Romania's labour minister announces agreement with EC on reforming pension system

Romanian labour minister Marius Budai announced that the government reached a compromise with the European Commission (EC) on reforming the system of special pensions that costs the national budget too much and of the public pension as a whole.

Romania must address the special pensions issue to get the current disbursement under the Resilience Facility, while the reforms related to the public pension system must be passed by the end of the year.

"We agreed with the European Commission some principles, such as to meet the [Resilience facility] targets and milestones," minister Budai stated, according to Digi24.

He mentioned the gradual increase of the retirement age to 65 years (a move pertaining to the public pension system, but also the employees subject to special pensions) and calculating the pension based on the entire working period and not allowing pension benefits highest than the net wages received by same recipients.

"The principle of the new laws is that there will be no greater differences [among pension recipients]," minister Budai said. However, the benefits already extended will not be cut.

"Some of the amendments are already ready, and we have presented them to the ruling coalition leaders. We have been instructed that all the amendments be ready by the evening of May 24. On May 25, the ruling coalition is expected to table them in Parliament. On Thursday, all information will go public. I guarantee you that the milestones agreed with the European Commission will be observed," Marius Budai said.

(Photo source: Inquam Photos/Ilona Andrei)