The draft pension system reform was adopted in the first reading by the votes of the 53 MPs of the parliamentary alliance attending the December 9 sitting, close to 9pm. This stipulates a new pension calculation method and provides for the extension of the retirement age and length of service required for retiring, IPN reports.
The pension will be calculated based on the monthly average insurance income earned after January 1, 1999. This will be determined according to the new formula starting with April 1, 2017, while the previously set pensions will be recalculated. Minister of Labor, Social Protection and Family Stela Grigoras explained in Parliament that the new reform institutes a balanced pension system and is designed to ensure decent living conditions for pensioners. The method of calculating pensions will be standardized and nondiscriminatory treatment will be ensured by applying the contributiveness principle, according to which the pension is equal to the made contribution.
According to the minister, the new calculation formula will be simple and transparent. By an online calculator, each of the taxpayers will be able to calculate the future pension based on the paid contributions. The replacement rate in case of a length of service of 15 years will be 22%, of 30 years 40.5%, of a full length of service of 33 years (women) 44.5%, while of a full length of service of 36 years (men) 48.6%.
The retirement age will be increased gradually, by six months as of January 1, 2017, during ten years. According to the new provisions, women will retire at 62, while men at 65.
During the debates on the bill, unaffiliated MP Petru Stirbate proposed that the retirement age should be the same for men and women, of 63 years. In this connection, Stela Grigoras explained that they considered a number of versions as regards the rise in retirement age. All social partners’ reports recommend at least two variants: 62 years for women and 65 years for men or an equal retirement age of 63.
“There are invoked a number of arguments, including the longer life expectancy for women and particular equality aspects. Now a woman’s pension represents 70% of a man’s pension. The proposal to raise the retirement age to 63 can be examined in the second reading,” stated the minister.
As to the length of service required for retiring, Stela Grigoras said this will be increased for women from 30 to 33 years and for men from 33 to 36 years. Those who contributed to the pension system and have the required length of service can ask for an early old-age pension at most three years before reaching the standard retirement age.
The Socialist, Liberal-Democratic and Communist MPs left the assembly hall in protest.
