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Moldovan cabinet approves pensions' indexation, way of calculation

18:11 | 15.03.2017 Category: Official

Chisinau, 15 March /MOLDPRES/ – The Cabinet of Ministers approved in its meeting today, the indexation of pensions, the mechanism for calculating and way of confirming the contribution period for pension determining.

According to the government’s communication and protocol department, the new provisions relate not only to the increase of annual indexation of pensions, but also by establishing valuing insured income, with recalculation of pensions and increase of the minimum pension level.

However, from 01 April 2017, the pensions will be established under the new formula, providing interdependence between social insurance contributions and pension amount. The revenue used in the new formula will be valued and the pensions, established in 2001 – 2008, will be recalculated for 80 thousand beneficiaries. The new methodology for calculating pensions for old age will provide an opportunity to ensure pensions increase by approximately 45 per cent for 2017.

Currently, the minimum pension is 961 lei, and after indexing it will be 1,026 lei. At the same time, the minimum pension for people who worked in agriculture will increase by about 21 per cent.

The government also approved the indexation of pensions paid from the state social insurance budget by 6.8 per cent. Thus, old age pension will increase by an average by 104.87 lei, lei pensions on disability by 75.28 and pension allocated to participants in liquidation of AES Chernobyl disaster consequences by 193.03 lei. Totally, there will be indexed pensions paid from the social security budget of 700 thousand beneficiaries.

The concept of reform of the pension system provides, by the way, reduction of inequities in the pension system and adhering to the principles of social insurance, creation of an attractive pension scheme with an enhanced level of benefits, ensuring transparent governance and capacities of strengthened management of the pension system.