Decreasing number of taxpayers seriously affects pension system

The number of taxpayers who pay contributions into the social insurance budget in Moldova has decreased and this seriously affects the pension system. Over a year, the working population fell by about 300,000, said Minister of Labor, Social Protection and Family Valentina Buliga, quoted by Info-Prim Neo. The minister said the pensions in Moldova are very low and this is worrisome as no reform was made in the area during 7-8 years. She stressed the pension is not a reward for a merit, but a benefit to which are entitled those who pay social insurance contributions during the working life. “Only 37% of the working population paid social insurance contributions last year. Pensions were paid to 84% of the persons who reached retirement, which is 461,000 people or 13% of the total population,” said the minister. Valentina Buliga said many people were forced by poverty to leave the country. Now every third family has one or several members working abroad. “During the last few years, Moldova survived owing to the remittances sent home by the Moldovans working abroad. The obligation of the state was to protect these persons and create workplaces for them,” said the minister. According to Valentina Buliga, in 2009 Moldova signed only two agreements with countries where Moldovans work – Portugal and Bulgaria. Afterward, there were signed agreements with Austria, Luxemburg, and Romania. An agreement will be signed with the Czech Republic later this month. “There are countries where Moldovans work legally and these agreements offer them the possibility of coming with money from the countries into whose budgets they paid contributions. It is a very important protection element for our people. We are now negotiating agreements with Poland, Slovakia, and Lithuania. They will be later signed and ratified,” said the minister. The minister said that effort is made to make the pension system more attractive. “Paying social insurance contributions, the Moldovan people must know that this money is deposed into an account and they will receive it when they reach retirement. We must offer the Moldovans the possibility of ensuring a decent life after retirement, not waiting for financial assistance,” said the minister. The National Development Strategy - Moldova 2020 will include a separate chapter on the pension system. Valentina Buliga said the objective is to make the pension system equitable. “This means that the social equity must be ensured,” she stated.