Universal Pension Reform: Towards a Fairer System

The viability of the universal pension system was debated during a forum organized by the Confederation of Public and Private Sector Workers (CTSP) on Tuesday, October 7, in Rose-Hill. Bernard Yen, an actuary and member of the expert committee on pension reform, once again raised the alarm. According to him, the state can no longer continue to pay Rs 15,000 to all citizens over 60 years old, without distinction.

"It has become unsustainable!" he insisted. The expert committee tasked with proposing recommendations for the reform of the pension system will begin its work by the end of the week. He advocates for the establishment of a targeting mechanism to reserve pensions for those who truly need them. "We need to find the right formula and create a fairer system. The goal is to make this model sustainable in the long term," he clarified. He also suggested that the Basic Retirement Pension (BRP) remain frozen for a transitional period while this new system is implemented.

However, the proposal does not have unanimous support. Ashvin Gudday, a negotiator for the General Workers Federation, believes that the real issue lies in economic inequalities. "We need to tax more those who can afford it, not reduce the incomes of the most modest retirees." Sociologist Sheila Bunwaree, also present, highlighted the risk of exacerbating poverty if a harsh reform is applied. "We need inclusive solutions that take social realities into account." Between budgetary urgency and the imperative of social justice, the expert committee will need to find a fair balance. One thing seems certain: the current system must evolve.