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Constitutional Court: Law on special pensions for local elected is unconstitutional

The Constitutional Court of Romania has ruled on Wednesday that the law on pensions for mayors, deputy mayors, chairmen and vice-chairmen of county councils is unconstitutional, admitting the government referral, media reports.
According to sources with the Constitutional Court the decision, which has not been yet published, is to be forwarded to the government.
The plenum of the upper chamber passed the law on local representatives-elect on December 22 by 86 votes to one, with the Liberal MPs leaving the hall before the vote. The allowance for the mandatory retirement also refers to the local leaders that used to be mayors, deputy mayors or county council leaders before the current law coming into force.
The bill is to re-enter parliamentary debates.
According to the law adopted about a month ago, the mayors, deputy mayors, presidents and vice-presidents of the County Councils who have the legal retirement age are entitled to a special pension at the end of their terms, the Senate decided. The plenum of the upper chamber passed the law on local representatives-elect by 86 votes to one, with the Liberal MPs leaving the hall before the vote. Liberal senator Mircea Dobra warned the draft had not been assumed either by the initiators or the Government, the Executive’s representative arguing the institutions had not stated any opinion yet.
The allowance for the mandatory retirement also refers to the local leaders that used to be mayors, deputy mayors or county council leaders before the current law coming into force.

There are at least 16,300 potential beneficiaries of the law, the 2016 budgetary effort amounting thus to RON 469 million. “Following the taxation of these amounts, the added resulting budget deficit is of more than RON 395 million, moving the budget deficit above the limit approved by Parliament, and tends to worsen the stability of the fiscal budget framework. In addition, given that the law is retroactive, the number of beneficiaries may be much higher, and also the impact on the state budget,” according to the Government.
The draft on the local leaders’ special pensions was voted one week after the Parliament also passed a controversial law regarding special pensions for lawmakers.

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