The pensions system reform implemented in Moldova since the start of this year does not meet the expectations of pensioners or future pensioners. There are many shortcomings that the authorities should remove to create a non-discriminatory pension system, shows a study that was presented in a roundtable meeting that centered on the drawbacks of the new Law on Pensions. The study was conducted by the Friedrich Ebert Foundation Moldova in partnership with the National Confederation of Trade Unions, IPN reports.
According to the study, the financial support of 180 and 100 lei a month for complete and incomplete insurance periods was annulled for pensions collected as of April 1, 2017, but was kept for the pensions set before this date. The financial support should be replaced with a basic pension for all pensioners, depending on the insurance period, regardless of their incomes and the period when the pension was set.
The pension indexation time is another shortcoming of the reform. Under the new regulations, the pensions are adjusted annually on April 1 and only if the Consumer Price Index exceeds 2%. It is recommended that the pensions should be indexed every time the CPI exceeds 2%.
The right to early retirement, three years before official retirement, is considered discriminatory when it is about women and men. The men can apply for such a pension from January 1, 2017 if they have complete insurance period of 33 years and 6 months. The women must wait until July 1, 2022 to do this. It is recommended that both the men and women should be able to ask for early retirement as of January 1, 2017.
The study reveals that the social insurance contributions of public system workers represent 35% of the cost of pensions in the public sector. The other contributions are of those from the private sector. Consequently, it is not equitable for the salary earners from the private sector, who have lower pensions when they retire, to subsidize the pensions of those who work in the public sector and have higher pensions. Thus, Article 34 of the new law on the funding of public sector pensions should be modified.
Attending the roundtable meeting, deputy chairman of the National Confederation of Trade Unions Sergiu Sainciuc said the pension system reform is a necessity for the Republic of Moldova, but other reforms should have been launched in parallel with this, to fight underground economy, illegal labor and illegal payment of salaries. “The reform should include measures to attract investments, create jobs and increase salaries. All these reforms were announced and they should be implemented faster so as to see the expected result,” stated Sergiu Sainciuc.
On December 16, 2016, Parliament adopted the pension system reform law that provides that women and men in Moldova will retire at the age of 63. The retirement age will grow in stage. The insurance period was equaled to 34 given that the population is aging and the number of pensioners increases swifter than of employed persons.
