AMENDMENTS ON DOUBLE INDEXATION ARE UNPROFITABLE FOR PEOPLE WITH SMALL PENSIONS - OPPOSITION

The legislative amendments concerning the double indexation (on April 1 and October 1) are unprofitable for those, who are receiving small pensions, maintain oppositional MPs.

MP Dan Perciun of the Party of Action and Solidarity (PAS) said in the Parliament on Thursday that according to the current provisions, the indexation factor is the average rate of inflation over the last three years (4.8%), while the Government proposes to index 4.8% in April, while in October - to the rate of inflation over the first 6 months of 2020 (3% according to forecasts).

"The salaries which are below the subsistence level (1.7 thousand lei) should be indexed 4.8%. It means 4.8% in April and 4.8% in October. This is what the current legislation provides, covering around 400 thousand pensioners. In the variant the Government is proposing today, the October indexation will be 1.8% lower", the MP said.

According to him, if the elected representatives care about the fact that according to the current norm the second indexation will not cover people with pension above the subsistence level, it is necessary just to cancel this restriction, but not to reduce the indexation factor to 3% from 4.8%.

"If we do not support the Government's proposal today, in 2021 the indexation in April and October will account for 4.7% (average rate over 3 years), while in case amendments are adopted it will be 2.7% in April and 3% in October. In fact, you put your hands in the pockets of the poorest pensioners", Perciun said.

He criticized another change, according to which in case a pensioner dies earlier than 5 years after reaching the pension age, his/her spouse will be receiving the pension instead of the deceased, but only in case the revenues of the widow/widower does not exceed 2.6 thousand lei. The current legislation does not imply such restrictions.