Radio România Internațional

Tag: pension bill

  • The new pension law, under debate

    The new pension law, under debate

    Having the approval of the ruling coalition in Romania made up of the Social Democratic Party – PSD and the Liberal Party – PNL, the new pension draft law has been launched this week for public debate, and the government says it would like it to be adopted in an emergency procedure by November 20. The principles underlying the bill are contribution, stability in the labor field, equity and solidarity, the government representatives say, who pointed out that pensions will increase twice next year for most of the people who have ended their activity. Thus, from January 1, all pensions will be increased by 13.8%, according to the average annual inflation rate, with a second increase most likely to take place on September 1. Then, growth will be differentiated in order to eliminate inequities, the PM Marcel Ciolacu said.



    At the same time, in the next six months, all pensions will be recalculated according to a new formula based on the number of points achieved by each beneficiary, according to the contribution principle, a mechanism for indexing pensions that is clear and correlated with economic realities. Following the recalculation, a large part of pensioners will benefit from higher pensions and no pension will decrease, the government representatives have assured. All the projection is for the future, it is out of the question that anyone loses any money after the recalculation, says the prime minister.



    According to the new pension law, the minimum contribution period will be 15 years and the maximum period 35 years. Stability in work will be additionally rewarded, i.e. the contribution period achieved over 25 years will be adjusted with additional points for seniority, and the non-permanent contributory increments will be taken into consideration when calculating the pension. Also, women with several children will benefit from a reduction of the standard retirement age of three years and six months. As of 2035, the standard retirement age will be 65 for both men and women, and to achieve this measure, the standard retirement ages will be gradually increased.



    Early retirement can be requested at most 5 years before reaching the standard retirement age, by people who have completed the full contribution period. At the same time, the persons insured in the public pension system who meet the conditions for registration for retirement can opt for maintaining the job, annually, with the consent of the employer, until reaching the age of 70. As to pension expenses, the focus will be on maintaining them as a share in the total value of the GDP, the government says, so that the medium and long-term sustainability indicator should not indicate a high risk. The ruling coalition wants the new pension law to take effect on January 1, 2024, so the bill might be approved next week by the executive and then sent to parliament for debate and adoption. (LS)

  • The Week in Review 26.11 – 01.12.2018

    The Week in Review 26.11 – 01.12.2018


    Parliament marks the Centennial of the Great Union



    The Romanian Parliament on Wednesday held a special session dedicated to the celebration, on December 1, of the Great Union that created the Romanian state. President Klaus Iohannis said that, 100 years from the event, politicians irrespective of party or doctrine should say whether they want to continue to promise a lot and deliver little, or if they have the daring and sense of responsibility to build a foundation for Romania in its second century. Klaus Iohannis said that Romanians have high hopes for the future of their country, and rightful expectations from its leaders. PM Viorica Dancila made a call to unity among the political class. Among the guests of honor at the solemn session in Romanias Parliament were invited former presidents Emil Constantinescu and Traian Basescu, as well as members of the government and diplomats accredited to Romania. Also present were the president of the Romanian Academy, the National Bank Governor, the president of the National Association of War Veterans, the Patriarch of the Romanian Orthodox Church, as well as representatives of the Roman Catholic and Greek Catholic churches.



    Romanians around the world celebrate national day



    Many ceremonies are being held these days in the country and abroad to celebrate the national day of Romania, December 1st, which this year marks 100 years since the creation of the Romanian nation state. Bucharest was host to the biggest parade since 1990. Parading under the Triumphal Arch were 4,000 soldiers, with over 200 vehicles. 500 enlisted men from 22 allied and partner countries marched alongside Romanian troops. A military parade was held in Alba Iulia, the city considered to be the place where the Great Union was put into being. At that event, 1,600 soldiers marched, with 150 vehicles and 23 aircraft. Iasi was declared by Parliament a historical capital of Romania, and Alba Iulia was declared Capital of the Great Union in recognition of its contribution. The national day was also celebrated in theater of operations where Romanian soldiers are deployed, and in countries all over the world, with cultural events that highlight Romanias role in history, organized by Romanian Cultural Institute offices, in collaboration with Romanias diplomatic missions. The European Parliament held an exhibition on the Romanians who have changed the world. December 1 became National Day after the anti-communist revolution of 1989. It commemorates the day in 1918, at the end of WWI, when the Romanian nation state united, gathering together all the provinces with a majority Romanian population formerly within multinational empires.



    The France-Romania Season starts in Paris



    The France – Romania Cultural Season started in Paris with an event attended by presidents Klaus Iohannis and Emmanuel Macron. The event is included in the roadmap of the strategic bilateral agreement, including hundreds of projects to run until July 14, 2019. This covers cultural events, as well as events in the areas of education, innovation, economy, business, gastronomy, tourism, sports, as well as local cooperation, with the purpose of strengthening the ties between the two countries. Klaus Iohannis emphasized the fact that Romania is scheduled to take over the EU Council presidency on January 1st 2019. He said that Romania and France would celebrate European Union values in an ample common cultural project. French President Emmanuel Macron said that the cultural season has a symbolic nature, and is the first one organized by France alongside an EU member country, considering that culture cements Europe. The two presidents have signed a political statement to renew the strategic partnership. Iohannis also met in Paris representatives of the Romanian diaspora in France, urging them to stay united and stay involved in Romanias development.



    Senate passes pension bill in Bucharest



    The Romanian Senate has passed a pension bill tabled by the majority party. It provides for a gradual increase in pensions for the next three years, reducing the retirement age for the so-called first and second labor groups, and taking into consideration higher education years when calculating seniority. The minimum employment period in order to qualify for collecting retirement benefits is still 15 years. The Democratic Union of Hungarians in Romania proposed an amendment, accepted by the majority, to provide the possibility for mothers of three or more children to retire early. The opposition has criticized the bill. The National Liberal Party voted against it, while Save Romania Union abstained. Senators in the majority said that the bill answers demands from associations representing retirees, and corrects inequities in the system. The newly appointed minister of labor, Marius Budai, said that the additional costs the bill incurs can be covered. The bill now goes to the Chamber of Deputies, which will provide the decisive vote in December.



    Cold wave hits Romania



    A yellow-code alert has been issued for snow and strong wind in Bucharest and almost half of the counties, mostly in the south and southeast. In places, winds blew as hard as 75 km/h, with visibility in places as low as 100 meters. Road traffic has been disrupted in the affected area, with delays for railway traffic and airlines. Ports on the Romanian side of the Black Sea are inoperable. Even after the warning expires, very cold weather is expected to continue all over the country.

  • October 10, 2018

    October 10, 2018

    BILL – The Romanian Government
    is today debating the public pensions system bill, endorsed by the Finance
    Ministry. The document is under public debate since August and has been
    modified following talks with the main stakeholders. The new law is aimed at
    increasing pensions and eliminating inequities in the system. Among other
    things, the bill stipulates that pensions will be paid only in keeping with
    each individual’s contribution, and those whose seniority is the same, but retired
    in different moments in time, will get the same amount. The future law would be
    implemented in stages until 2021, benefiting more than 5 million Romanian
    pensioners. Some 150 pensioner representatives from across the country have
    protested today in front of the Government building, claiming an increase in
    the pension point up to 45% of the average gross salary as of 2021.






    MOTION – The
    simple motion filed by the opposition National Liberal Party and Save Romania
    Union against the Economy Minister Danut Andrusca has been dismissed today
    by the Chamber of Deputies, following Monday’s debates. The National Liberal
    Party claims that the minister’s incompetence, proven by the evolution of the
    main economic indicators, is bringing Romania to bankruptcy. According to the
    Liberals, in nine months of office, Danut Andrusca has made no progress in
    solving the main problems of his ministry, carrying out an activity described
    as ‘catastrophic’. Also on Monday, the Liberals filed a simple motion against
    the Culture Minister George Ivascu, whom they accuse of failing to properly manage
    the celebrations due on December 1st 2018, marking 100 years since
    the Great Union.






