A legislative initiative aims to recalibrate service pensions in Romania, marking a significant shift in the country's pension system. This initiative is driven by the main political parties in Parliament, including the PSD, PNL, UDMR, and representatives of national minorities, who seek to establish a more equitable balance between special and contributory pensions. This move aligns with the requirements set forth in the National Recovery and Resilience Plan (PNRR).
Under the proposed bill, a unified calculation formula will be applied, reducing all service pensions to 65% of the calculation base, a noticeable change from the current 80% applicable to certain professions. Additionally, no service pension will exceed the net income from the last month of activity, a measure aimed at curbing excessive pension amounts.
Lawmakers assert that this initiative addresses significant imbalances between service pensions and those of public system contributors. The philosophy behind these changes is clear: no one should be privileged solely based on the position they held, and actual contributions to the pension system must take precedence.
As part of this reform, retirement conditions for magistrates will become stricter. Judges and prosecutors will now need a minimum of 25 years of activity exclusively in legal functions and a minimum age of 48, which will gradually increase to 65 over the next 20 years. This change is set to take effect starting January 1, 2026. Furthermore, individuals retiring from other positions who meet the seniority criteria will receive pensions equivalent to those of an active magistrate with similar rank and experience.
The reform also affects auxiliary staff in courts and prosecutor's offices, including clerks and forensic technicians. They will be subject to the same seniority and capping rules, with their pensions calculated according to the same contributory principles as magistrates.
Moreover, the proposal stipulates that both magistrates-assistants and legal specialists at the Constitutional Court will retire at 65 years, following a pre-established transition calendar. This aims to create a coherent system in which all beneficiary categories adhere to the same essential rules.
Implementing these new measures will require adapting the entire legislative and methodological framework, involving key state institutions. The reform of special pensions is not merely a political promise but also an essential condition for Romania to meet its commitments to the European Union.
The proposed changes are justified as necessary steps to correct the inequities between service pension beneficiaries and those receiving pensions from the public system. The reform is grounded in the principles of equity and contribution, which are foundational to the pension reforms mandated by the PNRR. It is argued that aligning the amounts and retirement conditions for all beneficiary categories will contribute to genuine social justice, reducing the significant disparities between service pensions and those in the contributory system.
In summary, the Romanian Parliament is set to embark on a transformative journey in the realm of service pensions, fostering a fairer and more sustainable system that reflects the contributions of all individuals within the workforce. This reform, while ambitious, aims to create a balanced approach that benefits the broader society and aligns with European standards.
