Pension reform passes

The divisive measure will gradually raise Estonia's pension to 65 starting in 2017.

The divisive measure will gradually raise Estonia's pension to 65 starting in 2017.

TALLINN — With workers picketing outside, the State Pension Insurance Act was passed 50-40 by the Riigikogu Wednesday afternoon.

The government initiated the State Pension Insurance Act amendment draft on Jan. 11 asserting that raising the retirement age is a solution to Estonia’s demographic problem of an aging population and in the long term will reduce the pension system’s burden on the budget. 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 [private_supervisor]2027. Currently men retire at 63 and women at 60 and a half.

The second reading two weeks ago was attempted to be blocked as the Center Party asked for a 10-minute coffee break after voting on each paragraph to protest against the retirement age increase. However, Center did not show any resistance today, although all of the party’s faction members voted against the bill along with the Social Democrats and the People’s Union of Estonia. The Greens surprisingly voted for the draft.

“The mood at the parliament was calm, as probably everybody understood that accepting such bill was necessary,” Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica told Baltic Reports. “We made this decision for the future. The situation is inevitable, there are not enough working people, but somebody has to pay the pensions.”

However, Kadri Simson, vice chair of the Center Party said the act is not in accordance with Estonians’ lifetime and health indicators.

“According to Eurostat numbers the lifetime of Estonian is the lowest in Europe,” Simson told Baltic Reports. “The pension is not a gift from the state, but is earned by the people who pay taxes.”

Indeed, Estonians may end up literally working themselves to death under a new government proposal to increase the retirement age to 65, exceeding the life expectancy of men by five years.

Union strikes

Around 200 members of the Union of Estonian Railroad Workers gathered in front of the Parliament building Wednesday to strike against raising the retirement age. The union members gathered around 1:30 p.m. before the Parliament meeting started.

Oleg Tšubarov, union chairman said the union members went out to picket because they find the act unacceptable. The union gathered 8,000 signatures which were given to the social commission of the parliament.

“The politicians do not know or care about what is going on in the worker’s life,” Tšubarov told Baltic Reports. “In this situation the dialog happened too late when we were not not able to make our views clear,” said Tšubarov.

While this is one of the larger anti-government protests Estonia has seen in the past year, its attendance was meek compared to the large protests against government austerity measures neighboring Latvia and Lithuania have seen. [/private_supervisor] [private_subscription 1 month]2027. Currently men retire at 63 and women at 60 and a half.

The second reading two weeks ago was attempted to be blocked as the Center Party asked for a 10-minute coffee break after voting on each paragraph to protest against the retirement age increase. However, Center did not show any resistance today, although all of the party’s faction members voted against the bill along with the Social Democrats and the People’s Union of Estonia. The Greens surprisingly voted for the draft.

“The mood at the parliament was calm, as probably everybody understood that accepting such bill was necessary,” Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica told Baltic Reports. “We made this decision for the future. The situation is inevitable, there are not enough working people, but somebody has to pay the pensions.”

However, Kadri Simson, vice chair of the Center Party said the act is not in accordance with Estonians’ lifetime and health indicators.

“According to Eurostat numbers the lifetime of Estonian is the lowest in Europe,” Simson told Baltic Reports. “The pension is not a gift from the state, but is earned by the people who pay taxes.”

Indeed, Estonians may end up literally working themselves to death under a new government proposal to increase the retirement age to 65, exceeding the life expectancy of men by five years.

Union strikes

Around 200 members of the Union of Estonian Railroad Workers gathered in front of the Parliament building Wednesday to strike against raising the retirement age. The union members gathered around 1:30 p.m. before the Parliament meeting started.

Oleg Tšubarov, union chairman said the union members went out to picket because they find the act unacceptable. The union gathered 8,000 signatures which were given to the social commission of the parliament.

“The politicians do not know or care about what is going on in the worker’s life,” Tšubarov told Baltic Reports. “In this situation the dialog happened too late when we were not not able to make our views clear,” said Tšubarov.

