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Minister of Labor and Social Protection Raluca Turcan says that there is a "time bomb" ticking in the Romanian pension system, which is currently running a deficit of 16.7 billion lei, and that there is the risk that the purchasing power of the average pension will very much erode in the future, agerpres reports.
"The current deficit of the pension budget is 16.7 billion lei, which means that substantial amounts are transferred annually from the state budget to the pension budget and if we don't take action, this amount will keep growing. I provided you with these figures to make it clear why we are talking about reform. (...) This reform plan has a technical component through which five million pension files are digitized, millions of data are being transferred from an outdated electronic format into modern digital files. We are also talking about new retirement legislation to do away with these issues," said Raluca Turcan.
According to the Labor Minister, the minimum contribution period for retirement remains 15 years, there will also be the option of early retirement, but this possibility must be accepted as provided for in today's legislation.
