Optimising the Adjustment Mechanism for Social Security Benefits – Enhancing Responsiveness and Securing Consensus from the Standing Committee for the Coordination of Social Affairs

Optimisation Proposal for the Periodic Adjustment Mechanism for Social Security Benefits – Infographic

On 21 July, the Social Security Fund presented its proposal to optimise the Periodic Adjustment Mechanism for Social Security Benefits (hereinafter referred to as the “Adjustment Mechanism”) during the plenary session of the Standing Committee for the Coordination of Social Affairs. The proposal was unanimously endorsed by representatives of both employers and employees. The measures include lowering the activation threshold of the Adjustment Mechanism (the cumulative change in the Composite Consumer Price Index) to 2% and establishing a flexible procedure to ensure that old-age pension adjustments occur at intervals of no more than 3 years. The Social Security Fund believes that these optimisations will enhance the mechanism’s responsiveness to price fluctuations, thereby ensuring that adjustments to old-age pension and other benefits are more closely aligned with the needs of the population.
…