While this is one of the larger anti-government protests Estonia has seen in the past year, its attendance was meek compared to the large protests against government austerity measures neighboring Latvia and Lithuania have seen. [/private_subscription 1 month] [private_subscription 4 months]2027. Currently men retire at 63 and women at 60 and a half.

The second reading two weeks ago was attempted to be blocked as the Center Party asked for a 10-minute coffee break after voting on each paragraph to protest against the retirement age increase. However, Center did not show any resistance today, although all of the party’s faction members voted against the bill along with the Social Democrats and the People’s Union of Estonia. The Greens surprisingly voted for the draft.

“The mood at the parliament was calm, as probably everybody understood that accepting such bill was necessary,” Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica told Baltic Reports. “We made this decision for the future. The situation is inevitable, there are not enough working people, but somebody has to pay the pensions.”

However, Kadri Simson, vice chair of the Center Party said the act is not in accordance with Estonians’ lifetime and health indicators.

“According to Eurostat numbers the lifetime of Estonian is the lowest in Europe,” Simson told Baltic Reports. “The pension is not a gift from the state, but is earned by the people who pay taxes.”

Indeed, Estonians may end up literally working themselves to death under a new government proposal to increase the retirement age to 65, exceeding the life expectancy of men by five years.

Union strikes

Around 200 members of the Union of Estonian Railroad Workers gathered in front of the Parliament building Wednesday to strike against raising the retirement age. The union members gathered around 1:30 p.m. before the Parliament meeting started.

Oleg Tšubarov, union chairman said the union members went out to picket because they find the act unacceptable. The union gathered 8,000 signatures which were given to the social commission of the parliament.

“The politicians do not know or care about what is going on in the worker’s life,” Tšubarov told Baltic Reports. “In this situation the dialog happened too late when we were not not able to make our views clear,” said Tšubarov.

While this is one of the larger anti-government protests Estonia has seen in the past year, its attendance was meek compared to the large protests against government austerity measures neighboring Latvia and Lithuania have seen. [/private_subscription 4 months] [private_subscription 1 year]2027. Currently men retire at 63 and women at 60 and a half.

The second reading two weeks ago was attempted to be blocked as the Center Party asked for a 10-minute coffee break after voting on each paragraph to protest against the retirement age increase. However, Center did not show any resistance today, although all of the party’s faction members voted against the bill along with the Social Democrats and the People’s Union of Estonia. The Greens surprisingly voted for the draft.

“The mood at the parliament was calm, as probably everybody understood that accepting such bill was necessary,” Parliamentarian Margus Tsahkna of the Union of Pro Patria and Res Publica told Baltic Reports. “We made this decision for the future. The situation is inevitable, there are not enough working people, but somebody has to pay the pensions.”

However, Kadri Simson, vice chair of the Center Party said the act is not in accordance with Estonians’ lifetime and health indicators.

“According to Eurostat numbers the lifetime of Estonian is the lowest in Europe,” Simson told Baltic Reports. “The pension is not a gift from the state, but is earned by the people who pay taxes.”

Indeed, Estonians may end up literally working themselves to death under a new government proposal to increase the retirement age to 65, exceeding the life expectancy of men by five years.

Union strikes

Around 200 members of the Union of Estonian Railroad Workers gathered in front of the Parliament building Wednesday to strike against raising the retirement age. The union members gathered around 1:30 p.m. before the Parliament meeting started.

Oleg Tšubarov, union chairman said the union members went out to picket because they find the act unacceptable. The union gathered 8,000 signatures which were given to the social commission of the parliament.

“The politicians do not know or care about what is going on in the worker’s life,” Tšubarov told Baltic Reports. “In this situation the dialog happened too late when we were not not able to make our views clear,” said Tšubarov.

While this is one of the larger anti-government protests Estonia has seen in the past year, its attendance was meek compared to the large protests against government austerity measures neighboring Latvia and Lithuania have seen. [/private_subscription 1 year]

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