The Romanian Constitutional Court (CCR) has put off by a weekthe verdict on the uniform pension law, following the claims ofunconstitutionality submitted by opposition parties PNL (NationalLiberal Party) and PSD (Social Democratic Party) - adding to thetension surrounding the most controversial law passed by Parliamentthis legislative session.
Apart from the visible aspects such as the hypothetical votingfraud when the law was passed in the Chamber of Deputies or thetrade unions' complaints about the retirement age being raised,with everybody retiring at 65, some aspects of the law areextremely relevant for the future pensioners.
The first one, a little discussed issue, is the fact that thefuture pensions will no longer be tied to the gross average salary,based on which the pension point used to be set, and which, byrising, also increased the pension level.
The law sets the pension point at 732.8 RON, with all futurecalculations to start from this. In a first phase, pensions will be100% inflation indexed and 50% indexed by the real value of theincrease in the average salary earnings. After 2020, the value ofthe salary earnings added to the pension will fall to 45%, anddisappear altogether as of 2030.
"This means the deficit of the pension budget will revolvesomewhere between 0.5% and 1%, making the system sustainable," saysMihai Seitan, former labour minister at the time when the lawpassed the parliamentary stages.
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