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In return, the salary rises up to 42,000 euros a year

Last May, Denmark agreed extend retirement age ordinary up to a minimum of 70 years due to the increase in the life expectancy of the population. At the same time, the politicians who approved that measure enjoyed a life pension for the simple fact of having occupied a seat in folketing (Danish Parliament) for at least one year.

The difference in criteria was so overwhelming, that Danish politicians have had no more alternative to cut their own privileges and eliminate that regulation.

Golden Retirement for politicians. To date, the Danish legislation established that, with a single year of public work as a parliamentarian, the politician acquired the right to collect a life pension of some 35,000 monthly crowns. That is equivalent to about 4,692 euros per month until the end of their days.

Unlike the rest of the population that before the reform could be withdrawn at age 67, the Danish parliamentarians were allowed retire at 60 years. Taking into account that According to dataFrom the OECD, the life expectancy of Denmark is 82 years on average, leads Danish politicians to charge a generous pension for about 22 years. Everything, for a single year of public service.

Reforms for the one who comes behind. After the reform applied in the law that regulates the Viability of the pension systemeight parliamentary groups have agreed to sign a great pact with which these life pensions are revoked with 81 votes in favor and 21 against. The measure carried above the table Since 2016.

However, politicians have decided that the measure will apply for the first time to the politicians who are chosen from the next elections, so future parliamentarians will adopt the “Almindelig Arbejdsmarkedspension” (normal labor market pension). Those who have already acquired that right providing their service in this legislature maintain their life pension, so the absolute purpose of the measure will not be achieved until 2090.

“Our agreement makes the whole system much more understandable to citizens and, therefore, also guarantees greater acceptance,” He affirmed the leader of the parliamentary group Leif Lahn.

More cuts … In addition to the cuts planned in the life retirement of the parliamentarians, the agreement also contemplates reduce the “compensation for dismissal“That those politicians who are not re -elected receive.

Currently, deputies receive their full salary for two years after the end of their parliamentary work, while ministers and senior government charges receive three years of salary at the end of their legislature. With the new measure, this compensation is trimmed at one year of salary for all.

According to They published Danish media, it is estimated that, with this agreement, the Danish coffers will save 20% in the expenses allocated to the members of folketing and the government team. Which is about 4.02 million euros.

… and more increases. The change puts an end to the “golden” pension system and the Danish parliamentarians will be governed by the same labor regulations as the rest of the country’s workers, and will contribute 18.07% of their salary to the state pension fund, and will receive that same percentage of their salary for pension.

However, such and As they point out from Dr. The cut in parliamentary pensions brings a large asterisk: politicians will receive a salary increase in return. Thus, future deputies will receive 948,000 crowns per year (about 127,090 euros) to 1,080,000 crowns (about 144,780 euros to change). A general increase of almost 18,000 a year.

Salary increase for the Government. The salary increase will also affect the highest levels of the government. For the ministers, the rise will go from the 1,702,000 crowns per year (228,150 euros per year) currently charged by the Prime Minister, to 2,016,000 crowns (270,241 euros) that will charge in the following legislature.

That is, an annual increase of 42,000 euros. For the positions of greater responsibility in the government, the salary will go from 1,920,000 crowns (257,386 euros) to 2,481,000 crowns (332,591 euros per year).

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Image | Unspash (Hannah Thiel), Flickr (News Oresund)

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