APRIL 7 2014 (The Conway Bulletin) — Under gentle pressure from the World Bank, a key donor, Kyrgyzstan plans to increase the retirement age for women by two years to 60-years-old.
The idea is to both equalise the retirement age of men and women and generate revenue for the state pension plan.
But reforming Soviet-era pension plans is an emotive issue. In neighbouring Kazakhstan, a similar plan last year triggered protests and the resignation of a government minister.
Kyrgyzstan currently has a young population but with a grey economy worth 40% of GDP, payments into the government’s pension pot and other forms of social assistance are miserly.
This needs to change to support a society where life expectancies are increasing, although people in sight of retirement are unlikely to be thinking fiscally.
Varya Zirilenko, 53, said her hands ached from the repetition of sorting potatoes at the processing plant in the northern city of Tokmok where she works.
“When I come home at night they shake. Is that normal? Must I go on like this for another seven years before I can receive a full pension?” Varya expects her monthly pension to be over 6,500 Kyrgyz soms ($120). Many are even smaller.
Perhaps, though, the retirement age is just one of the issues surrounding Kyrgyzstan’s pension scheme. Another is corruption, endemic throughout the country.
Akhmatbek Keldibekov, an opposition politician from the country’s south is currently on trial for corruption. The charges relate to his time as head of the Social Fund under former president Kurmanbek Bakiyev.
ENDS
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(News report from Issue No. 179, published on April 9 2014)