Recalculation of first 25,000 special military pensions sees Government spending up instead of down
By recalculating the 25,000 military pensions, the Government
spends 8% more than it did before the recalculation, according to
ZF calculations.
So, whilst before the recalculation of the 25,000 military pensions
the Government spent 49.08 million RON per month (11.7 million
euros/month), and after the recalculation spending amounted to
52.83 million RON (12.6 million euros) per month for the payment of
the same pensions, what results is an 8% increase.
Overall, considering that the 25,000 military pensioners account
for a third of the 76,000 pensioners whose military pensions need
to be recalculated - considering the value of the same average
pension - the Government's overall annual spending would amount to
1.94 billion RON (461 million euros), up by nearly 150 million RON
(35.7 million euros) on what the Government spent prior to the
recalculation (1.8 billion RON, i.e. 428 million euros).
Therefore, the Government will pay nearly 150 million RON more in
total after the recalculation of the special pensions, which are
separate from those of the 76,000 pensioners of the Interior
Ministry, who include pensioners from secret services.
"When the Government first discussed the recalculation of military
pensions, the most important aspect was to follow the principle of
contribution. I don't know if savings for the state budget were
targeted, I don't recall figures regarding the budgetary impact of
this measure," said deputy Marian Sârbu, who was labour minister
from the PSD (Social Democratic Party) in 2009.