Govt to increase pensions as from October 1

The 20% increase in the reference point for the computation of pensions that will lead to a rise in public pensions, the farmers’ pensions and the recalculation of pensions for former group I and II workers will become effective on October 1, ahead of the initial schedule.
Prime Minister Calin Popescu-Tariceanu said on September 16, after a meeting with officials of the opposition Social Democratic Party (PSD) at the Victoria Government Palace, that he had discussed the matter with the labour and the finance ministers and decided that the rises will become effective in advance because of excellent economic results on economic growth.
Tariceanu added that the pension increase is not a social security measure.

„I want to say once again that the pension increase is not a social security measure, but the result of economic growth and of the Right policies that have generated prosperity in Romania. A modern society treats pensioners with dignity and respect and rewards their merits and lifetime work. The pensions are nothing more than the outcome of the contributions they have brought to the state fund during a lifetime of work. They have a right, this is not a favour, because they have the right as they have personally contributed to the fund,” said Tariceanu.
He added that any modern country that is also a member state of the European Union should display decency in its treatment of this social category, and Romania owes more to pensioners, because their purchasing power has eroded the most after 1990 of all the social categories in Romania.
The reference pension point will increase by some 20%, from a current RON 581.3, to RON 697.5. The increase had been initially scheduled for January 1, 2009, but the Government late this August decided to move it backward to November 1.
„As regards the modification in the application date of the increase in the pension point, I have said that PSD argued October 1 to be the correct date for it, instead of November 1, as the Government wanted, because bills in wintertime and the volley of price increases affect mainly the pensioners. After a conversation with the prime minister, the labour minister and the finance minister, the Government accepted to move the enforcement of the rise in the pension point to October 1.
Given the latest developments, the motion of censure against the government is no longer justified,” PSD national leader Mircea Geoana said on September 16.
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