The Party of Socialists (PSRM) proposes amending the method of indexing pensions and other social benefits so as to increase the indexation coefficient. Under the bill presented by Socialist MPs, the indexation of all the pensions and social benefits will be of about 7% annually. The legislative proposal is to be registered in Parliament today, IPN reports, quoting a press release of the party.
The PSRM says the indexation of pensions two times a year – on April 1 and on October 1 – is kept. In April, the pension indexation coefficient will represent the average annual rise in the consumer price index for the last three years, while in October – the inflation rate in the first half of the given year. The indexation coefficient will be set by the Government.
“Based on the calculations we did, we propose indexing pensions and other types of social welfare by 3.89% as from April 1. The indexation of pensions on October 1 is kept. Forecasts show the indexation will be of 3.2%. In total, the indexation will be of approximately 7% a year,” stated Socialist MP Alla Darovannaya.
Her mate Vladimir Odnostalco noted that the pensioners and recipients of social benefits before Easter will also receive a lump sum of 1,000 lei in aid. It was estimated that 690,000 pensioners and recipients of social benefits with incomes lower than 4,000 lei will get such a lump sum in April already. The law was adopted in Parliament last December.
President Maia Sandu on March 10 proposed returning to the indexation of pensions once a year based on the rate of inflation for the previous year. According to a bill submitted to Parliament, such a change would mean an indexation in April of 3.7%, equal to the rise in prices in 2020. The costs of 426 million lei needed for financing this measure can be covered by the financing agreement signed by the Republic of Moldova and the European Commission on February 22, 2021, to the value of €15 million, and by reviewing current costs for goods and services.
