Constitutional Court's ruling casts doubt on Romanian Govt.'s ability to cut special pensions

The Romanian Constitutional Court (CCR) deemed as illegal several provisions of the emergency ordinance OUG 130.2021 on the grounds that, by the social security contributions levied on pensions above a certain threshold (RON 4,000 or EUR 800 per month), they inflict the rights of the pension recipients.

No pension already granted can be cut, CCR argues, casting doubts on the Government's attempt to recalculate the magistrates' pensions – a milestone inked in the Relaunch and Resilience National program.

In the reasoning of its decision, the Constitutional Court shows that no pension already granted, irrespective of its nature (based or not on past contributions), can be reduced by applying fees, taxes or contributions, G4media.ro reported.

The CCR ruled, at the request of some pension recipients, on OUG 130.2021. The ruling, however, prompted concerns related to the Court's (potential, so far) opinion on the draft law passed on December 28 by the Government, which aims to recalculate the pensions received by retired magistrates.

"Practically, no pension will exceed the salary received during the active period, and pensions that are already granted will be recalculated to comply with the new principle and to eliminate inequities between beneficiaries that are already in payment and future pensioners," it is stated in a press release from the Ministry of Labour.

(Photo source: Inquam Photos/Octav Ganea)