Romanian PM: High Pensions Will Still Be Paid Depending On People’ Contributions

„The Government already eliminated luxury salaries and the new public pension law will solve the problem of special pensions. (…) Pensions that are not based on contributions to the social security budget will be recalculated. However, people who did contribute to the social security budget will still receive high pensions,” said Boc, adding special pensions rising to 80% of the beneficiary’s last salary will also be reduced.

He also stressed the enforcement of the new pension law will not affect minimum social pensions of 350 lei (EUR1=RON4.2776), which, he said, will increase in ratio with the country’s economic growth. He also pointed the current pension system seriously affects the payment of pensions for people who did contribute to the social security budget.

Boc recently said nearly EUR1.5 billion are currently taken from the state budget to fill the gap in the social security budget and pay pensions.

Boc on Tuesday said the government will seek a confidence vote in Parliament to enact and IMF-required pension law which will increase retirement age and eliminate special pensions, such as those of lawmakers, magistrates, military, law enforcement and intelligence services staff.

The Government has pledged to reform its public pension system by December under an IMF-led EUR19.95 billion financial rescue package.

Under the draft pension law, all special pensions will be integrated in the public system and will be recalculated depending on people’s contributions, which means they will be reduced.