Romanian Constitutional Court sends law lowering special pensions back to Parliament

The Constitutional Court of Romania discussed on Wednesday, August 2, the changes made in Parliament to the Law on special pensions, deciding to return it to the legislative for modifications.

On June 29, the High Court of Cassation and Justice referred the Law amending and supplementing certain normative acts in the field of service pensions, as well as the normative act on raising the retirement age, to the Constitutional Court.

The project in question brought changes to the special pensions for magistrates, military personnel, diplomats, parliamentary officials, Court of Accounts staff, and aviation personnel. The magistrates argued that the changes "violate the independence of justice and the principle of separation of powers in the state."

The normative acts aimed to align the minimum contribution period with that applied in the public pension system and prohibited adding together pensions and salaries in the public sector, along with other changes. According to the law in question, prosecutors and judges will be able to retire until 2028 under the same conditions as before, regardless of age, if they have 25 years of service and receive a pension equivalent to 80% of their gross allowance and bonuses from the last month of activity. Military retirees will also benefit from the same retirement conditions provided by the current laws for the next five years. Additionally, pensions higher than RON 4,000 (EUR 810) will be taxed at 15%.

"The reduction of the [pension] base and other aspects affect the independence of justice. Recalculating the pensions currently being paid infringes on the non-retroactivity component. Taxation cannot have a punitive character. The law will be sent back to Parliament to be brought into line with the decision of the Constitutional Court,” said Marian Enache, the head of the Constitutional Court of Romania, cited by Economedia.

(Photo source: Inquam Photos | Octav Ganea)