Romanian Draft Unitary Public Pension Law Establishes Individual Categories, Contribution Levels

The draft law states that the public pension system will include people achieving a gross yearly income worth at least four average gross wages used in the calculation of the social security budget, and people who fit within one of the following categories: single associate, associates, shareholders, administrators or managers who concluded administration or management contracts, members of the family association, individuals authorized to unfold independent activities, individuals hired by international institutions but who do not get social security from their employers, individuals who achieve income exclusively from copyrights, civil agreements or collaboration contracts, as well as people achieving income from professional activities.

Those gaining income exclusively from copyright, civil conventions or collaboration contracts, aged 18 or over, are obligated to enter the social security system based on the individual insurance statement, which needs to be filed within 30 days from inclusion in the system.

Also, the draft law on the unitary public pension system includes military staff, police officers and public servants with special statute within penitentiary administration, defense, public order and national security, which receive monthly aid provided from the state budget.

Other categories eligible for the public pension system, based on social security contract, include lawyers, members of the clergy and people involved in legally acknowledged cults, others than those integrated in the public system.

The document also states that once the law comes into force, the National House for Pensions and Other Social Security Rights will become the National House for Public Pensions (CNPP), which will coordinate all county, city and local pension houses, created depending on the number of social security beneficiaries.

The social security contributions established through the new pension law are differentiated, depending on working conditions, into normal conditions, unusual conditions, special and other working conditions.

Thus, the contribution reaches 31.3% for normal working conditions, 36.3% for unusual working conditions, 41.3% for special and other working conditions, in national defense, public order and national security.

The individual contribution includes the 2.5% contribution paid to mandatory private pension funds, which will grow to 6% through a gradual 0.5 percentage point annual increase.

The draft law will be up for public debate on the ministry's website until February 5.

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