MAN-PIN is pleased that the government and the Minister of SOAW, Mrs. America-Francisca, responsible for old-age pensions (AOV), have finally recognized the legal right to indexation and the outstanding payments owed to pensioners.
On Tuesday, November 4, 2024, the government will meet with the pensioners’ organizations to discuss various scenarios regarding the payment of the indexation and the arrears.
The MAN-PIN faction is open to supporting any viable solution that ensures payment of the indexation and existing debts owed to pensioners.
For us, the interests of pensioners rise above political color or party interests.
Therefore, to enable the prompt start of the 2026 indexation payments, MAN-PIN, taking into account the 2026 budget and various financial recommendations, proposes the following measures:
1. Accelerate the legal framework required for implementing the tourist tax, similar to the process followed with the LOK in December 2024.
2. Proceed with the legalization of undocumented residents, who, once legalized, will contribute to the AOV fund and to general taxation.
3. Introduce a surcharge on money transfers sent abroad.
4. Accelerate the allocation of 5% of LOK revenues, as previously promised.
5. Use part of the ‘unforeseen expenditures’ budget, which totals millions, to finance the indexation payments.
6. Allocate funds listed as ‘undistributed destinations’ in the national budget to partially pay off debts owed to pensioners for indexation.
7. Utilize part of the 80-million-florin reserve at the CBCS to pay the indexation, similar to the precedent set in the Ennia pension case, where Central Bank dividends were used by the government.
8. Reduce the extra funds managed by SOAB, specifically lowering its budget from 22.5 million to 7 million florins.
If the government implements these proposals, over 100 million florins per year would be freed up — sufficient to pay for the indexation and still have funds left to address the outstanding debts.
It is important to note that paying the indexation and arrears will result in increased local spending, which will stimulate the economy and generate additional revenue for the government.
These additional revenues could also help strengthen the AOV fund structurally, for example, through investments that yield returns to support future AOV adjustments.
As stated to the Minister of SOAW in Parliament, she can count on the cooperation of the MAN-PIN faction in defense of the rights and interests of AOV pensioners.
Press release: MAN-PIN