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CHANGES IN THE PENSION SYSTEM IN ROMANIA 14/04/2010 |
(2010-04-14) |
Last updated: 2010-04-15 13:53 EET |
The government said that the new bill cleans up the system, and that reforms can no longer be put off, because the pension fund is depleted. According to Labor Minister Mihail Seitan, in 2009 pension payments accounted for as much as 8% of the GDP. The bill’s main provisions are gradually making men’s and women’s retirement age the same, 65, by 2030, adjusting pensions for inflation, and tougher conditions for granting disability pensions. Starting in 2011, employees in the army, police, and special services will be paying higher social security contributions.
The pensions of some categories of state employees - soldiers, police, magistrates, diplomats, pilots - who now have special retirement benefits, will be reduced, which has them rather upset at the moment. The Labor Minister also said that, after recalculation, small military pensions will go up, and only pensions over 7000 lei (around 1,700 Euro) will be reduced. To dampen the effects, the Defense Committee passed a number of amendments. The most important of them raises the pension reference value for military, public order, and national security personnel. The head of the committee, Liberal Teodor Melescanu, explained:
“The most important is the amendment that provides a gradual approach to pensions in this sector until 2025; in this period of time, people working in defense, public order and national security should have an annual raise of pension points, 50% the first year, going down to 8% by 2025, so that the negative impact of diminishing pensions, as evaluated by the Defense Ministry, would be lessened by granting these supplementary points”.
Senators in the Senate’s Committee on Judicial Affairs also passed several amendments. One of them is that judges and prosecutors can retire at the age of 60. This pension would be 80% of their monthly gross salary, including the bonuses in their last month of work.
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