Three months after being drafted by the
\nLabor Ministry, a law bringing several changes to the pension system in Romania
\nis expected to be adopted this week by the Government. The new law will not
\nincrease the retirement age, although people will be allowed to work until 70
\nyears of age, should they opt to do so. They will continue to pay social security
\ncontributions and will request a recalculation of pensions when they decide to
\nretire. The law also bans the aggregation of pensions and state-paid salaries.
\nApproximately 35,000 people who are currently benefiting from both will have 30
\ndays since the law takes effect to choose one of the two forms of revenue.
\nThere are, however, certain categories exempted from this rule: teachers,
\nartists, members of the Romanian Academy and MPs, as well as pensioners with
\ndisabilities, maternity and home nurses. The bill, which the Government will
\nsubmit to Parliament for debate and approval, comes amidst growing concerns over
\nthe imminent collapse of the pension system. Labor Minister Raluca Turcan
\nexplains.<\/p>\n
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\n
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Right now, we have a 16-billion deficit in
\nthe social security budget. By 2030 an additional 1.8 million people will be
\nretiring on top of normal figures, as a result of the baby boom of 1966-1969.
\nAs a result, pressure on the public pension system is mounting. Moreover, it is
\nalready facing harsh inequities. The ratio between the lowest and highest
\npensions is 1%. Thousands of pensions win litigations against the Romanian
\nstate and we have an obligation to increase contributions to the pension system,
\ncurb inequities and make the system more sustainable and predictable, instead
\nof serving the interests of decision-makers who increase pensions ahead of
\nelections. We also need to digitize the pension database, so that by 2022
\nRomania should have 5 million digitizes pension records. <\/p>\n
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\n
<\/p>\n
The current legislation has allowed for a
\n14% increase in the pension system, operated last year, Minister Turcan went on
\nto say. Pensions will also increase in 2022 in line with the inflation rate, whereas
\nby the end of the next year a new pension law will be adopted, the Romanian
\nofficial also pointed out. (VP)<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The Government this week is due to adopt a law modifying the pension system in Romania<\/p>\n","protected":false},"author":108,"featured_media":88627,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[40278,39755,40277],"coauthors":[],"class_list":["post-89188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-labor-minister-raluca-turcan","tag-pension-system","tag-retirement-age"],"acf":[],"yoast_head":"\n