RRI Live!

Listen to Radio Romania International Live

A New Pension Bill in Romania

The Government in Bucharest wants a new pension law

A New Pension Bill in Romania
A New Pension Bill in Romania

, 10.08.2018, 12:05


In terms of purchasing power, the average salary in Romania accounts for approximately two thirds of the European average, but the average pension is way smaller, namely one third of the average in Europe. According to Adrian Mitroi, a professor with the Academy of Economic Studies in Bucharest, quoted by Agerpres news agency, a modern society must ensure a proper standard of living also for those who are retired. Despite lots of counterarguments, in a normal economy, the specialist says, pensions must increase, just like salaries.



Against this background, the left-wing Government formed by the Social Democratic Party and the Alliance of Liberals and Democrats has drafted a new pension law for the public sector, which, if adopted, would come into force in stages, until 2021. Published on the Labour Ministrys website, the new pension bill stipulates higher pensions. But, most importantly, the new law is aimed at eliminating inequities that exist in the system. There are many citizens who have contributed equally to the pension fund, but they receive different amounts of money. Also, there are big gaps between men and women.



That is why, under the new law, pensions will be paid only depending on each individuals contribution, and those who have the same seniority, but retired at different moments in time, will get the same amount. The value of the pension point would grow by 70% until 2021, from approximately 234 Euro as it is today. The bill also includes provisions for those who have contributed a minimum of 15 years; they will be able to chose between the minimum guaranteed pension, calculated in keeping with their contribution, and a social benefit.



The women who have worked 15 years and have given birth to three children, whom they have raised until the age of 16, are entitled to a reduction in the retirement age of 6 years. Also, mothers with more than three children will benefit for another one year reduction for each child. Another important provision is that concerning citizens who have masters and PhD degrees, as this will too add money to their pensions.



The Government has stated that no pension will drop, even if, after recalculation, the amount would be smaller. Debates in Parliament are due to start next month, for the law to come into force on January 1st 2019, which would mean that some 5 million pensioners would receive higher pensions. Until then, the bill will be under public debate for 30 days, and suggestions can be submitted to the Labour Ministry by August 18th.



However, trust in the pension system alone, no matter how generous and fair that may be, is not enough. Specialists believe that any active person should take time and think in advance of what they can do in order to ensure a higher purchasing power for themselves and to protect their assets and incomes, so that they can benefit from a decent standard of living even whey they retire. So, a public pension should ideally be complemented by other financial alternatives.


Photo: roaep.ro
Today in the News Monday, 25 November 2024

Surprising result in Romania’s presidential elections

The independent candidate Călin Georgescu takes the lead in the first round of the presidential elections in Romania.       Over 9.4...

Surprising result in Romania’s presidential elections
(foto: Polizia di Frontiera Romena)
Today in the News Monday, 25 November 2024

Closer to full Schengen accession

The Ministers of the Interior of Romania, Hungary, Austria and Bulgaria reached a historic agreement in Budapest on Friday on the enlargement of the...

Closer to full Schengen accession
Signing of the protocol (foto:
Today in the News Friday, 22 November 2024

Transition program towards F-35, launched

The Romanian Air Force’s transition program to 5th generation aircraft has been launched.   Romania’s decision to acquire advanced fighter...

Transition program towards F-35, launched
Energy (foto: EdWhiteImages / pixabay.com)
Today in the News Friday, 22 November 2024

The National Energy Strategy, adopted

Using local resources, reducing imports and making massive investments in production capacity are important elements of the new National Energy...

The National Energy Strategy, adopted
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company