Pensions indexed as of April 1

Starting April 1, 2008, the pensions are indexed. In its Wednesday’s sitting (March 12), the Cabinet approved a decision in this respect, Info-Prim Neo reports. The indexation coefficient in 2008 will be 17%, taking into account the annual increase of the consumer prices’ index of 12.3% and the annual rise of the average monthly salary of 21.7% the previous year. Commenting on the approved decision, Galina Balmos, the minister for social, family and child protection has said all the types of pensions established for work, for public servants, for customs employees, as well as the indemnities for disability, established by the Law on labor accidents and professional diseases will be indexed. Indexing the pensions of MPs, public servants, customs employees will be done only for the part paid off from the state social insurance budget. The indexation coefficient of the capitalized period payments, established by the Law of 30 July 1998 regarding the capitalization of the period payments will be 17%. The indexation coefficient of state allocations for certain categories of citizens, except for the nursing allocation and the allocation in case of death will be 12.3 per cent, taking into account the average annual growth of the consumer price index for the previous year. Starting April 1, the pensions of the military and of the persons in the commanding corps and in the interior troops will be indexed by 12.3%, as well taking into account the average annual growth of the consumer price index for the previous year. According to Galina Balmus, now there are 620,000 registered beneficiaries of social assistance in the country. According to estimative calculations, 506.8M lei from the state social insurance budget and 13.6M lei – from the State Budget are necessary to implement the decision. These means were envisaged in the Social Fund Law, yet, to cover all the expenses required in this regard, 956,800 lei more from the state budget are necessary. The minister has specified that, after the indexation, the minimum age-pension will be 475 lei, for peasants - 422 lei, the 1-degree disability pension will be 337 lei, 2nd degree - 326 lei, 3rd degree – 229 lei. Earlier, when the Law on the state social insurance budget for 2008 had been worked out, they talked of an 18-per-cent indexation of pensions. In 2007 the indexation coefficient was 20.6%. E.N. -- $1=10.84 Moldovan lei.