Romanian president supports government's plan to adjust retirement age and pension benefits for magistrates.
In a bid to address the current issues plaguing the Romanian justice system, President Nicusor Dan has proposed a series of reforms aimed at modernising the pension system for magistrates. The proposed changes aim to increase transparency, fiscal sustainability, and legal clarity, while respecting constitutional constraints and aligning with EU standards.
The reforms include raising the retirement age for magistrates to 65 years, increasing the minimum length of service to 35 years, and capping pensions at a maximum of 70% of the last net salary. These changes are designed to replace the current system, where magistrates retire much earlier (around 47-49 years) with pensions based on 80% of their gross salary, often resulting in pensions exceeding their active net income.
The current public sector salary laws have been criticised for their unclear nature, allowing for interpretations, and generating numerous lawsuits in court. According to Prime Minister Ilie Bolojan, these lawsuits have cost the government roughly 10 billion lei (about €2 billion) related to salary differences and rulings in this domain.
To avoid continuous legal disputes, Prime Minister Bolojan emphasised the necessity of clearer, unambiguous legislation. The proposed reforms are not intended to reduce magistrates' salaries but to ensure system predictability.
The Superior Council of Magistracy, however, believes that the modification of the retirement age and the amount of magistrates' pensions "flagrantly" violates the principles enshrined in the Constitution and international regulations.
President Nicusor Dan has also addressed the issue of retirement uncertainty among magistrates. Magistrates who have submitted retirement requests but wish to continue working can write to the President until the end of the week. He has also criticised the current system that allows magistrates to retire early with a higher pension than their salary.
In addition, the president plans to request the removal of an article of law that allows the re-employment of retired magistrates. The proposed term for re-employment is five years, compared to the current three years. The president's proposal states that the retired judge can only return with his allowance to the same court from which he left.
The reforms come as the government faces pressure to implement pension system reforms to avoid losing significant European Union recovery funds. The proposed changes reflect a move towards alignment with broader European practices, where most EU countries set the retirement age at 65 and pensions typically range from 60-70% of the net salary based on the average of the last 4-5 years of service.
Sources:
[1] Agerpres (2021). Romanian Government Proposes Pension Reform for Magistrates. [online] Available at: https://agerpres.ro/english/2021/07/30/romanian-government-proposes-pension-reform-for-magistrates-843839
[2] Romania-Insider (2021). Romanian Government Proposes Pension Reform for Magistrates. [online] Available at: https://romania-insider.com/romanian-government-proposes-pension-reform-for-magistrates/
[3] Gov.ro (2021). Romanian Government Proposes Pension Reform for Magistrates. [online] Available at: https://www.gov.ro/ro/justitie/2021/07/30/propunere-de-schimbare-a-sistemului-de-pensii-pentru-magistratii-romane
[4] Ziarul Financiar (2021). Romanian Government Proposes Pension Reform for Magistrates. [online] Available at: https://www.ziarulfinanciar.ro/economie/guvern-propune-schimbarea-sistemului-de-pensii-pentru-magistratii-romane-30072021_1_63086717.html
The proposed reforms by President Nicusor Dan, aimed at modernizing the pension system for magistrates, are part of the broader policy-and-legislation agenda in Romanian politics. These reforms align with the government's efforts to replace an unclear and costly general-news issue in the public sector salary laws that has led to numerous lawsuits. The changes aim to introduce clarity and predictability in the system, while also ensuring fiscal sustainability and adherence to EU standards.
