The new pensions law

The new pensions law in the public sector in Romania has been adopted by the Chamber of Deputies, the decision-making body in this case.

Corina Cristea, 27.06.2019, 12:42

The Chamber of Deputies has adopted
the new pensions law in the public sector in a re-examined version after being
declared partly unconstitutional by the Constitutional Court of Romania. The bill,
which has come under criticism from the opposition, which sees it as an
election move, provides for a gradual increase in the pension point starting on
the 1st of September, from the equivalent in lei of some 265 euros
to 395 euros in 2021. Beginning in 2022, the value of the reference point will
be indexed annually in keeping with the inflation rate and 50% of the real
increase in the average gross income made, the bill also stipulates. The value
of the minimum pension is calculated in relation to the minimum gross salary in
the respective year.

Persons with seniority of minimum 15
years are to receive 45% of the minimum gross salary, with 1% being added for
each additional year of employment. Persons with seniority of 10 to 15 years
receive 40% of the minimum gross salary, again with 1% being added to their
pension for each additional year of employment. The new pensions law also takes
into account all salary-related rights that have been subject to taxation, such
as indexations, global agreement, the 13th salary, extra time,
bonuses, prizes and other types of bonuses. If a lower pension results after
recalculation based on the new criteria, the initial pension is retained, plus
10%. Four types of pensions are stipulated by the new law: old-age pension, early
retirement pension, invalidity pension and survivor pension.

The representatives of the ruling
coalition formed by the Social Democratic Party and the Alliance of Liberals
and Democrats say the new law creates order in the system and give assurances
that no pension will be lower after the enforcement of the new law and that the
standard retirement age will be maintained. The former labour minister and one
of the initiators of the bill, the Social Democrat MP Lia Olguta Vasilescu,
explains:

This law increases pensions, it
doesn’t make pensioners poorer. I’ve seen that some have tried to delay this
law, but it’s very important to channel some of the increase in the state
budget revenues to the population.

The opposition says, however, that
the new law will not eliminate the inequality in the system. Dan Valceanu, an
MP from the main opposition party, the National Liberal Party:

You said the law will benefit all
pensioners, and that all of them will receive higher pensions. On the contrary,
this law makes those who worked in difficult conditions receive an even lower
pension and are punished by this new law, and those who have also worked hard
are equally disadvantaged by this law and do not receive a bigger pension.

The critics of the new pension law
believe it is an election move.