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May 17, 2022
Social SOCIAL & HEALTH

Half of Romanian retired persons receive less than 800 lei pension

Half of the retired persons receiving a retirement benefit under the public social security scheme – meaning approximately 2.3 M – have a pension under 800 lei. At the end of Q1, there were 1.14 retired persons for one employee, according to the data supplied by the National Public Pension Body (CNPP).

The data submitted by CNPP to the Labour Ministry shows that, at the end of Q1, there were 5,162,421 retired persons in Romania, less by 40,827 compared to the similar period of 2014 and by 21,634 compared to the end of December 2014.

‘Given the total of 4,508,200 employees recorded on 31 March 2015, communicated by the National Statistics Institute, there were 1.14 retired persons for one employee. Out of the total, 90.74% were receiving a pension under the public social security system (4,684,610 persons) and 9.26% farming retirees (477,811 persons)’, CNPP says in the figures sent to the Ministry of Labour, Family, Social Welfare and Elderly Persons (MMFPSPV), according to Mediafax.

According to CNP, at the end of March, compared to the same period last year, the number of socials security retired persons was higher by 8,462 people and the average retirement benefit was higher by 41 lei.

At the end of the first quarter, 48.71% of the public system retired persons had a pension below 800 lei, with the average pension being 886 lei.

‘The minimum gross wage in March 2015 was 975 lei and the medium gross salary was 2,529 lei. The average public pension represented 35.03% of the medium gross wage and 48.44% of the after-tax medium wage (1,829 lei)’, according to data sent to the Ministry of Labour.

Most retired persons in the public system were those retired on term – 71.83%, standing for a total of 3,365,009 persons.

‘Out of the total number of public social security retired persons retired early or with partial early retirement, women represented 56.31% and, out of the total number of people retired on term, women represented 54,68%’, according to CNPP statistics.

At the end of March there were 477,811 retired persons from the former social security system for farmers, and 90.54% received pensions for retirement on term, 0.77% invalidity pensions and 8.69% received their pensions.

‘The average pension was 361 lei, higher by 19 lei than in March 2014. People retired on term had an average pension of 381 lei, higher by 20 lei than in March 2014’, CNPP also states.

At the end of the first quarter of this year there were 600 beneficiaries of social welfare of the pension type, less by 117 persons than in the period of reference in 2014, the average social welfare they received being 218 lei.

In what regards the evolution of private pensions – Pillar II – there has been a constantly ascending trend since the beginning of the system.

At the end of March, 6,386,888 persons were participating in the Pillar II privately managed pension funds, 724,315 (11.34%) persons more than in the same period last year. Most of the subscribers to private pensions schemes are over 35 years of age – 3,091,092 persons.

 

President promulgates law on special pensions for diplomats and parliamentary civil servants

 

President Klaus Iohannis on Tuesday promulgated the Law amending Law No. 7/2006 on the statute of the parliamentary civil servant and the Law on the payment of occupational pension to the members of the Romanian diplomatic and consular corps. The special pensions for diplomats and parliamentary civil servants are therefore now official.

According to the law on special pensions for diplomats – initiated, among other, by Marian Neacșu (PSD), Florin Iordache (PSD), Carmen Moldovan (PSD) and Kerekes Karoly (UDMR) – they could receive an occupational pension of 80% of the average net monthly salary in the last 12 months of activity. All those who have worked a minimum of 18 years in diplomacy or foreign trade will qualify. In addition, the entitlement will also go to the heirs of the holder, ‘under the conditions of the legislation for the public pension system’.

The same group of MPs also proposed that the parliamentary civil servants should receive special pensions of 80% of the average gross salary in the last 12 months. According to the recitals of the bill, the measure was needed in order to prevent discrimination against parliamentary civil servants. Until 2010, they had special pensions, but the Boc Government abrogated them.

The Labour Committee issued a favourable opinion on the legislative initiative on 16 June,

The authors of the law claim that they removed the discrimination between diplomats and magistrates, who do have special pensions.

 

 

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