Romanian Fiscal Council: Special Pensions Increased By 30% After Recalculation

According to the Council, recalculating special pensions for 159.000 retired military staff and police officers increased pension expenses by about RON1 billion per year.

Following recalculation, average monthly special pension increased from RON1,755 (the level used to set the social security budget for 2011) to RON2,289 in 2012 (which translates into an average increase of 30.4%), said the Council.

According to the explanatory note of the draft 2012 social security budget, when determining the funds needed to pay pensions, authorities considered 4.76 million pensioners paid through the National Public Pension House, with an average monthly pension of RON747, and 159,000 pensioners paid through the Defense Ministry, the Interior Ministry and the Romanian Intelligence Service, with an average monthly pension of RON2,289.

The funds earmarked to pay public system pensions in 2012 amount to RON47.07billion, or 8.1% of the gross domestic product.

The Fiscal Council is an independent authority, made up of five members specializing in macroeconomic policies.

(EUR1=RON4.3620)

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