ZF English

Recalculation of first 25,000 special military pensions sees Government spending up instead of down

20.01.2011, 23:49 12

By recalculating the 25,000 military pensions, the Governmentspends 8% more than it did before the recalculation, according toZF calculations.
So, whilst before the recalculation of the 25,000 military pensionsthe Government spent 49.08 million RON per month (11.7 millioneuros/month), and after the recalculation spending amounted to52.83 million RON (12.6 million euros) per month for the payment ofthe same pensions, what results is an 8% increase.
Overall, considering that the 25,000 military pensioners accountfor a third of the 76,000 pensioners whose military pensions needto be recalculated - considering the value of the same averagepension - the Government's overall annual spending would amount to1.94 billion RON (461 million euros), up by nearly 150 million RON(35.7 million euros) on what the Government spent prior to therecalculation (1.8 billion RON, i.e. 428 million euros).
Therefore, the Government will pay nearly 150 million RON more intotal after the recalculation of the special pensions, which areseparate from those of the 76,000 pensioners of the InteriorMinistry, who include pensioners from secret services.
"When the Government first discussed the recalculation of militarypensions, the most important aspect was to follow the principle ofcontribution. I don't know if savings for the state budget weretargeted, I don't recall figures regarding the budgetary impact ofthis measure," said deputy Marian Sârbu, who was labour ministerfrom the PSD (Social Democratic Party) in 2009.

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