The pension system is seriously affected by the negative demographic processes. The persons aged over 60 in Moldova in 2013 represented 15.3% of the total population. The influence of the demographic situation on the pension system is evident. The expenditure of the state social insurance budget increases, yearly fueling the budget deficit. The state social insurance budget since 2009 has been in deficit, head of the National House of Social Insurance (CNAS) Maria Borta said in the international conference “Reform of the pension systems: international experience”, IPN reports.

The conference was held recently in Chisinau, organized by the CNAS and the International Social Security Association. Maria Borta said the reform of the pension system started when the pension system reformation strategy was adopted in 1998. Its goal was to create a system that would suit all the generations, to provide appropriate support in case of social risks and to ensure social equity and a balanced state social insurance budget.

Within the reform, the retirement age for men was increased to 65, while for women to 57. From July 1, 2011, the length of service required for setting the old-age pension for men has been raised by six months a year and will be raised until the service is 35 years. On July 1, 2014, the required length of service for men will be 32 years. For women it is 30 years.

Maria Borta said that one of the major objectives of the pension system reform is to gradually transfer the burden of the social insurance contribution from the employer to the employee. From 2009, the mandatory individual insurance contribution for insured employees has been 6% of the monthly salary, while for employers - 23% of the salary and other bonuses.

At any development stage of society, the pension system is exposed to challenges that need new approaches. The law on the adoption of the National Development Strategy “Moldova 2020” was passed in 2012. “It envisions seven solutions for the country’s sustainable development. One of the solutions is to create an equitable and sustainable pension system that would ensure decent living conditions for all the pensioners. The National House of Social Insurance is to implement the measures defined by the Government in this strategy so as to strengthen the pension system of Moldova and to ensure decent living standards for the recipients of pensions,” said Maria Borta.