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Pensions In 2011 Won’t Be Reduced Further Following This Year’s 15% Slash – Romanian Fin Min

Romanian Finance Minister Sebastian Vladescu said Wednesday it is unlikely pensions will be further reduced in 2011, after this year’s 15% reduction, adding that the pension level in 2011 will be set through the budget law.
Pensions In 2011 Won’t Be Reduced Further Following This Year’s 15% Slash – Romanian Fin Min
23 iun. 2010, 19:53, English

The minister said the Government is looking into ways to stop the upward trend of money transfers from the state budget to the pension fund, adding that 2% of the gross domestic product currently goes to the pension fund and the share could hit 7% of the GDP in three years.

Vladescu also highlighted that next year’s pension level will not be similar to 2010’s. He said that the 2011 pension level, as well as the wage level, will be set through the budget law and in line with the pension law and the unitary wage law.

Vladescu proposed Monday an amendment to the pension bill whereby next year’s pension point, an indicator used by authorities to calculate pensions, will be set through the social security budget law for 2011.

Vladescu said in a letter addressed to the Chamber of Deputies that the labor committee agreed, during debates on the pension bill, that the pension point be set at 732.8 lei (EUR1=RON 4.2234) when the pension law enters force. In this context, the social security budget deficit would be of RON12.5 billion in 2011, RON12.6 billion in 2012 and RON13 billion in 2013.