Pensions to increase by 13.8% from January 1, 2024, recalculated under new law in September
Chairman of the National Public Pension House (CNPP) Daniel Baciu said on Friday in Craiova that pensions will be indexed from January 1, 2024 by 13.8%, and in September pensions will be recalculated under a new pension law that is under consideration in the Chamber of Deputies.
According to Baciu, the main changes brought by the new pension law concern the calculation formula for ironing out inequalities in the system related to contribution periods, based on compliance with the principles of contribution, stability, solidarity and equality.
"The public pension law is a law that impacts 5 million pensioners who are on the payroll, as well as on those who will apply for a pension in the public pension system. The main changes of this law as against the legislation in force refer to the guiding principles of contribution, stability, solidarity and equality. The most important modification in the new pension law refers to computation, which is fundamentally different from the current method of computation and based on the total number of points which is multiplied by a fixed value called VPR (reference point value), calculated as a ratio between the value of the pension point against 25, 25 being an average contribution period, between a minimum of 15 years and a maximum of 35," said Baciu.
He added that the new formula try to remove all the inequities that have accumulated in the public pension system, because at the moment there are pensioners having retired at different times under different legislations, and so the total number of points related to different contribution stages existing at that moment in force, resulting in different amounts being paid.
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