The Minister of Labor, Raluca Turcan, stated today, exclusively on Antena3, that the pension system in Romania is not ready for a possible recalculation of all pensions. It would be about 5 million pensions, which would put the pension houses to the test.
“Around the election moments there was a lot of talk about an illusion, namely that increase of 40% which, in fact, basically, drawing the line now, still shows that many politicians have sold vain illusions, because that increase of 40% is on a law published in 2019, but intended to enter into force on September 1, 2021 to prepare the entire pension system with the recalculation of about 4.9 million pensions.Well, 4.9 million pensions can not be recalculated by today to tomorrow.
And, in fact, that law provided for a period in which all pensions were updated, so practically the files were prepared, and then a new formula was applied. But in order to prepare all the files, about 6,000 files on each pension fund, we needed about 1,000 extra people in the pension fund system, plus equipment and software to make the databases compatible, “said Raluca Turcan in the show “Meeting Point”, moderated by Radu Tudor.
Florin Cîţu announces that pensions do not increase after the CCR decision
On Wednesday, Prime Minister Florin Cîţu announced that pensions will not increase by 40%, as required by law.
“Romania did not allow itself last year, it does not allow itself this in 2021 (increase of pensions – ed.). At this moment, the law is going to be promulgated by the president, who has two options: to send it for re-examination in the Romanian Parliament or to promulgate it. We’ll see what the option will be.
The government and the coalition have assumed a timetable for raising pensions, we will increase pensions, but on the timing we have assumed. This is the option we are going on “, declared the Prime Minister Florin Cîţu.
“It is an increase in the pension point in the current economic conditions. Last year, not many countries increased their pensions. We have increased pensions by 14%. That 14% means an additional effort this year of 9 billion lei. Moreover, Romania last year was the country that increased salaries in the budget sector by almost 8%, while the EU average was around 2%.
The efforts made last year were very great and can be seen this year as well.
Considering that the inflation has decreased constantly, it means that the purchasing power has increased “, Cîţu also declared.
CCR: The increase of pensions by 40% is constitutional!
The Constitutional Court has ruled that a 40 percent increase in pensions is constitutional. The magistrates thus rejected the notification of the Government, which means that the Executive is now obliged to find the source of financing for the increase.
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