Moldovan PM expands on advantages of second stage of pension reform

Chisinau, 22 March /MOLDPRES/ – Prime Minister Pavel Filip mentioned, at the beginning of the Government meeting today, the importance of effective informing related to benefits of pension reform implemented in Moldova commencing 01 January 2017, the government’s communication and protocol department has reported.  

The prime minister stressed that the first stage of reform canceled privileges establishing special pensions for certain categories of citizens and introduced mandatory payment of social security contributions for employees of police and force institutions, while establishment of pensions for these ones were transferred to the National Social Insurance House (CNAS). It also established better conditions for recipients of heir pension, a fixed rate of 50 per cent for each heir, regardless of their number.

From 01 April 2017, it will begin the second stage of the reform, which is the most significant. In this context, Pavel Filip said that it required recalculation and indexation of pensions.

Firstly, there will be recalculated pensions of those who retired in 2001 – 2008, a total of 84,000 people. The pensions will increase by up to 37 per cent, therefore being allocated 103 million lei. For those pensioners who retired after 2008, the pension will be recalculated in subsequent years.

The prime minister offered at the opening of the Government meeting some examples that demonstrated the new provisions advantages. A person who retired in 2008 and now receives a pension for the age limit of 1,797 lei will have a pension of 2,437 lei after recalculation from 01 April, which means an increase of pensions by 36 per cent.

A disability pension established in 2007, which is 1,022 lei, due to recalculation will increase by 39 per cent.

Also, on 1 April the pensions will be indexed and an addition of 6.8 per cent to their pensions will benefit more than 700,000 citizens, therefore being allocated 635 million lei.

After indexing, the minimum pension age limit will be 1,026 lei. Some increases ranging between 7.5 per cent and 21 per cent will receive 139,000 pensioners.

Not in the last row, Prime Minister Pavel Filip mentioned that it would be applied more advantageous formula for calculating pensions for those 23,000 people entering the system this year. For a person who has a period of 40 years of employment and a secure income 3,400 lei, according to the old formula, the pension could be established in the amount of 1,802 lei. According to the new formula, however, the pension will be increased by 84 per cent and will amount up to 3,321 lei.

Last year, there were 700,000 pensioners in Moldova and the average pension constituted 1,301 lei.