The Bank of Albania has reiterated its call for a comprehensive review of the country’s pension system, emphasizing the need for a long-term approach that ensures sustainability and opens pathways for supplementary schemes.
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| Bank of Albania |
During discussions in the Parliamentary Committee on Economy, Deputy Governor of the Bank of Albania, Luljeta Minxhozi, stressed that any reform must address the demographic structure of the population while minimizing fiscal pressure.
“In our view, revising the parameters of the pension scheme should guarantee long-term sustainability with minimal impact on the budget. Furthermore, we suggest that the first review of the mandatory contribution scheme be accompanied by additional measures to develop the second and third pillars of the pension system,” Minxhozi stated.
Tackling Informality in Wages
Another key issue raised by the central bank is the persistent informality in wage reporting, which poses a challenge to designing a fair and effective pension system.
“There is a high degree of informality in wage declarations. Before exploring new parameters for the pension system, it is crucial to understand the full extent of this informality. This will help ensure that the new scheme’s parameters are not skewed,” said Erald Themeli, Director of Monetary Policy at the Bank of Albania.
Government Initiatives and Promises
The government has announced upcoming legal changes to the pension system, including a commitment to a significant increase in pension benefits starting next year. These efforts aim to address growing public concern over the adequacy and sustainability of pensions.
The Bank of Albania's recommendations underscore the importance of a balanced reform that not only strengthens the existing system but also encourages private and supplementary pension schemes to provide greater security for the aging population.