Boc attacks privileged pension scam

The Government hopes a new law will bring an end to the self-enriching process of a generation of senior public workers, who have benefited from massively inflated pensions

March 2010 - From the Print Edition

Prime Minister Emil Boc says Romania will save between 500 and 800 million Euro per year after its new single pension law enters into force in 2011.
Currently many police officers, MPs, soldiers, diplomats, secret agents, magistrates and pilots benefit from a ‘privileged pension’ much higher than pensions for the rank and file. These select public servants are enriched by a ‘special’ pension fund.
The National Pension House calculates pensions based on the salary contributions made by all working citizens. But the ‘special pensions’ are calculated to be 85 per cent of the last gross salary of the professional. Senior figures in justice, for example, used to play the system by giving themselves an inflated salary for the last year of their working life, in order to benefit from an enormous pension.
Now the controversial ‘special’ pensions will be recalculated on the same formula as that of other working citizens and will be paid by the National Pension House.
This recalculation will affect only ten per cent of the 200,000 beneficiaries, and will target only those who receive over 700 Euro per month, which is over twice Romania’s average salary.
The new pension system aims to promote equality between contributors to the pension system.