Pension points, the units used to calculate pensions, are to increase by 20 percent as of October 1. The hike was initially scheduled for next year, but both government and opposition voiced strong support to apply the measure sooner, given the general elections scheduled for November 30.
Campeanu said a total RON 1.6 billion (€445 million) will be needed to support pension hikes in 2008.
The Minister added that funds from the state budget are to be paid back from a social security budget subsidy next year. She added that the number of social security taxpayers increased to 5.7 million, from 4.85 million. “I believe this was the impact of Pillar II [pension system], as those who joined a privately managed pension fund are more interested in their subscription, so a portion of companies operating on the black market have come out of the closet,” she explained.
The local pension system divides the mandatory pension contribution into two parts, one administered by the state and the other managed by pension funds, with subscriptions to the latter beginning in September 2007.
Some 5.5 million retired persons are due to have their pensions increased. The average pension amounted to RON 565 (€153.4) in August, and should increase to RON 678 (€184), Campeanu added.
