Over 200 Romanian Pensioners Picket Govt HQ Displeased With New Pension Law

Pensioners threatened to take legal action against the government unless it talks to them and seeks ways to increase the pension point, an indicator used by authorities to calculate pensions, discard the co-payment system and increase the number of treatment vouchers.

Pensioners complain that they are the most affected by the economic crisis and stressed that the way pensions are calculated in the new draft pension law will only make things worse for them and they will fall into extreme poverty.

On March 10, pensioners affiliated to several union federations submitted to the Senate an amendment to the draft pension law, urging an increase of the pension point to 45% of the average gross salary, and threatened to protest if the normative act becomes law in its current format.

Romanian Pensioners Federation leader Preda Nedelcu said on March 11 that the federation sued the Government and the case will be tried the end of September this year. Pensioners argue that, by the time the case is judged, the draft pension law of which they disapprove will already have been enacted by the Parliament.

Nedelcu also said at the time that pensioners do not agree with paying for medical services and urged the health minister to meet them for talks.

"Over 3 million retirees live on pensions below 1,000 lei (EUR1=RON4.0653), which is not enough for food, medicines, household utilities or clothes," Nedelcu said.

Prime Minister Emil Boc said recently that pensions will not be lowered and stressed the pension point will be calculated to be kept at minimum 40% of the average gross salary and is likely to go up to 45%, depending on financial sources.

Romanian central bank governor Mugur Isarescu said recently the country's public pension system needs reformation because it is currently unsustainable. Isarescu said the pension point cannot be set at 45% of the average gross wage when contributions are of just 37% and the number of retirees is higher than the number of employees contributing to the public pension system.

Labor Minister Mihai Seitan, in turn, said recently the pension budget deficit reached RON1.5 billion in the first two months of 2010, adding, however, there will be no problem in paying pensions this year.

The minister also said the country's public pension system had become unsustainable and ran the risk of posting a deficit of as much as 6% of the country's gross domestic product by 2025, adding the state budget would have to allot EUR2 billion to pay pensions in 2011 if the current pension system is maintained.

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