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Romania To Spend Extra RON2B On Pensions Each Year, Unless Fraudulent Retirees Removed

Romania will have to increase its pension budget by two billion lei (EUR1=RON4.0923) each year on the medium-term, unless it can save up by removing people who retired by falsely citing illness or injury from the category of pensioners, according to the government’s draft convergence program.
Romania To Spend Extra RON2B On Pensions Each Year, Unless Fraudulent Retirees Removed
07 mart. 2010, 15:28, English

„If savings cannot be made by reducing the number of pensioners who cite illness, by way of re-evaluating their health, it is necessary to increase pension spending by RON2 billion each year, on the medium-term. Also, unemployment spending may be higher in case of a higher jobless rate compared to the one in the base scenario,” says the program, obtained by MEDIAFAX.

Romania’s unemployment rate could reach 9% by the end of the year, in a worst case scenario, 1.7 percentage points more than the base forecast considered by the Government. It would decrease to 6.7% next year, as economic growth restarts.

After approving the draft law on the unitary pension system, the Government announced it would run checks on people who retired citing illness or injury.

The convergence program is revised each year and sent to the European Commission after receiving Government approval.