instead focus on employment and health issues.

“The government is relying on data from 2007, which does not reflect the socioeconomic crisis nor the indicators of unemployment,” Mai Treial, deputy chairman of the People’s Union faction told the press. “It is outrageous that it is considered appropriate to raise the retirement age in a crisis.”

The coalition says the reform is a must-do considering Estonia’s demographic trends. Parliamentarian Tõnis Kõiv of the Reform Party told the press Wednesday that it is necessary to raise the retirement age so it would not be necessary to reduce pensions or raise the social tax in future.

Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica said that raising the retirement age must happen to ensure adequate care for the elderly.

“The country is obligated to ensure resources for pension payments,” Tsahkna told Baltic Reports. “It is a structural change in fiscal policy, which in the long term reduces the burden on the budget.” [/private_supervisor] [private_subscription 1 month]paragraph to protest against the retirement age increase.

Finally the coalition settled on an agreement with the Center Party not to adopt the act Wednesday as was planned, but postponed the final vote until April 7.

Following the agreement, the reading finished rapidly and the third reading where it passed 54-36 with 7 abstentions.

The State Pension Insurance Act amendment draft was initiated by the government on Jan.11. The ruling coalition is seeking to equalize the pension age for men and women from 2017 by increasing it by three months per year until 2027, when the retirement age will be 65 for both sexes. Currently men retire at 63 and women at 60 and a half.

Riigikogu still deeply divided

The Center Party remains dead-set against the reform. Kadri Simson, vice chair of the Center Party said in an interview with TV3 Tuesday that her party will do everything to block the bill’s passage.

“The Center Party is using all kinds of methods to prevent the adoption of this act so rapidly,” said Simson.

Simson said that if all 100,000 of the country’s unemployed were put to work then the situation of funding pensions would be solved. She also promised that if Center Party were elected into the ruling majority that they would repeal the act.

The People’s Union is backing the Center Party and wants coalition to rethink the draft from the parliament as it is poorly prepared and that the government should instead focus on employment and health issues.

“The government is relying on data from 2007, which does not reflect the socioeconomic crisis nor the indicators of unemployment,” Mai Treial, deputy chairman of the People’s Union faction told the press. “It is outrageous that it is considered appropriate to raise the retirement age in a crisis.”

The coalition says the reform is a must-do considering Estonia’s demographic trends. Parliamentarian Tõnis Kõiv of the Reform Party told the press Wednesday that it is necessary to raise the retirement age so it would not be necessary to reduce pensions or raise the social tax in future.

Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica said that raising the retirement age must happen to ensure adequate care for the elderly.

“The country is obligated to ensure resources for pension payments,” Tsahkna told Baltic Reports. “It is a structural change in fiscal policy, which in the long term reduces the burden on the budget.” [/private_subscription 1 month] [private_subscription 4 months]paragraph to protest against the retirement age increase.

Finally the coalition settled on an agreement with the Center Party not to adopt the act Wednesday as was planned, but postponed the final vote until April 7.

Following the agreement, the reading finished rapidly and the third reading where it passed 54-36 with 7 abstentions.

The State Pension Insurance Act amendment draft was initiated by the government on Jan.11. The ruling coalition is seeking to equalize the pension age for men and women from 2017 by increasing it by three months per year until 2027, when the retirement age will be 65 for both sexes. Currently men retire at 63 and women at 60 and a half.

Riigikogu still deeply divided

The Center Party remains dead-set against the reform. Kadri Simson, vice chair of the Center Party said in an interview with TV3 Tuesday that her party will do everything to block the bill’s passage.

“The Center Party is using all kinds of methods to prevent the adoption of this act so rapidly,” said Simson.

Simson said that if all 100,000 of the country’s unemployed were put to work then the situation of funding pensions would be solved. She also promised that if Center Party were elected into the ruling majority that they would repeal the act.

The People’s Union is backing the Center Party and wants coalition to rethink the draft from the parliament as it is poorly prepared and that the government should instead focus on employment and health issues.

“The government is relying on data from 2007, which does not reflect the socioeconomic crisis nor the indicators of unemployment,” Mai Treial, deputy chairman of the People’s Union faction told the press. “It is outrageous that it is considered appropriate to raise the retirement age in a crisis.”

The coalition says the reform is a must-do considering Estonia’s demographic trends. Parliamentarian Tõnis Kõiv of the Reform Party told the press Wednesday that it is necessary to raise the retirement age so it would not be necessary to reduce pensions or raise the social tax in future.

Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica said that raising the retirement age must happen to ensure adequate care for the elderly.

“The country is obligated to ensure resources for pension payments,” Tsahkna told Baltic Reports. “It is a structural change in fiscal policy, which in the long term reduces the burden on the budget.” [/private_subscription 4 months] [private_subscription 1 year]paragraph to protest against the retirement age increase.

Finally the coalition settled on an agreement with the Center Party not to adopt the act Wednesday as was planned, but postponed the final vote until April 7.

Following the agreement, the reading finished rapidly and the third reading where it passed 54-36 with 7 abstentions.

The State Pension Insurance Act amendment draft was initiated by the government on Jan.11. The ruling coalition is seeking to equalize the pension age for men and women from 2017 by increasing it by three months per year until 2027, when the retirement age will be 65 for both sexes. Currently men retire at 63 and women at 60 and a half.

Riigikogu still deeply divided

The Center Party remains dead-set against the reform. Kadri Simson, vice chair of the Center Party said in an interview with TV3 Tuesday that her party will do everything to block the bill’s passage.

“The Center Party is using all kinds of methods to prevent the adoption of this act so rapidly,” said Simson.

Simson said that if all 100,000 of the country’s unemployed were put to work then the situation of funding pensions would be solved. She also promised that if Center Party were elected into the ruling majority that they would repeal the act.

The People’s Union is backing the Center Party and wants coalition to rethink the draft from the parliament as it is poorly prepared and that the government should instead focus on employment and health issues.

“The government is relying on data from 2007, which does not reflect the socioeconomic crisis nor the indicators of unemployment,” Mai Treial, deputy chairman of the People’s Union faction told the press. “It is outrageous that it is considered appropriate to raise the retirement age in a crisis.”

The coalition says the reform is a must-do considering Estonia’s demographic trends. Parliamentarian Tõnis Kõiv of the Reform Party told the press Wednesday that it is necessary to raise the retirement age so it would not be necessary to reduce pensions or raise the social tax in future.

Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica said that raising the retirement age must happen to ensure adequate care for the elderly.

“The country is obligated to ensure resources for pension payments,” Tsahkna told Baltic Reports. “It is a structural change in fiscal policy, which in the long term reduces the burden on the budget.” [/private_subscription 1 year]

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