Talks on pensions

Corina Cristea, 07.06.2021, 12:07

Right now, we have a 16-billion deficit in
the social security budget. By 2030 an additional 1.8 million people will be
retiring on top of normal figures, as a result of the baby boom of 1966-1969.
As a result, pressure on the public pension system is mounting. Moreover, it is
already facing harsh inequities. The ratio between the lowest and highest
pensions is 1%. Thousands of pensions win litigations against the Romanian
state and we have an obligation to increase contributions to the pension system,
curb inequities and make the system more sustainable and predictable, instead
of serving the interests of decision-makers who increase pensions ahead of
elections. We also need to digitize the pension database, so that by 2022
Romania should have 5 million digitizes pension records.

The current legislation has allowed for a
14% increase in the pension system, operated last year, Minister Turcan went on
to say. Pensions will also increase in 2022 in line with the inflation rate, whereas
by the end of the next year a new pension law will be adopted, the Romanian
official also pointed out. (VP)