Nearly 200 Romanian Pensioners Picket Government HQ

About 1,500 pensioners across the country are expected to protest Thursday in front of prefects’ offices.

 

The head of the national federation of pensioner’s unions Preda Nedelcu said people are displeased with the fact that the law raising the pension point to 45% of the gross average wage will no longer be observed starting April.

 

"The law is currently effective and pensioners received in February, and will receive in March, pensions calculated at 45% of the gross average wage. But as of April, when the government revises the state budget, the pension point will come to account for 42.2% of the gross average wage,” Nedelcu said.

 

The government will change the calculation of pensions and increase them depending on the annual inflation rate instead of the gross average wage, to balance the country’s public pension fund on the medium and long term under Romania’s agreement with the International Monetary Fund, or IMF.

 

Sources close to the negotiations between Romanian authorities and the IMF told MEDIAFAX the change will be introduced in the following years, but the change won’t have immediate effects as authorities aim to stabilize the public pension system in the long run.

 

Late January, the Romanian government decided pensions will increase 5% this year, 3% starting April and another 2% starting October. Also, the minimum social pension was set at 350 lei (EUR1=RON4.2838) in two stages, as of May and as of October.

 

Labor minister Marian Sarbu said at that time the 5% increase takes public pensions to 43.2% of the country’s gross average salary, instead of the 45% stipulated in the governing program.

 

Under the current system, pensions are calculated at the beginning of each year depending on the average gross salary for the respective year calculated by the country’s National Forecast Commission, or CNP. The commission’s most recent forecast sees the average gross salary up 5.8% this year, to RON1,693.

 

However, pensions increased significantly as the pension point was raised gradually from 31% of the gross average wage in 2007 to 37.5% of the gross average wage mid-2008.