Romania’s Pension Law To Cut Pensions Calculated As 80% Of Last Salary

He said the government will continue to promote a law on a unitary pension system, for which he wanted to seek a confidence vote in Parliament in October. However, Boc’s government collapsed later that month in a no-confidence vote and the IMF-required pension law hasn’t been enacted.

„The law will not apply retroactively but we must end this era of privileges,” Boc said on TV.

Back in October, Boc’s government drafted an IMF-required pension law which was to increase retirement age and eliminate special pensions, such as those of lawmakers, magistrates, military, law enforcement and intelligence services staff.

The Government had pledged to reform the country’s public pension system by December under an IMF-led EUR19.95 billion financial rescue package.

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