Pension Indexation Rate for April 1 Remains Uncertain
Despite previous announcements by authorities of a 6 percent indexation, the pension indexation rate for April 1 remains uncertain.
The Minister of Labor and Social Protection, Alexei Buzu, announces that it could be as low as 4.2 percent. However, Prime Minister Dorin Recean states that pensions will increase, but the exact figure will be known by the end of February.
Invited to a private television station, the Minister of Labor and Social Protection, Alexei Buzu, declared that, from April 1, pensions are to be indexed by 4.2 percent, the current inflation rate as stipulated by legislation.
"Data regarding inflation shows we have a 4.2 percent inflation rate, so this will also be the indexation rate for pensions this year," stated Alexei Buzu.
Yet, in December of last year, Buzu declared that the indexation rate would be 6 percent. "The law provides for pension indexation at the inflation rate. Based on our current forecasts, the inflation rate will be 6 percent, therefore the pension indexation rate will be 6 percent."
In contrast, Prime Minister Dorin Recean has offered assurances that pensions will increase, without specifying the exact percentage. Recean mentioned that increases will be made according to the needs of each pensioner.
"These will certainly increase. We will announce the exact growth figure later in February. We are trying to tailor this increase based on need, which is why I say the government will come with the exact figure at the end of February," Dorin Recean noted at a government meeting.
Currently, there are over 530,000 pensioners in the country who receive old-age pensions.
Translation by Iurie Tataru
