Taxing special pensions solves one problem, but there are many other inequities, Prime Minister says

Prime Minister Ludovic Orban said on Wednesday evening that the taxation of special pensions solves one problem, but stressed that a very serious analysis of the pension system is needed, motivating that there are many other inequities.

Orban gave the example of the correction coefficient, which he said generates inequity in the calculation of pensions and argued for the principle of contributory to the calculation of pensions.

“The issue of pensions must be approached with reason, starting from the level of principles. We have always argued that the fundamental principle that (…) must be the basis for calculating pensions is the principle of contributivity. (…) Unfortunately, in our country there has been a whole avalanche of special regulations that have generated pension calculation systems that have violated this principle of contributivity. In my view, the only pensions that can make a compromise from this principle of contributivity are military pensions, because they are in the service of the nation all their lives and the pension is a service pension. We need moderation, we need a very serious analysis, we need to look at the issue of pensions from several perspectives. We need to see what models of pension systems work in the future and clearly, in any projection you have on pensions, you have to think about the long-term pension system, not the moment,” Orban said.

The Prime Minister emphasized that there are two solutions for increasing pensions: increasing the average salary in the economy and increasing the number of employees.

Via Agerpres