Magistrates' pensions should be capped at maximum of 70% of last net salary, says PM Bolojan

A magistrate's pension should be capped at a maximum of 70% of their last net salary, rather than the current 80% of the gross salary, Prime Minister Ilie Bolojan told a press conference held Tuesday at the Victoria Palace, where he presented a series of proposals regarding magistrates' pensions.

"With regard to the pension amount, most countries calculate it based on the salaries received in the final years of service - typically four or five years - and use this average to determine a percentage. In some countries, there is a fully contributory system, with no distinction between magistrates and other civil servants. In most cases, there is a formula that results in a pension of around 60-70% of the net earnings from the last years of work. Based on this principle and in line with both Romanian legislation and Constitutional Court rulings, our proposal is to cap a magistrate's pension at no more than 70% of their last net salary - not 80% of the gross salary as currently applied, which results in pensions exceeding net salary levels. This new threshold would still place us at the higher end of European regulations," explained Prime Minister Ilie Bolojan.

He added that the actual calculation would be based on gross income, using a percentage of 55% of the average gross earnings over the last five years, but with a maximum limit of 70% of the last net salary.

"This is an important adjustment, bringing these pension levels closer to normality - not just in terms of the percentage of net salary, but also regarding the standard retirement age. (...) This afternoon, we will release the full legislative texts so that they can be reviewed. In the coming days, we will hold discussions with all stakeholders in order to present, debate, and gather feedback or suggestions for improvement. Our goal is to finalize the legislative package by next week," Bolojan announced.