President Igor Dodon intends to propose a bill that would see pensions indexed twice a year – in October, in addition to April as is the current annual practice. The proposal was discussed at the President’s Office during a meeting with representatives of the Trade Unions, the Ministry of Health, Labor and Social Protection, and the Social Security Company.
The President’s Office said in a press release that the April indexationwill continue to cover all the beneficiaries, based on the three-year average of the Consumer Price Index.
The indexation proposed to be introduced beginning on 1 October 2020 will benefit about 400,000 pensioners whose pensions is below the subsistence level. More beneficiaries will be phased in as the threshold is gradually increased. Either the CPI three-year average or the first-quarter CPI, whichever is bigger, will be applied for the indexation.
Another proposal presented at the meeting intends to guarantee that survivors inherit the monthly pension of the deceased spouse for a limited period of time.
In 2018, 3268 people died before they could enjoy receiving retirement pensions for at least 5 years. This “is absolutely discouraging” for the people who contribute to the Social Security Fund throughout their careers, says the President’s Office.
