Romanian pensioners ask for 26% hike in pensions and dismantling of Pillar II

The associations of pensioners in Romania asked for a 26% hike in their pensions as of November, as a measure to offset the higher prices, and suggested the transfers to the private pension funds (Pillar II) should be suspended in order to better finance the public pension system, Agerpres reported.

They claim that the 26% pension hike should address past indexations (particularly in 2020) that failed to observe the Pension Law (263/2010). As a result, the average pension shrank by 19% in real terms.

The Government has not decided yet how much the pensions will increase, but prime minister Nicolae Ciuca said that the increase should not endanger the public budget - mentioning an 11% maximum increase as of January. The figure, however, fails to cover the inflation at the end of this year, expected by the International Monetary Fund at 14.9%.

The representative national federations of pensioners' associations organised protests in front of the Government and also at the headquarters of all the prefectures in the country, demanding compliance with the constitutional obligation to increase the standard of living by increasing pensions.

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