This bill supersedes and therefore replaces the Pension clause contained within the Social, Educational, Welfare and Working Reform of 519AER
The Pension Reform Act of 551AER[]
”For years Falleentium has existed on an outdated and archaic pension system, which fails to denote anyone’s individual achievements and service to the nation. This outdated system gives anyone whom has lived in the nation for 3 years immediate access to lifetime support immediately. The basic rate has also failed to be adjusted to take into account the greatly expanded social welfare provision. This bill aims to overhaul this system by making it a more rewarding system for long term pensioners and for our brave servicemen. It also aims to allow people to build a bigger pension pot by ensuring that both workers and employers make a contribution to their pension. I urge all Deputies to vote for this long needed social welfare reform.” - Anthony Blair, PLP Spokesperson for Welfare Reform.
I. The pension, consisting of basic and pension supplements, is non-taxable. The basic rate is universal and available to all citizens of the Empire. The basic rate is 13,500 Fall a year and pension supplements vary anywhere from 3,000 to 6,000 Fall.
II. Anyone who has served within the Military for a period of time longer than 1 year, and has saw active service, qualifies for a Military pension. This is to be paid at a rate of 16,000 Fall a year.
III. Individuals are obligated to contribute to their pension fund at a rate of 2% of their gross-annual pay. They can contribute up to 7% should they wish but any contribution up to 4% is to be matched by their employer. This will be accrued and managed by the Interior Ministry in co-operation with the Falleen Treasury and will be dubbed the “Pension top up”.
III-a. Any savings made via this scheme will be paid out at a rate decided by the citizen, with free financial advise to be offered by the Government on this topic.
III-b. Citizens are able to liquidate their “top up” fund and withdraw the full amount if they should wish. This will not disqualify them from the basic rate of pension.
IV. To qualify for a pension the person must have Falleen Citizenship and be a permanent resident of Falleentium. They also must have resided in Falleentium at least 6 years between the ages of 18 and 62 year.
V. The general retirement age for the Empire is 62 for Men and 60 for Women.
VI. Early retirement pension can be applied to persons who for whatever reason cannot permanently maintain a paying job. Early retirement pension are paid to people aged 21 to 62 years, either due to medical or social reasons. In order to receive the grant of health-related early pension, a medical official must declare the person unable to work in any meaningful capacity.
Summary:[]
The PLP estimate this reform will;[]
- - Add 11.5 Billion Fall to the Social Expenses budget over the next 10 years.
- - The actual financial impact of this bill is estimated to be 7.1 Billion as it is to be part financed by the expansion of the period of time needed to have resided in the nation to claim the basic pension rate and by the “top up” fund easing the Social Welfare requirements of pensioners.
- - The ability to liquidate the top up fund will grant pensioners the ability to purchase a property to reside in and will ease the Social Housing situation within the more populous States.