The Independent Analytical Center “Expert-Grup” recommends the authorities to raise the retirement age for women from 57 to 62, up to the retirement age for men, and to also increase the social contributions payment period from 30 to 35 years so as to save the pension system. Another recommendation is to increase the pensions based on the consumer price index two times a year, not once, as now, IPN reports.
According to an analysis by “Expert-Grup”, the situation of the pension system in Moldova has worsened following the mass migration of people of working age. The ratio of employees, who contribute to the formation of pensions, to pensioners is 1.2:1, as opposed to 1.3:1 in 2006. According to international practices, the lowest admissible level is 4:1. The average pension in Moldova does not cover the minimum subsistence level, while the ratio of pension to salary is the lowest in the region.
To increase the people’s confidence in the pension system, the experts recommend eliminating the privileged pensions for former government functionaries, judges, local elected officials, etc. To augment the social insurance budget, the punishments for those who pay salaries illegally and for those who accept such a payment method must be made harsher. The use of cash should be discouraged.
“Expert-Grup” also suggests developing the optional pension system, with the retirement accounts being managed by private companies.
