LSDM: Lack of funds in the budget puts pensions and the second pension pillar at risk

LSDM has accused the government led by Hristijan Mickoski of deliberately and continuously damaging the pension system in North Macedonia, while warning that the lack of financing is threatening both the payment of pensions and the functioning of the second pension pillar.

In a statement to the media, Renata Mladenovska, a member of LSDM’s Executive Council, said that the shortfall in the Pension and Disability Insurance Fund (PIOM) has reached 40 percent. According to her, the future of the second pension pillar has also been cast into doubt.

She also referred to a statement by Governor Trajko Slaveski, who said that up to 80 percent of citizens who will retire in the 2030–2032 period will not be able to secure even the minimum pension.

According to the opposition, the government is preparing to weaken or abolish the second pension pillar by returning workers’ contributions from private funds to the state PIOM fund. LSDM claims that such a measure would leave future pensioners dependent solely on the state budget, which, it says, is already in serious financial condition.

Mladenovska also accused the executive of increasing public debt by 2.5 billion euros in just two years and said that the budget deficit projected for the entire year had already been spent in its first half.

According to LSDM’s assessment, the main reason for this situation is, as she said, corrupt party tenders. She added that funds that should have gone to pensions, healthcare, education and wages are ending up with people close to those in power.

The opposition believes that the government’s policies are endangering not only the pensions of current retirees, but also the financial security of future generations.