Pension fund shortfall reaches €1 billion — opposition warns payments at risk, ruling party says fund is stable
SDSM warns pension payments are endangered by a €1 billion gap; VMRO-DPMNE calls the fund stable and points to recent 7,000‑denar increases.
The shortfall in North Macedonia's Pension and Disability Insurance Fund (PIOM) has risen to €1 billion, prompting sharp accusations between the main political parties over the fund's sustainability and the safety of pension payments.
Opposition SDSM says the gap puts pension disbursements at risk and blames the ruling party's policies for pushing the fund toward insolvency.
"The situation is alarming, Mickoski increased the Fund's hole to €1 billion. These are huge sums, over 14% of the entire budget. Pension payments are at risk. PIOM can no longer be filled from contributions, the criminal gang brought it to unsustainability. VMRO-OKG and Mickoski have a plan only how to steal money from citizens, everything else they destroy," said Jovana Trenchevska of SDSM.
Government rejects alarm, points to recent pension increases
The ruling VMRO-DPMNE rejects the opposition's characterisation and says transfers from the state budget to pension funds are common across Europe. The party also highlighted recent pension increases as proof the system is functioning.
"Regarding the hysteria and panic that SDSM and Trenchevska are creating that pension receipt is in question, we have bad news for them and good news for citizens: absolutely the pension fund is stable, and SDSM and Trenchevska are upset that today pensioners receive a 7000 denar increase, while in their time the same was 180 denars. Additionally, pensions will be deposited into pensioners' accounts every first of the month," responded VMRO-DPMNE.
Analysts and officials note the shortfall is a long-running problem. Because contributions do not cover obligations, each year more than one third of pension payments are financed from the state budget. Last year nearly €900 million were transferred from the budget; this year authorities plan to transfer €1 billion to cover the gap.
Current labour and pension statistics show roughly 572,000 employed people and over 350,000 pensioners — about one pensioner for every 1.63 workers. The fund's deficit ratio was about 43% in 2016–2017, fell to 33% by 2023, and rose again above 41% after recent pension increases — two raises of 2,500 denars and two of 1,000 denars — which together amount to a 7,000 denar rise in under two years.
Photo: press material from the event
