Socialists advocate re-introduction of Swiss index for pensions

Budapest, January 10 (MTI) – The opposition Socialist party has said it wants the government to calculate pension hikes according to the previously used Swiss index system, which would ensure higher increases each year.

Lajos Korozs, deputy head of parliament’s welfare committee, said that under the Swiss system the elderly would benefit from a 3.2 percent pension hike in 2017 rather than the actual 1.6 percent.

He noted that inflation was expected to reach 2.4 percent this year. The government, he said, was cheating pensioners by allowing a hike below the rate of inflation.

The Socialist lawmaker noted that although the government is obliged to reimburse pensioners for any difference between the pension increase and higher prices, this would not happen until November. “Pensioners will be lending to the government for ten months.”

On another subject, Korozs slammed the government for “completely destroying welfare services”. He said society was making huge efforts to help the needy through the current frozen spell, but “the government is doing the least”. He also noted that his party would be distributing hot meals to poor people at 24 locations in rural areas this weekend.

Source: MTI