UPDATE: Romania’s PM Ready To Resign If Pension Law Is Not Enacted

„I’m putting my position on the line. Either the law is enacted, or the Government steps down,” Boc said.

Boc added he is asking the Parliament for a confidence vote to enact the pension draft law before the one-month election campaign for presidential elections set on November 22.

„I want to complete this law before the election campaign starts, as we have no chance to enforce it afterwards. The draft law does away with lawmakers’ special pensions,” Boc said.

Boc added the new pension law applies the contribution principle and all special pensions will be recalculated, while those higher than the contribution level will be reduced.

Boc highlighted the budget provides 1.5 billion lei (EUR1=RON4.2670) for paying pensions and if this sum is not modified „today’s young people will not benefit from state pensions in the future.”

Romania’s Government will seek a confidence vote in Parliament to enact a public pension law, as it did last month with the unitary wage law for the public sector, the law on education and a law reorganizing government agencies and public institutions.

Prime Minister Emil Boc said Tuesday the Government will put the IMF-required pension law on the fast track and will enact it by asking for a confidence vote in Parliament.

The Government has pledged to reform its public pension system by December under an IMF-led EUR19.95 billion financial rescue package.

The draft law has been approved by the Government and will be sent to Parliament for a confidence vote.

Boc said the draft law sets women shall retire at 65, same as men, as of 2030. Retirement age for women will be increased by three months each year starting 2015, to reach 65 in 2030. Under the current public pension system, the average retirement age is 63.8 for men and 58.9 for women.

The same retirement age standard will be gradually applied to staff in the military, police and intelligence services, the judiciary and lawmakers, which currently benefit from early retirement ages and special, higher pensions.

All special pensions will be integrated in the public system and will be recalculated depending on people’s contributions.

The new law will also include contributions to the public pension system from liberal professions.