The National Confederation of Trade Unions agrees that the pension system must be reformed. Despite particular concerns and dissatisfaction, trade unionists say many of the norms included in the reform bill are beneficial.
Contacted by IPN, the Confederation’s vice president Sergiu Sainciuc said the trade unions do not support the retirement age increase formula. On November 1, 2016, 70.4% of all the pensioners were women. If the retirement age is increased for men to 65 and for women to 62, fewer men could reach retirement. The data of the Demographic Research Center shows the life expectancy for those who are now aged between 14 and 19 is 54 for men and 62 for women.
As to the indexation of pensions, the trade unionists suggest that this should take place twice a year. The bill provides for the indexation once a year, on April 1, based on the Consumer Price Index (CPI), without taking into account the salary rise the previous year. Sergiu Sainciuc explained that the CPI must represent more than 2% for the indexation to take place and this is a problem that will affect the incomes of pensioners.
“Currently, 92% of the pensioners receive 180 lei a month in financial support. The trade unions proposed transforming the financial support into basic pension, of at least 200 lei. This means that this money will continue to be provided, but not as different payments, but as an integrated pension consisting of the basic pension of 200 lei and the insured person that depends on the length of service and calculated contribution,” stated Sergiu Sainciuc, noting that the proposal was rejected.
In a press release issued by the Government’s press service after Prime Minister Pavel Filip met with representatives of trade unions, it is said that the Premier noted the current pension system is inefficient and does not provide the pensioners with sufficient incomes for a decent living, about 83% of the pensions being below the minimum subsistence level. “The measures are designed to ensure the transparency of the system and will enable to raise the pension, and even double this for particular categories of people. The pensions will be valorized and this will lead to an increase in the financial resources that the people will get. It is planned that in 2017 the pensions will be increased by 6.8%,” stated Pavel Filip.
The reform keeps the rights and retirement conditions for police employees. The only change is that the pension will be calculated and paid by one body instead of six – the National House of Social Insurance.
