Social law

Deputy Prime Minister Paul Stanescu considers Private Pensions Pillar II must be optional and the Gov't must explain which are the advantages of this fund, if pensions are higher or lower following contributions to it.

Stanescu reaffirmed that there hasn't been any discussion in the Social Democratic Party (PSD) about suspending Pension Pillar II.

Seven million Romanian contributors have 12.9 percent less in their retirement saving accounts because of the non-observance of the Pillar II contributions increase calendar, which resulted in the loss of both the money promised under law and of the money multiplication effect, argue Romanian Business Leaders (RBL) representatives.

Some 17.3 million or 18.2 percent of older people (aged 65 and above) in the EU remain at risk of poverty or social exclusion, the European Union said in the 2018 Pensions Adequacy Report published on Monday.

The data has not changed since 2013, and this includes significant differences such as women's pensions, which remain 37 percent lower than men's.

Hundreds of thousands of retirees are finding themselves in financial straits due to two- or even three-year delays in the issuing of their pensions, which also raises another obstacle to the already troubled fourth bailout review.

A leaked decision by the Council of State contesting several key provisions of reforms to the country's pension system legislated by the leftist-led government, if finalized, could deal a huge blow to the umbrella social security fund (EFKA), throw the national budget off balance and strain ties with the country's creditors as Greece prepares to exit its third international bailout. 

Almost 1.5 million Greeks are trapped in a poverty spiral, with considerably low salaries and pensions, as state statistics reveal.

The crisis has left its indelible mark on the lives of workers, as almost one-third of workers in the private sector are in flexible forms of employment and have to survive on an average gross monthly salary of just 383 euros.

The issue of the first 16,000 pensions based on the provisions of the 2016 law introduced by then social security minister Giorgos Katrougalos confirms that all pensioners can expect an average reduction of between 16 and 25 percent, reaching up to 50 percent in some cases.

The Cabinet is expected to decide whether to extend Easter supplements to pensions.

Will the budget provide BGN 50 million for additional costs of the state social insurance, the Minister of Finance has to say.

Last year, the allowances of 40 leva were paid to just over 1.2 million pensioners with pensions under 314 leva.

Thousands of retirees, upon the recommendation of their lawyers and some media, have been queuing up at branches of the Single Social Security Entity (EFKA) and the auxiliary social security fund (ETEAEP), as well as the State General Accounting Office, to apply for the payment of cash amounts that have been wrongly withheld from their pensions.

The single auxiliary social security fund (ETEAEP) on Friday paid out the first 1,500 auxiliary pensions calculated according to a 2016 law, resulting in their reduction by between 22 and 38 percent compared to previous pensions.

The waiting time at the fund, from the time of retirement to the first payment, exceeds two years.