The retirement age could gradually rise from 57 to 62 for women and from 62 to 65 for men. The annual increase will be of six months and will be applied from next January. This is provided in the draft law on the pension system reform that was proposed for public debates by the Ministry of Labor, Social Protection and Family, IPN reports.
The bill also envisions the rise in the mandatory length of service from 30 to 33 years for women and from 33 to 36 years for men. According to the bill authors, these measures will contribute to a significant growth in the people’s contribution to the financing of the pension systems. Also, when the mandatory length of service is achieved, the person will be able to retire before time, while those who will continue to work will benefit from a recalculated pension.
The document envisions the launch of a new service called the online pension calculator. This will enable the people to calculate their future pension. The size of pension will depend on the paid contributions.
The draft law makes the social insurance for owners or lessees of farmland and for police employees mandatory. “The pension system reform will make the employment conditions equal for all categories of people and everyone will pay social insurance contributions,” says the informative note to the bill.
The method of calculating the social insurance pensions for some categories of people, such as MPs, members of the Government, public servants, local elected officials, judges and prosecutors will be unified and the ‘special length of service’ will be excluded from the public social insurance system so as to reduce inequities.
The Ministry of Labor enumerated among the biggest challenges faced by the pension system the low number of taxpayers and of social contributions to the pension system, different retirement ages, population ageing, labor force migration, inequitable retirement conditions, informal economy and undeclared work.
If the bill is adopted in the current form, only the National House of Social Insurance will set and pay pensions.
