The MPs Thursday passed a bill providing for the institution of a more equitable pension increase system in the first reading. The bill was drafted by the Democrats. The new system will benefit the pensioners with pensions lower than 1,500 lei, who represent about 95% of the total number. The Democrats proposed a new method for determining pensions that is aimed at reducing poverty among the elderly and at making the pension raises more perceptible year by year, IPN reports.
The growth pace of small pensions will be much higher than the current pace, Head of Parliament Marian Lupu explained, referring to the PDM’s bill. “This model will help diminish the current discrepancy of 8-10 times in pensions and to alleviate poverty,” he stated.
Communist MPs criticized the bill, saying some of the categories of pensioners are disadvantaged. Democratic lawmaker Adrian Candu, who presented the bill, replied that the legislative initiative is aimed at reducing the wide discrepancy between the low pensions and the high ones. Currently, he low pensions rise by tens of lei a month, while the large ones by hundreds of lei.
If it is adopted in the second reading, the bill will take effect in 2014.
The pensions are increased annually on April 1, based on the rate of inflation the previous year and the rise in the average salary. The bill institutes a new method of determining the pension raises. The pensions of under 1,500 lei will be raised depending on the rate of inflation the previous year plus 50% of the rise in the average salary. The pensions higher than 1,500 lei will be increased only based on the inflation rate. Thus, the pensions lower than 1,500 lei in 2011 would have been increased by 13.4% instead of 9.6%, while those higher than 1,500 lei – by 7.6%.
The average pension in Moldova is now 1.000 lei. There are about 670,000 pensioners, over 630,000 of whom have pensions lower than 1,500 lei.
