Special pensions on the Senate’s agenda
The governments bill on the special pensions is to be put to the vote in the Senate.
Leyla Cheamil, 27.03.2023, 14:00
What will happen with the special pensions that are giving headaches to the authorities in Bucharest on account of the current law not being compliant with the requirements of the European Commission and of the World Bank? There is a series of categories of such pensions in Romania that are not based on the contribution principle, including those of magistrates, the military and diplomats. In the European Union, Sweden is the only country not to have any form of special pensions. By the end of the week, the Senate must vote on a bill to reform the special pensions proposed by the government. Beyond this deadline, the bill will pass through tacit agreement and will be then submitted to the Chamber of Deputies.
The governments bill refers to the reduction of expenses with workplace pensions and indemnities as laid down in the National Recovery and Resilience Plan. The changes refer to the calculation of workplace pensions based on seniority and taking into account incomes. “Workplace pensions can no longer exceed the incomes obtained during the active period […] and workplace pensions will be calculated based on contribution”, according to an explanatory report submitted to the Senate.
President Klaus Iohannis said last week that the bill must seek a fair, equitable and sustainable pensions system. Marcel Ciolacu, the leader of the Social Democratic Party in the ruling coalition, said Romania wont lose one euro from the National Recovery and Resilience Plan and that the bill on the reform of special pensions must be made taking into account the reality at this moment, citing the war in neighbouring Ukraine as an example. He admits there is inequality, but promised to address it in the future.
On the other hand, the opposition has repeatedly accused the ruling parties of not really wanting to reform special pensions. The Save Romania Union says the parties in the ruling coalition are prepared to see Romania lose billions of euros meant for the countrys development in order to maintain the benefits of several categories of employees. The Save Romania Union MP Cristian Seidler said the bill proposed has very little impact on budget expenditure for special pensions. “It takes a lot of courage, for the technical solution is very simple, but its exactly courage that the current government is lacking to carry out this reform demanded by the entire Romanian society”, Seidler also said. (CM)
