Preliminary assessment of the third payment request of Romania (2024)

assess whether a pension system is based on the contributory principle. Law No. 282/2023 introduces changes bringing the calculation of special pensions more closely linked to the contributions paid during the working life, and therefore in line with the contributory principle.

Firstly, the reform tightens eligibility conditions for retirement and foresees a gradual increase in the standard or statutory retirement age for all special pensioners, to ultimately align it with that in the general pension system (“seniority in the profession”). The only exception to this rule is special pensioners working in the civil aeronautics sector, who will be able to retire at 52, compared 50 before the reform. Whilst this constitutes a minimal deviation from the requirement of the Council Implementing Decision, this only applies to a very limited number of retirees and seems justified for safety reasons. This minimal deviation does not change the nature of the measure and does not affect the progress towards achieving the reform objective. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled.

Specifically,

• • For judges and prosecutors, see Article I of Law No. 282/2023, setting out a

calendar for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

• • For specialised auxiliary staff of the courts and the prosecutor’s offices attached to

them and staff working within the National Institute of Forensic Expertise, see Article VI of Law No. 282/2023, setting out a calendar for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

• • For Court of Auditors staff, see Article VIII of Law No. 282/2023, setting out a

calendar for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

• • For staff of the Diplomatic and Consular Corps, see Article IX of Law No. 282/2023,

setting out a calendar for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

• • For civil aviation personnel, see Article XI of Law No. 282/2023, setting out a

calendar for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

• • For parliamentary civil servants, see Articles XII and XIII of Law No. 282/2023,

setting out a calendar for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

• • For military pensions, see Article XIV of Law No. 282/2023, setting out a calendar

for a gradual increase in the standard statutory retirement age and tightening eligibility conditions to the special pension regime.

Secondly, for all special pension categories, the Law specifies that the target benefit ratio (or replacement ratio, defined as the ratio of pension benefits to salaries earned during a specific period of an individual’s working life) will be brought in line with the contributory principle and reduced from 80% currently to 65% after the reform. The only exception to this rule is magistrates (reflecting Constitutional Court Decision No. 467/2023), who retain a target benefit ratio of 80%, but applying to the average of gross monthly salary allowances and bonuses during the last 48 months of service prior to the date of retirement (vs. last month of service before the reform). Whilst this constitutes a minimal substantive deviation from the requirement of the Council Implementing Decision, it does not materially affect the progress towards the achievement of the reform. It is considered that this constitutive element of the milestone is satisfactorily fulfilled.

Specifically: