Social law

President Klaus Iohannis on Monday signed a decree promulgating the Law on the Public Pension System adopted by the Chamber of Deputies on June 26, in a re-examined form adjusted for a ruling of the Constitutional Court (CCR).

From 1 July the minimum retirement and old age pension was raised to BGN 219, writes NOVA TV. 

More than 2,130,000 pensioners will receive an increase of 5.7 percent on their pensions from today - 1 July. The change is in compliance with the Social Insurance Code provided for by all pension payments granted starting with 31 December 2018. This was announced by the National Social Security Institute.

The mandatory private pension funds had assets worth more than 53.41 billion lei, on May 31, 2019, up 24.18 per cent against the same month a year before, according to data provided by the Financial Supervisory Authority (ASF). Government bonds hold the highest share among these assets, of 31.58 billion lei, 59.14 per cent respectively.

More than 2 million and 130,000 pensioners will receive higher pensions from next month.

The increase is 5.7%. About BGN 277 million are provided for it.

The minimum retirement pension will increase by about 12% and the old-age pension will be around 7 BGN.

National Liberal Party (PNL) chairman Ludovic Orban said on Wednesday evening that the Liberals support the increase in pensions, but based on a "stable, predictable" mechanism, on "objective elements". "We attacked the Pension Law at the Constitutional Court (CCR) and the CCR proved us right, declaring the Pension Law unconstitutional.

Sfantu Gheorghe mayor Antal Arpad from the Hungarian Democratic Union of Romania (UDMR) said on Thursday that he is no supporter of special pensions and that in his view, the contribution to the pension fund should be the only criterion that should be considered when the pension amount is determined. "I believe that in a normal country the institution of special pensions does not exist.

About 1,500 people so far have stated that they wish their pensions to be calculated according to the old formula, which includes the 3 best years of their insurance before 1997.

Pensioners remain in the dark about the recalculation of their pensions according to the 2016 law, as they have not yet been notified by the Labor and Social Security Ministry about their so-called personal difference - i.e. the part of their pension that is likely to be cut.

The Government has decided a new way of calculating the minimum share capital of private pension funds, Minister of Public Finance Eugen Teodorovici announced on Thursday.