North Macedonia pension fund faces collapse as deficit hits 1 billion euros

Jovana Trenčevska, a Member of Parliament and Vice President of SDSM, has warned that the Public Pension Insurance Fund (PIOM) is facing a potential collapse. She stated that the deficit in the pension fund has reached a historic 1 billion euros, which represents more than 14% of the total state budget.

Despite a one percent increase in pension contributions effective July 1, Trenčevska noted that the deficit continues to grow due to the redirection of funds previously allocated to the Employment Agency. Citing analyses from the Fiscal Council, she warned that the deficit could expand to 1.3 billion euros in the coming years, putting the payments for current and future pensioners at risk.

Trenčevska criticized the government led by Hristijan Mickoski, arguing that increasing contributions will place a burden on employers and likely lead to lower net salaries for workers. She further alleged that the government may attempt to access funds from the second pension pillar through fabricated investment schemes to cover the shortfall.