STANDING COMMITTEE APPROVES ADDITIONAL PENSION INDEXATION

The parliamentary Standing Committee on Economy, Budget and Finance approved on Wednesday the draft law that implies additional indexation of pensions on October 1, 2020.

Presidential Advisor for Social Issues Viorica Dumbraveanu said that it is proposed to index pensions that are lower than the subsistence wage [1891 lei in 2018]. The indexation factor will be calculated on the basis of the consumption price growth rates over 3 years.

"There are around 400 thousand people in the system who are receiving such pensions. It is important that the indexation of pensions will demand revision of the minimal pension size twice a year in order to avoid the situation, when a person who reaches retirement age starts receiving pension lower than the one indexed in October", she stressed.

According to the advisor, the indexation of the minimal pension in April and October will lead to growth of social payments, which are provided to persons with disabilities and those disabled since childhood, as well as to pensioners who do not meet requirements.

As Infotag has already reported, the initiative to index pensions twice a year but not just once came from President Igor Dodon.