Pogea said one of the provisions included in the draft public pension law, setting that pensions will be increased in ratio with the inflation rate plus 50% of the average wage increase, is an advantage for pensioners. Currently, pensions are increased in ratio with the average wage hike.
„Inflation remains a certainty for many years to come. Retirees will be better off not having their pensions increased in ratio with the average wage, which will no longer be hiked or it will only see a slight increase in the upcoming years,” Pogea said.
Pogea stressed this is only a proposition, adding the draft pension law will be further subject to a series of amendments.
„This is a systemic law and it is important to make sure, on the long run, that the state has financial resources to pay pensions. The state budget currently subsidize the pension budget with EUR1.5 billion, because the number of contributors to the social security budget is lower than the number of pensioners. It takes one employee’s contributions to ensure funds for 1.2 pensioners,” Pogea added.
Pogea pointed out the new pension law is highly necessary to build a sustainable and fair pension system in Romania.
Prime Minister Emil Boc also took part Friday in talks at the Labor Ministry between Pogea and union leaders.
Boc said Thursday the recalculation of special pensions would translate into savings of EUR500 to 800 million annually, adding social democrats and liberals, who oppose the government’s pension law are depriving the state budget of this money.
The Parliament’s standing offices postponed for next Wednesday a decision on the government’s request for a confidence vote to enact an IMF-required pension law, which increases retirement age and eliminates special pensions, such as those of lawmakers, magistrates, military, law enforcement and intelligence services staff. The bill sets that all special pensions will be recalculated depending on people’s contributions, which means they will be reduced.