Government approves new pension law

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The Government has approved the draft law on public sector pensions, announced on Thursday Premier Emil Boc. “A new pension law is needed in Romania”, said the Executive’s head, adding that the adoption of such a law represents a necessity and an emergency for Romania.

When drafting the pension law a series of factors were taken into account, as the improvement of the pension system financial sustainability, keeping on the pensioners’ standard of living – gradual indexing with the inflation rate, establishment of the pension acording to the paid contributions, in line with the salary increase, early retirement reduction, implementation of stricter criteria for disability pensions, public pensions simplification legislation (integration of the special pensions and increase of pensioning ages, as well as promotion of an equitable treatment.

As well, the government had in view the application solutions of the public pensions conditions, as proposed by the loan agreements concluded in 2009 with the International Monetary Fund (IMF), European Commission (EC) and World Bank (WB).
A novelty is that the pensions law stipulates that all the people drawing an income from a professional activity must contribute to the social security system, among them authorized individuals and those working on the basis of a civil convention, lawyers and members of two religious cults being exempted, having their own pension system.

The basic element is the existence of a contribution paid by the employee, the employer or just by a person alone if he/she works on their own. People with activities based on an individual labor contract are mandatory insured in this public pension system, as well as civil servants, active military staff, policemen and civil servants with a special status within the prisons administration system, the national defence field, public order and national security staff, people active in elected offices or those named in the framework of the executive, legislative and judicial authorities, on the duration of their mandate, and the members of a craftsmen cooperation organization.

As well, other people benefiting of a monthly income have to be insured, as administrators or managers, members of a family association, people running independent activities, and also those drawing an income from intellectual property activities or collaboration contracts, other people drawing an income from professional activities.
Standard pensioning age will be, according the new law, 65 years both for women and men and the minimum contribution 15 years. The complete contribution is set at 35 years both for women and men.

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