The Constitutional Court (CCR) ruled on Wednesday, February 18, that the law reforming magistrates’ pensions is constitutional, rejecting a challenge filed by the High Court of Cassation and Justice, Biziday.ro reported. The legislation raises the retirement age to 65 over a 15-year transition period and reduces pensions to a maximum of 70% of the last net salary.

The ruling clears the bill for promulgation after four months of delays, five postponements, and two government confidence procedures led by prime minister Ilie Bolojan. The approved version differs from an earlier draft rejected by the court by extending the transition period from 10 to 15 years.

Magistrates will still be able to retire early after 35 years of service, though a yearly penalty of 2% will apply until they reach the standard retirement age, according to Biziday.ro.

The High Court had argued the provisions could breach European Union law and lead to discriminatory treatment compared with other categories receiving so-called special pensions, and requested a referral to the EU Court of Justice. The Constitutional Court postponed its decision on February 11 to review additional documents before issuing Wednesday’s ruling.

In a first reaction, prime minister Ilie Bolojan welcomed the decision, saying it confirmed the government’s approach and marked “a major step toward fairness,” Agerpres reported. The government also said it would now take steps to recover funds linked to the reform under Romania’s EU Recovery and Resilience Plan (PNRR).

The adoption of the draft law is mandatory to unlock EUR 231 million from the Recovery and Resilience Plan, according to the government.

President Nicușor Dan also reacted to news, saying, "I welcome the Constitutional Court’s decision on the reform of magistrates’ pensions. Recalibrating the way these pensions are calculated is a gesture of fairness, expected by our society. I assure all magistrates that their work is respected and their importance within the state’s structure is fully recognized."

irina.marica@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)