Romania PM Says Earlier Pension Hike Unacceptable -Sources

Romanian Premier Calin Popescu Tariceanu on Thursday said the government is unable to satisfy the propositions put forth by social democrats to hike pensions as of November 1 instead of January 1, 2008 or to extend the period for pension recalculation, ministry sources said.

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Tariceanu sent two notifications to the Senate president Nicolae Vacaroiu, mentioning hiking the pension point to 35.7% of the gross average salary as of November 1 would trigger additional costs of 531.1 million lei (EUR1-RON3.5248) to the 2007 social insurance budget, the mentioned sources said.

Tariceanu said the government already operated a 30% increase of the pension point from RON416 to RON514 as of November 1 and it plans another increase to RON581.3 (or 35.7% of the gross average salary) starting with 2008.

Under the country’s pension law, the pension point is scheduled for a new hike as of January 2009, from 37.5% to 45% of the average gross salary.

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