Romanian Govt Estimates To Save Up To RON80M/Year Following Pension-Wage Cumulus Ban

The government expects the sum to increase by RON5 million annually over the next four years, to reach RON80 million.

The savings the government estimates to make following this decision, which have also been included in an official government document, are of RON60 million this year, RON65 million in 2010, RON70 million in 2011, RON75 million in 2012 and RON80 million in 2013.

The government passed a draft law Wednesday stipulating that retirees who took new government jobs are prohibited from collecting state pensions if their pensions top the average monthly wage, which is currently set at RON1,700.

Romania’s national prognosis commission sees the average gross monthly wage at RON1,693 this year and RON1,832 in 2010. The government’s decision is subject to parliamentary approval.

“All retirees who collect pensions below the value of the gross average wage, of some RON1,700, can continue to collect both the pension and salary from the state. All those whose pensions top the gross average wage, namely all those who receive more than RON1,700, will have to choose between pension and the state pay within 15 days since the enforcement of the draft law, following parliament adoption,” Romanian Prime Minister Emil Boc said.

Boc mentioned other EU states, including France, Portugal or Greece, have laws prohibiting retirees to collect both a pension and a salary above a determined threshold, while the U.K., Sweden, Ireland, the Czech Republic or Germany prohibit amassing pensions on the second job.

Boc said the government’s decision does not target doctors, teachers, actors, maternal assistants and assistants to the disabled.

 

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