    INFLATION – According
    to the National Statistics Institute, in Romania, the annual inflation rate
    reported in September dropped to 5.03% from 5.1% in August, against the
    background of prices going up. This year, the highest rate was registered in
    May: 5.41%. This is the highest level since February 2013, when the increase in
    consumption prices was 5.65%. In early August, the Romanian Central Bank
    revised downwards to 3.5% the inflation forecast for the end of this year. We
    recall that in August Romania registered an annual inflation rate of 4.7%,
    the highest in the whole of the EU, for
    the seventh consecutive month.




    DEBATE – On October 23rd
    in Strasbourg, Romania’s president Klaus Iohannis will take part in a debate on
    the future of Europe, hosted by the European Parliament. The Romanian
    president’s intervention is one in a string of events of this type organized between
    heads of state and government and MEPs, concerning the future of the European
    Union. Among those who have participated in the debates are the Irish Prime
    Minister Leo Varadkar on January 17th, the Croat and Portuguese
    premiers Andrej Plenkovic and Antonio Costa on February 6th and
    March 14th respectively, and the French president Emmanuel Macron on
    April 17th.






    ASSASSINATION -
    A new suspect has been arrested near the city of Hamburg in relation to the
    killing of the Bulgarian journalist Viktoria Marinova. The suspect, described
    as a young Bulgarian aged 20-30, was detained in Germany, where he is living
    with his mother, after leaving Bulgaria on Sunday. According to the Bulgarian
    media, the DNA found at the crime scene is identical to that of the young man. Previously,
    the police had detained an ethnic Ukrainian from the Republic of Moldova, who
    also has Romanian citizenship, but
    released him for lack of evidence. The dead body of the Bulgarian journalist,
    aged 30, was found on Saturday in a park
    on the bank of the River Danube, in Ruse. She had been raped and then killed. On her last show on
    September 30th on a TV station in Ruse, Viktoria Marinova had held a
    talk with two journalists, Dimitar Stoianov from Bulgaria and Atiila Biro from
    Romania, who are conducting an investigation into cases of fraud with EU
    money, involving business people and
    officials. Investigators are trying to find the motive for the assassination, without
    excluding a connection with the journalist’s professional activity.






    SPORT – Romanian athletes have
    won another three medals – one gold, one silver and one bronze – at the Youth
    Olympic Games in Buenos Aires. The gold medal was won by the female weightlifter
    Sabina Baltag, in the 53 kg category, with a total of 177 kg. Florin Arteni -
    Fintinariu and Alexandru Laurentiu won silver in the male canoe double. Tabita
    Maftei and Alina Maria Beletchi won
    bronze in the two women’s canoe event. In the rankings by medals, Romania ranks
    5th, on a par with Colombia, each with 2 gold medals, 2 silver medals and 2
    bronze. Romania’s youth team is made up of 34 athletes, 21 women and 13 men,
    competing in 14 events.









  • August 10, 2018 UPDATE

    August 10, 2018 UPDATE

    PROTEST – Some 100,000 people on Friday protested in front of the Government building in Bucharest, joining in the rally of Romanians living in the Diaspora. Protesters called for the demise of the Government and early elections. Violent clashes have been reported between protesters and gendarmes. The riot police used tear gas and water cannons to disperse the crowds. The Police said groups of instigators infiltrated the crowds in front of the Government building who assaulted riot police officers. Hundreds of people required medical care. The authorities prepared for a large number of participants in the event, and have deployed an appropriate security detail to ensure public order. The gendarmes urged protesters to refrain from any acts of violence. Similar actions on a large scale in solidarity with the rally in Bucharest were held in Brasov, Sibiu, Iasi, Cluj-Napoca and Baia Mare. In a message on social media, President Klaus Iohannis has condemned the riot polices “disproportionate use of force on Friday and called on Interior Minister Carmen Dan to provide an immediate explanation for her management of the situation.



    PENSIONS – Romanian Labor Minister Lia Olguta Vasilescu presented publicly the new pension bill in the public sector. The document was published on Thursday on the ministry website, announcing higher pensions and the elimination of inequities in the system. It also provides for pensions to be paid out function of individual contributions. It also states that people who have worked the same amount of time but retired at different times receive the same amount in retirement benefits. The pension reference point is supposed to be raised incrementally by 70% until 2021 up from 1,100 lei as it is at present. The bill is supposed to be submitted to Parliament for debate next month, enabling it to come into effect, if voted on 1 January 2019.



