The pension system in Moldova is extremely sophisticated and discriminatory. It is very sophisticated because the formula for calculating the pension is not understood by many as special studies are needed for the purpose, stated journalist Vlad Bercu. “During the last few years, the pension system in the Republic of Moldova has been assessed as a system in a crisis, close to collapse, which is not sustainable and which, without injections from the state budget, would fail or would face serious financial problems,” Vlad Bercu stated in an interview for Radio Free Europe, quoted by IPN.

Asked if the bill to reform the pension system proposed by the authorities can remedy the situation, the journalist said it is not yet known. He gave as example the proposal to increase the retirement age to 62 for women and to 65 for men. This is a necessary step that has been long discussed. The people will work longer and will contribute more to the pension fund.

Vlad Bercu said it is true that life expectancy in Moldova is one of the lowest in Europe, especially in the case of men. “Life expectancy improved yet during the last few years. In 2015 it was of 72-75 years for women and over 67 years for men, if we believe statistics. The rise in retirement age in the case of women is imminent. Women live longer. In Europe, there are countries where the retirement age for men and women is equal,” he stated.

As regards the planned rise in the length of service required before retiring, the journalists said this will bring more money to the pension fund.

Asked how the authorities could encourage the people to fully contribute to the pension system and could prevent the illegal payment of salaries, Vlad Bercu said a number of initiatives and actions were launched, but the effect is almost zero. “I think a solution is to dissolve pillars 2 and 3, especially pillar 3 that envisions the creation of non-state, private pension funds. The people form the pension themselves with the earned money,” he stated.

The journalist also said that the bill to reform the pension system must be debated publicly, at roundtable meetings and discussions with experts and people so as to reach a consensus or this reform, either good or bad, will be doomed to failure.