The Retirees ('Retraités) section of the LCGB trade union has warned that the reform to Luxembourg's pension system expected later this year could see the low purchasing power of pensioners further exacerbated.

LCGB-Retirees claimed on Thursday that several manipulations to the pension adjusment mechanism incurred over the last several years have resulted in an uncompensated loss of purchasing power for those in retirement. The group pointed to the adjustment of 1.5% due on 1 January 2013 which was not applied and the freezing of the adjustment system which marked 2014 and 2015.

LCGB-Retirees stated that they did not accept further degradation to the pension insurance system given the healthy financial situation of pension insurance, and called for a series of measures in favour of pensioners. The group further requested that the government commit to the full maintenance of the pension adjustment mechanism so long as the overall contribution was not increased.

In addition, LCGB-Retirees demanded that the government provide compensation for the loss of purchasing power which it claimed arose from government decisions. The group stated that the 0.5% increase in pensions at the beginning of the year could not and would not compensate for the 2% rise of VAT applied in 2015 negatively impacting on individuals in elderly care centres.

 

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