    APPLICATIONS – The Justice Ministry on Friday launched the procedure for appointing the new Romanian judge at the European Union Court of Law. Applications must be submitted until August 24. According to the ministry, applicants must also include an affidavit showing they never worked as agents or informers of the political police and are not working as undercover agents of intelligence services. Accepted applications will be followed by an interview before the Committee presided by the Justice Minister over September 11-12. Romania is one of the nine member states designated to appoint an additional judge at the European Union Court of Law. Member States are invited to make their proposals for the seats left vacant before October 1, 2018. The nine judges will start their term in office on September 1, 2019.



    REACTION – The Romanian Foreign Ministry has expressed its deep concern with the escalation of violence in Gaza on the Israeli border. The Foreign Ministry calls on all parties involved to prevent the situation from further escalating. At the same time, the Ministry has expressed support for international efforts to bring all hostilities to a halt. Over the last few days the Israeli army has launched air strikes on 150 targets in Gaza in reaction to Gazas missile attack on Israel. Several people died and scores were wounded in the conflict.



    AGRICULTURE – Nearly a quarter of Romanias population was employed in agriculture in 2017, placing Romania in top position at EU level, where the agriculture employment average stands at 4.5%, according to data released by Eurostat. Romania has 24% of its population employed in the agriculture sector, followed by Bulgaria with 19%, Greece with 11% and Poland with 10%. As regards employment in the industry sector, last year the Czech Republic had the largest employment share, 36%, followed by Slovakia and Poland, both with 31%, and Romania with 30%.



    SWINE FEVER VIRUS – The number of African swine fever hotbeds in Romania has reached 645, located in eight counties in the northwest and the southeast, the National Health and Food Safety Authority has announced on Friday. Over 83,000 pigs from pig farms and households were slaughtered. Animal owners will be compensated for their losses, as additional funds have been earmarked under the new budget adjustment bill to eradicate the disease. In Giurgiulesti, the Republic of Moldova, an automatic mobile disinfection system was set up, in the context of the disease spreading to neighboring Moldova. The system disinfects all vehicles entering Moldova, both from Romania and Ukraine. Since early 2016, a total of 15 swine fever hotbeds were identified in Moldova.



    (Translated by V. Palcu)

  • August 10, 2018 UPDATE

    August 10, 2018 UPDATE

    PROTEST – Some 100,000 people on Friday protested in front of the Government building in Bucharest, joining in the rally of Romanians living in the Diaspora. Protesters called for the demise of the Government and early elections. Violent clashes have been reported between protesters and gendarmes. The riot police used tear gas and water cannons to disperse the crowds. The Police said groups of instigators infiltrated the crowds in front of the Government building who assaulted riot police officers. Hundreds of people required medical care. The authorities prepared for a large number of participants in the event, and have deployed an appropriate security detail to ensure public order. The gendarmes urged protesters to refrain from any acts of violence. Similar actions on a large scale in solidarity with the rally in Bucharest were held in Brasov, Sibiu, Iasi, Cluj-Napoca and Baia Mare. In a message on social media, President Klaus Iohannis has condemned the riot polices “disproportionate use of force on Friday and called on Interior Minister Carmen Dan to provide an immediate explanation for her management of the situation.



    PENSIONS – Romanian Labor Minister Lia Olguta Vasilescu presented publicly the new pension bill in the public sector. The document was published on Thursday on the ministry website, announcing higher pensions and the elimination of inequities in the system. It also provides for pensions to be paid out function of individual contributions. It also states that people who have worked the same amount of time but retired at different times receive the same amount in retirement benefits. The pension reference point is supposed to be raised incrementally by 70% until 2021 up from 1,100 lei as it is at present. The bill is supposed to be submitted to Parliament for debate next month, enabling it to come into effect, if voted on 1 January 2019.



    APPLICATIONS – The Justice Ministry on Friday launched the procedure for appointing the new Romanian judge at the European Union Court of Law. Applications must be submitted until August 24. According to the ministry, applicants must also include an affidavit showing they never worked as agents or informers of the political police and are not working as undercover agents of intelligence services. Accepted applications will be followed by an interview before the Committee presided by the Justice Minister over September 11-12. Romania is one of the nine member states designated to appoint an additional judge at the European Union Court of Law. Member States are invited to make their proposals for the seats left vacant before October 1, 2018. The nine judges will start their term in office on September 1, 2019.



