A less discussed aspect of the pension recalculation relates to the establishment of the number of points that form the basis of the pension after 1 September.
The recalculation of pensions takes into account the total average salary for each economy, not for each branch
In particular, the new pension law that comes into effect on September 1 will take into account in the decision the number of pension points of the average gross salary per country, not of the average gross salary per branch as it is now.
“This can lead to pension cuts, as the average salary by branch used to be quite different. For example, overall average wages in the textile industry were among the lowest. Among the largest were those in the metallurgical industry“, the secretary general of the National Bank of Romania, Horațiu Raicu, told “Adevărul”, saying that, fortunately, the law provides that no pension will decrease as a result of the recalculation, even if it came to a pension less.
“Adjustments will be made by giving stability points for the working period which is more than 25 years“, he said.
Problems for those who retire from now on
Raicu explained that the real problems will arise regarding those who retire from now on. “They will be greatly affected by the new calculation formula, even if increases or global agreements are taken into account. I say that it will affect them only because of this statement on the point of the pension to the total average wage in the economy, not to the one in the branch. Because you can’t compare the salary of an IT customer to the salary of a cashier in a store, or the total average salary in the economy is the average of the average salary in retail, with oil and gas salary, with administrative and gas salary . with all the other branches in it. Automatically, if you compare the average salary of a cashier with the average salary of the country, the result will be a much lower pension point, below 1, maybe even 0.75 or 0.5. That’s why I say the new calculation formula should apply after 2001“, explained Raicu for “Adevărul”.
There are cases where people cannot rebuild their income: the archives have burned
Another problematic aspect is related to the certificates that confirm the increase, prices, global agreement and other income that were given before 2001 that are not taken into account today. “I remind you that before 1990, the tax was paid by the company on the total wage fund. That is, he had 1,000 employees with an average salary of 3,000 lei, the company paid a tax for all the assets of 3 million lei. The Ministry of Finance should have these numbers, according to each employer, so that certificates are no longer needed. There are cases where archives have burned down, businesses have gone bankrupt, and people no longer have a way to import the evidence. If you cannot rebuild your income before 2001, the state should give you a small additional percentage“, said the secretary general of the National Bank of Romania for “Adevărul”.
What the new pension law says
The new pension law has a very clear calculation formula, which includes the total average salary of the economy from 1938 to 2022, according to the table below:
Calculation formula
The pension calculation formula from September 1, 2024 is:
VPR (reference point value set at 81 lei) x Total number of points.
Total number of points = complementary points + stability points + similar/neutral points
Contribution points are calculated including the monthly score – the number of points achieved by the insured in a month, calculated by calculating the total monthly income or, as the case may be, the monthly insurance income, which was the basis for calculating the social insurance contribution, to the average gross salary used to establish the state’s social insurance budget.
Annual score – the number of points achieved by the insured in a calendar year, obtained by dividing by 12 the sum of the monthly scores
Stability points – additional points awarded to people who have contributed for a period of more than 25 years:
a) 0.50 points for each year achieved over 25 years;
b) 0.75 points for each year achieved over 30 years;
c) a point for each year achieved over 35 years.
2024-08-09 17:02:37
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