Home / POLITICS / Draft pension law: Pension spending will increase by 130pc by 2022 to RON 140bn. Retirement age, unchanged
Gov't comes up with new emergency ordinance draft to amend law on special pensions. Retirement requests keep flooding in

Draft pension law: Pension spending will increase by 130pc by 2022 to RON 140bn. Retirement age, unchanged

The expenditures for pensions to the state social security budget will increase by 11% in 2019 if the new pension law comes into force in the current form, according to the draft bill presented by the Labour Minister, Lia Olguta Vasilescu, Thursday evening. Thus, they will reach RON 67.4 billion in 2019, up from RON 60.7 billion this year.

A much higher advance will be recorded in 2020, rising to RON 83.8 billion, representing a 38% increase against this year’s expenditures. In 2021, the figure will soar to RON 115.7 billion and in 2022 – RON 140.02 billion, i.e. an advance of 130% as compared to 2018, the draft bill reads, according to hotnews.ro.

The Labour Minister said on Friday that the standard retirement age does not change or the minimum contribution timeframe. The project also stipulates that mothers who have raised three children up to 16 years old can retire early.

“The standard retirement age does not change, neither the minimum contribution timeframe, nor the full one. (…) No pension will decrease,” Lia Olguţa Vasilescu said on Friday.

An important change in the new draft bill refers to reducing the retirement age for mothers who meet the following conditions: the women who have reached the minimum contribution period of 15 years and have born and raised three children until they have reached the age of for 16 years, benefit from reducing the retirement age by 6 years, Vasilescu added.

Labour minister also informed that the state will have to supplement the pensions budget by RON 15 billion in 2022, like it did in 2016, considering the pensions are getting double.

At the same time an increase in the revenues to the state social securities is forecast, prompted by the pay rises, by the growing number of employees, but also due to the collect level following the tax burden return. In figures, the returns are estimated to RON 99.7 billion for 2022, compared to RON 58.9 billion in 2018,” minister Vasilescu said.

She added that a major factor still remains the number of employees that exceeded the one of pensioners in 2017 and in 2018.

It remains to be seen whether there will be amendments to the law in Parliament, and then where from will the Ministry of Finance get the amounts needed for these increases, the same source wonders.

The necessary sums are ensured, as of 2020, by transferring money from the state budget, through the budget of the Labour Ministry, for the balancing of the state social insurance budget.

PSD Chairman Liviu Dragnea and Labour Minister Lia Olguta Vasilescu had a row on the new pension law, although they are party colleagues, political sources quoted by adevarul.ro inform. Olguţa Vasilescu allegedly wanted to make public the draft law herself, given that the Ministry of Labour handled the drafting of the bill. On the other side, PSD leader Liviu Dragnea compelled Olguţa Vasilescu to send the draft to the party first of all, and then the law is to be submitted to Parliament on behalf of the party, after one month of public debates. According to the quoted source, the pension law will have a major effect on PSD voters, so both Dragnea and Olguta Vasilescu want to collect the electoral benefits.

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