A bill that aims to index pensions twice a year was passed by Parliament in the first reading during its extraordinary meeting on Thursday.

According to the presidential advisor Ion Chicu, the bill provides for the implementation of a new concept of indexing pensions twice a year: on April 1 and October 1. On April 1, the indexation will take place according to current procedure - for all beneficiaries, equivalent with the average consumer price index for the last three years. On October 1, the indexation will target, in the first year of implementation - 2020, over 400 thousand pensioners whose pension size does not exceed the minimum subsistence level.

The draft law will also work towards increasing social allowances for the elderly and people with disabilities. It is due to take effect on January 1, 2020.

Alexandru Slusari, ACUM/DA, said that he will introduce several amendments to improve the bill in the second reading. His amendments regard a formula that applies to the gradual indexation of pensions for the poorest retirees.

His group colleague, Iurie Reniță, suggested that the project should be voted on in the second reading, after October 20 local elections, because the initiative was part of the electoral program of certain parties and candidates.

According to the National Social Insurance Company, at the beginning of 2019, there were 701 thousand pension beneficiaries in Moldova. The average pension is 1895 lei. Out of the total number of retirees, 75% are age retirees. At the same time, about 400 thousand people receive a pension below the minimum consumption basket.