Four different formulas are being worked on to reorganize the lowest pension application, which concerns millions of retirees. Options include linking the increases made every six months in the current system to certain economic indicators, providing support to low-income retirees, and changing the base salary calculation.
The study aims to make pensions more predictable and to improve the income of retirees receiving low pensions.
THE LOWEST PENSION MAY BE LINKED TO THE MINIMUM WAGE
According to a report in the pro-government newspaper Yeni Şafak, the first formula being evaluated involves indexing the lowest pension to the minimum wage or another economic indicator.
If this option is implemented, the base pension could be increased according to a formula to be determined in the law, without the need to pass a new law every six months.
However, what percentage of the minimum wage will be taken as a basis and the cost the application will bring to the budget have not yet been clarified.
DIFFERENCE SUPPORT MAY BE PROVIDED TO LOW-INCOME RETIREES
In the second formula, it is envisaged to provide support to retirees who fall below a certain income level instead of increasing the lowest pension in general.
Within the scope of this model, payments could be made to retirees who fall below the determined income limit for the difference. If the application is expanded, the household income and social support needs of retirees could also be taken into consideration.
In addition, it is planned to keep the pension earned in return for premium payments and income support in the nature of social assistance separate from each other.
THE BASE SALARY CALCULATION SYSTEM MAY CHANGE
The third option on the agenda covers the restructuring of the base salary system used in the calculation of pensions.
Reviewing the current calculation method is being evaluated, especially to improve the situation of retirees who cannot fully reflect the raises to their pensions because their base salary is low.
In this context, the effects of the number of premium days, earnings subject to premiums, and pension accrual rates on the salary could be reconsidered. Possible changes could cover not only current retirees but also employees who will retire in the coming years.
BUDGET BALANCES MAY BE TAKEN AS A BASIS FOR SALARY INCREASES
In the fourth formula, it is envisaged that economic conditions and budget possibilities will be taken into account when determining the increases in the lowest pension.
In this option, instead of directly linking base pension increases to the inflation rate, economic indicators and the current state of public finance could be taken as a basis.
Providing a certain minimum increase guarantee to reduce uncertainty in the income of retirees is also among the topics being evaluated.
A LEGAL AMENDMENT WILL BE REQUIRED FOR THE REGULATION
It has not yet been finalized which of the four options will be implemented. If the current system is changed, it will be necessary to make a regulation in the Social Insurance and General Health Insurance Law No. 5510.
Within the scope of the legal amendment, the method of determining the base pension, increase periods, and financing principles could be reorganized. If the base salary calculation system is changed, a more comprehensive legislative study will be required.
The scope of the regulation, how many retirees it will affect, the cost it will bring to the budget, and how the rights of current retirees will be protected will also be addressed in the decision-making process.
IŞIKHAN HAD POINTED TO ERDOĞAN
Minister of Labor and Social Security Vedat Işıkhan had previously pointed to President Recep Tayyip Erdoğan for the announcement to be made regarding retirees.
While the options for the regulation regarding pensions have come to the agenda again following Işıkhan's statement, no official decision has been announced yet regarding which of the four formulas will be preferred.
News Source: 12punto
