Tunisia considers higher retirement age
2010-09-07
Tunisia has a plan to fix its social security deficit, but workers may not like the remedy.
By Jamel Arfaoui for Magharebia in Tunis – 07/09/10
 [Fethi Belaid/AFP/Getty Images] Tunisia's social security shortfall may require elderly citizens to work longer. |
Right after Eid, the Tunisian government, civil society groups and employers will begin negotiations aimed at protecting the financial stability of the country's two social security funds.
In order to fix the funds' current deficit, however, Tunisia may require its citizens to work for several more years and make a larger personal contribution.
"The information we have on the aggravated deficit in the two social security funds has triggered us to think clearly about salvaging social security in our country," said MP Adel Chaouch. "I think extending the age of retirement is the right solution for everyone."
The government suggests that the age of retirement be raised from 60 to 62 by 2012. Between 2016 and 2020, the retirement age would go up to 65.
"Facing the deficit that has accumulated over the years, social security funds have no choice but to reconsider their options so as to save social harmony," social security analyst Fethi Ayari told Magharebia. "The deficit that amounts to 141 billion dinars will force both funds to use their reserves, which will barely last until 2014," he added.
Increasing the contribution percentage would be implemented over three years. The 5% increase to the National Retirement and Social Welfare Fund (CNRPS) would be divided into 3% paid by the state and 2% by the public sector worker. The 3% increase of the National Social Security Fund (CNSS) would be divided into 1.8% covered by the employer and 1.2% by the private sector worker.
"The collapse of those two funds will cause many workers and their employers to lose social coverage, which provides them with the cost of medication and compensations in cases of disease or occupational accidents," Ayari said.
"But extending the age of retirement and upping the rates of employers' and workers' contributions do not solve the problem," Ayari explained, "Other sources of funding must be found. The government, for instance, must commit to contributing in the two funds, and must levy a consumption tax that would be entirely dedicated to social security."
Sofiene Ben Farhat, political analyst for state-owned La Presse, advocates raising the retirement age but not workers' contributions.
"We have to be aware that the average life expectancy in Tunisia will reach 78 years by 2025, and will be coupled with an increased number of unemployed young people. That will cause a breach in the balance of social funds; fewer contributors versus a longer lifetime for retirees," Farhat said.
On the other hand, Mokhtar Ben Ahmed, a syndicate worker who will soon retire, warned that increasing workers' and employers' contributions would make things worse.
"Small-scale institutions are already suffering because of the global financial crisis. Also, the purchase power among most Tunisians is faltering. As such, any extra burden will only do harm to both," Ben Ahmed said.
Mejda Ben Fradj, an employee in her fifties, demanded that authorities "reconsider criteria for extending the age of retirement, because relying on the increased life expectancy alone is insufficient".
"Life expectancy can vary from one occupation to another," Ben Fradj said. "I don't think that employees' life expectancy is going to be higher than that of doctors or university professors."
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Anonymous Posted 3 days ago
I found the above article negative. I think that income earners will appreciate it if they are made to work until age 62 instead of 60. Tunisia is not France, where a similar decision from Sarkozy pushed more than 2 million income earners to protest in the streets. The Tunisians like Ben Ali’s and his wife’s positive initiatives. The state newspaper La Press is here to remind us of this. In its 6 September issue, the newspaper announced an important social initiative from Ben Ali: he plans to organise a circumcision ceremony for 1000 children, all of whom are sons of agents at the Defence Ministry, at the Military Hospital of Tunis. The army is thus remaining loyal to its supreme commander. According to La Presse: “While presiding over this ceremony, National Defence Minister Ridha Ghira observed that the event is likely to strengthen the bonds of mutual support among the members of the National Defence’s extended family and to add further to the value of solidarity in Tunisian society, under the leadership of President Zine El Abidine Ben Ali.” A bit further down the same newspaper reported that another act of solidarity was held on the same day with the circumcision of 250 other children. “This ceremony offered the offered an opportunity to pay homage to Miss Leila Ben Ali, the wife of the President of the Republic, for her laudable initiatives for solidarity and for her noble humanitarian actions.” Magharebia, forget about the income earners, the retirees and the social security deficit. Ask your correspondent to report the fate of the 1,250 foreskins cut off that day. Have they kept them as trophies for the generations to come?
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