Tough warning from Labour Minister: Special pensions erode the public pensions system

Special pensions for mayors could lead to collapse the public pension system in Romania. Labour Minister Dragos Pîslaru claims there’s not enough money to support these new benefits approved on Tuesday by Parliament. It is an act of irresponsibility that will bring many negative effects to the Romanian economy, the minister said in a statement on Wednesday.

“Special pensions erode the public pensions system. Special pensions are made on a non-contributory system, which means that the rest of us pay money so that these pensions are paid. Let us accept together that during an election year we should not jump too high with unsustainable measures. It seems incredible to me that in the fourth year of the mandate, we suddenly remembered all these measures regarding allowances and social protection. It’s not possible,” said Dragos Pîslaru.

In his turn, the leader of the National Federation of Pensioners Trade Union, Viorel Copil, argues that “special pensions have no connection with the pensions’ bill, which says that it is a clear principle at the basis, i.e. contribution. These people bring nothing, but want to collect pensions 20 to 30 times higher than the other ones, this is robbery. This is sheer heist.”

The law on special pensions for the local elected, that had been declared unconstitutional by the Romanian Constitutional Court, has been re-examined and voted by the Senate on Tuesday by 101 votes to one and six abstentions after a very short debate.

Early this year, the Constitutional Court of Romania ruled that the law on pensions for mayors, deputy mayors, chairmen and vice-chairmen of county councils is unconstitutional, admitting the government referral. Back then, the constitutional judges argued that the law didn’t stipulate the source of financing, while it is discriminatory at the same time among the categories of local elected, as simple local and county councillors are excluded.