    REACTION – The Romanian Foreign Ministry has expressed its deep concern with the escalation of violence in Gaza on the Israeli border. The Foreign Ministry calls on all parties involved to prevent the situation from further escalating. At the same time, the Ministry has expressed support for international efforts to bring all hostilities to a halt. Over the last few days the Israeli army has launched air strikes on 150 targets in Gaza in reaction to Gazas missile attack on Israel. Several people died and scores were wounded in the conflict.



    AGRICULTURE – Nearly a quarter of Romanias population was employed in agriculture in 2017, placing Romania in top position at EU level, where the agriculture employment average stands at 4.5%, according to data released by Eurostat. Romania has 24% of its population employed in the agriculture sector, followed by Bulgaria with 19%, Greece with 11% and Poland with 10%. As regards employment in the industry sector, last year the Czech Republic had the largest employment share, 36%, followed by Slovakia and Poland, both with 31%, and Romania with 30%.



    SWINE FEVER VIRUS – The number of African swine fever hotbeds in Romania has reached 645, located in eight counties in the northwest and the southeast, the National Health and Food Safety Authority has announced on Friday. Over 83,000 pigs from pig farms and households were slaughtered. Animal owners will be compensated for their losses, as additional funds have been earmarked under the new budget adjustment bill to eradicate the disease. In Giurgiulesti, the Republic of Moldova, an automatic mobile disinfection system was set up, in the context of the disease spreading to neighboring Moldova. The system disinfects all vehicles entering Moldova, both from Romania and Ukraine. Since early 2016, a total of 15 swine fever hotbeds were identified in Moldova.



    (Translated by V. Palcu)

  • A New Pension Bill in Romania

    A New Pension Bill in Romania


    In terms of purchasing power, the average salary in Romania accounts for approximately two thirds of the European average, but the average pension is way smaller, namely one third of the average in Europe. According to Adrian Mitroi, a professor with the Academy of Economic Studies in Bucharest, quoted by Agerpres news agency, a modern society must ensure a proper standard of living also for those who are retired. Despite lots of counterarguments, in a normal economy, the specialist says, pensions must increase, just like salaries.



    Against this background, the left-wing Government formed by the Social Democratic Party and the Alliance of Liberals and Democrats has drafted a new pension law for the public sector, which, if adopted, would come into force in stages, until 2021. Published on the Labour Ministrys website, the new pension bill stipulates higher pensions. But, most importantly, the new law is aimed at eliminating inequities that exist in the system. There are many citizens who have contributed equally to the pension fund, but they receive different amounts of money. Also, there are big gaps between men and women.



    That is why, under the new law, pensions will be paid only depending on each individuals contribution, and those who have the same seniority, but retired at different moments in time, will get the same amount. The value of the pension point would grow by 70% until 2021, from approximately 234 Euro as it is today. The bill also includes provisions for those who have contributed a minimum of 15 years; they will be able to chose between the minimum guaranteed pension, calculated in keeping with their contribution, and a social benefit.



    The women who have worked 15 years and have given birth to three children, whom they have raised until the age of 16, are entitled to a reduction in the retirement age of 6 years. Also, mothers with more than three children will benefit for another one year reduction for each child. Another important provision is that concerning citizens who have masters and PhD degrees, as this will too add money to their pensions.



    The Government has stated that no pension will drop, even if, after recalculation, the amount would be smaller. Debates in Parliament are due to start next month, for the law to come into force on January 1st 2019, which would mean that some 5 million pensioners would receive higher pensions. Until then, the bill will be under public debate for 30 days, and suggestions can be submitted to the Labour Ministry by August 18th.



    However, trust in the pension system alone, no matter how generous and fair that may be, is not enough. Specialists believe that any active person should take time and think in advance of what they can do in order to ensure a higher purchasing power for themselves and to protect their assets and incomes, so that they can benefit from a decent standard of living even whey they retire. So, a public pension should ideally be complemented by other financial alternatives.