The pensions set in 2001-2008 will increase by 5-30% following the valorization of the insured income. The process starts on April 1 and at the first stage, in the course of the year, the pensions of over 80,000 recipients will be recalculated, Minister of Labor, Social Protection and Family Stela Grigoras stated in a press club meeting on March 16, IPN reports.
“The pensions fixed before 1999 are much higher than those set after this date. The valorization is designed to even up the average pensions and to update the insured income so that the pensions, no matter when they were calculated, are more or less equal. It is an element of equity,” stated Stela Grigoras
The valorization of the insured income means recalculation of pensions by taking into account the depreciation of money in the period during which the insured incomes were obtained, before the pension is set. All the pensioners will have their pensions recalculated in stages.
According to the minister, the recalculation of pensions this year will cost the social insurance budget 103 million lei. In 2019, there will be recalculated the pensions fixed during 2009-2014, while in 2020 those set from 2015 until March 31, 2017.
As of April 1, 2017, there will be applied a new pension calculation formula that ensures a connection between the size and payment period of social insurance contributions and the size of pensions. Consequently, the pensions set after April 1 will increase by 45% on average.
