President Iohannis promulgated the special pensions law

President Klaus Iohannis promulgated the law on special pensions. Taxation of specials increases to 20%, but judges and prosecutors will have their pensions calculated according to the incomes they had at the top of their careers. And their retirement age will reach 60 only in 2063.

The law was adopted this week by Parliament. In plenary, USR leader Cătălin Drula declared that this law is the law to maintain special pensions and that the majority made a mockery of it, being the most defiant form of the project so far.

In response, the liberal Florin Roman accused those from USR of hypocrisy, and the interim president of the Chamber, Alfred Simonis, showed that through this law “these special pensions will be less felt”.

Reform with delayed effect, this is how the new law on special pensions looks like in brief. The most important changes will only apply in 20 or even 40 years, when the retirement age will also increase for special workers to 60 or 65, and their pension will be calculated according to the salaries they had throughout their caree

The reform is a crucial milestone for Romania not to lose money from the National Recovery and Resilience Plan. According to Prime Minister Marcel Ciolacu, if the law had not been adopted by November 1, Romania risked losing 1.4 billion euros.

According to the law, the net amount of the service pension cannot be higher than 100% of the net income had in the last month of activity before the date of retirement.

The amendments to the law on the special pensions of prosecutors and judges did not pass the Constitutional Court. The CCR judges admitted the referral to the High Court of Cassation and Justice (ÎCCJ) in relation to the changes to the law on service pensions.

“The court held that the recalculation of service pensions in payment affects legal security in the non-retroactivity component of the law. Legal security requires and imposes a protection of the guarantees related to the preservation of the right that was acquired by issuing the retirement decision. The Court also observed that the non-contributory part of the service pension can be part of a separate taxation from its contributory part, subject to its application to all categories of service pension beneficiaries, without distinction. The criticized law thus introduces taxation, but does not clearly establish the basis of taxation, which is contrary to the quality requirements of the law”, said Marian Enache, the CCR President.

The president of the CCR also stated that the institution “remembered that taxation cannot have a punitive nature because it practically leads to a rethinking and restructuring.