Finland: difficult negotiations are underway over pension reforms

Whilst this coming autumn the Finnish parliament will debate a proposal for reforms of the pension system that are to be put into place in 2017, negotiations are getting tough and decisions may take longer than hoped for, and this against a backdrop of an economy going through its third recessionary wave in six years combined with a growing public deficit.
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Negotiations acceptable by all. The previous major pension system reform was led in 2005 and included significant changes so that only minor additional adjustments were expected to have been needed.Since the major reform, retirement payments are calculated over the whole of a worker’s career and not just the most recent years. A life expectancy co-efficient was also introduced into the calculations and pre-retirement schemes were done away with or greatly reduced. Retirement age was extended to

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