Romania : Pensions Policy Note

This report discusses pension reform which took place in 2001 as a result of deficits which began in the 1990s. Important changes included increasing retirement ages, and the introduction of a new point based benefit formula, taking into account th...

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Main Author:	World Bank
Format:	Policy Note
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	AVERAGE WAGE AVERAGE WAGES BASIC PENSION BENEFIT ADJUSTMENTS BENEFIT FORMULA BENEFIT INDEXATION BENEFIT LEVELS BENEFIT RATES CONTRIBUTION BASE CONTRIBUTION RATE CONTRIBUTION RATES DEFICITS DISABILITY DISABILITY PENSIONS EARLY RETIREMENT EARNING ELDERLY EMPLOYEE EMPLOYMENT EQUAL OPPORTUNITIES EU FINANCES FINANCIAL CRISIS FINANCIAL PERFORMANCE FINANCIAL SUSTAINABILITY FISCAL DEFICIT FORMAL PENSION FORMAL PENSION SYSTEM FUNDED ACCOUNT GENDER GENDER EQUITY GOVERNMENT BUDGETS GROSS REPLACEMENT RATES GROSS WAGE GROSS WAGES HEALTH INSURANCE HIGH WAGE HOME INDIVIDUAL ACCOUNTS INFLATION INFLATION INDEXATION INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION MANAGEMENT INFORMATION SYSTEMS INFORMATION TECHNOLOGY INTERNATIONAL FINANCIAL CRISIS INTERNATIONAL STANDARDS JOBS LABOR COSTS LABOR MARKET LABOR MARKETS LEGISLATION LIFE EXPECTANCY LIVING STANDARDS MALE WORKERS MARKET ECONOMY MINIMUM INCOME PAYROLL TAXES PENSION PENSION ADMINISTRATION PENSION BENEFITS PENSION CONTRIBUTION PENSION COVERAGE PENSION EXPENDITURES PENSION FUND PENSION PLAN PENSION SCHEME PENSION SYSTEM PENSION SYSTEM REFORMS PENSIONERS PENSIONS PRICE INDEXATION PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PILLAR PUBLIC PENSION PUBLIC PENSIONS RATE OF RETURN REAL WAGE REPLACEMENT RATE REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFITS RETIREMENT INCOME REVENUE COLLECTION SOCIAL ASSISTANCE SOCIAL INSURANCE SOCIAL PROTECTION STATE ENTERPRISES TAX UNEMPLOYMENT WAGE GROWTH WILL WORKER WORKER CONTRIBUTIONS WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2008/11/16797513/romania-pensions-policy-note http://hdl.handle.net/10986/18912

id	okr-10986-18912
recordtype	oai_dc
spelling	okr-10986-189122021-04-23T14:03:45Z Romania : Pensions Policy Note World Bank AVERAGE WAGE AVERAGE WAGES BASIC PENSION BENEFIT ADJUSTMENTS BENEFIT FORMULA BENEFIT INDEXATION BENEFIT LEVELS BENEFIT RATES CONTRIBUTION BASE CONTRIBUTION RATE CONTRIBUTION RATES DEFICITS DISABILITY DISABILITY PENSIONS EARLY RETIREMENT EARNING ELDERLY EMPLOYEE EMPLOYMENT EQUAL OPPORTUNITIES EU FINANCES FINANCIAL CRISIS FINANCIAL PERFORMANCE FINANCIAL SUSTAINABILITY FISCAL DEFICIT FORMAL PENSION FORMAL PENSION SYSTEM FUNDED ACCOUNT GENDER GENDER EQUITY GOVERNMENT BUDGETS GROSS REPLACEMENT RATES GROSS WAGE GROSS WAGES HEALTH INSURANCE HIGH WAGE HOME INDIVIDUAL ACCOUNTS INFLATION INFLATION INDEXATION INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION MANAGEMENT INFORMATION SYSTEMS INFORMATION TECHNOLOGY INTERNATIONAL FINANCIAL CRISIS INTERNATIONAL STANDARDS JOBS LABOR COSTS LABOR MARKET LABOR MARKETS LEGISLATION LIFE EXPECTANCY LIVING STANDARDS MALE WORKERS MARKET ECONOMY MINIMUM INCOME PAYROLL TAXES PENSION PENSION ADMINISTRATION PENSION BENEFITS PENSION CONTRIBUTION PENSION COVERAGE PENSION EXPENDITURES PENSION FUND PENSION PLAN PENSION SCHEME PENSION SYSTEM PENSION SYSTEM REFORMS PENSIONERS PENSIONS PRICE INDEXATION PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PILLAR PUBLIC PENSION PUBLIC PENSIONS RATE OF RETURN REAL WAGE REPLACEMENT RATE REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFITS RETIREMENT INCOME REVENUE COLLECTION SOCIAL ASSISTANCE SOCIAL INSURANCE SOCIAL PROTECTION STATE ENTERPRISES TAX UNEMPLOYMENT WAGE GROWTH WILL WORKER WORKER CONTRIBUTIONS WORKERS This report discusses pension reform which took place in 2001 as a result of deficits which began in the 1990s. Important changes included increasing retirement ages, and the introduction of a new point based benefit formula, taking into account the entire work history of the employee, in order to strengthen the link between contributions and benefits. These actions improved pension system financial performance sufficiently to achieve a slight surplus in 2006 and 2007. Despite progress in pension system reforms, the combination of recent increases in benefit levels, the aging of the population, and the absence of a rule for benefit indexation has once again brought the system s long term financial sustainability into question. Some other challenges: high contribution rates spur the growth of informal employment; low retirement ages increase fiscal pressures; and the possibility of generous early retirement provides incentive for workers to leave formal sector employment. The report suggests several policy options to improve the pension situation, the first of which is to increase the retirement age. The report ends with annexes. 2014-07-18T21:49:15Z 2014-07-18T21:49:15Z 2008-11-11 http://documents.worldbank.org/curated/en/2008/11/16797513/romania-pensions-policy-note http://hdl.handle.net/10986/18912 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Europe and Central Asia Romania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AVERAGE WAGE AVERAGE WAGES BASIC PENSION BENEFIT ADJUSTMENTS BENEFIT FORMULA BENEFIT INDEXATION BENEFIT LEVELS BENEFIT RATES CONTRIBUTION BASE CONTRIBUTION RATE CONTRIBUTION RATES DEFICITS DISABILITY DISABILITY PENSIONS EARLY RETIREMENT EARNING ELDERLY EMPLOYEE EMPLOYMENT EQUAL OPPORTUNITIES EU FINANCES FINANCIAL CRISIS FINANCIAL PERFORMANCE FINANCIAL SUSTAINABILITY FISCAL DEFICIT FORMAL PENSION FORMAL PENSION SYSTEM FUNDED ACCOUNT GENDER GENDER EQUITY GOVERNMENT BUDGETS GROSS REPLACEMENT RATES GROSS WAGE GROSS WAGES HEALTH INSURANCE HIGH WAGE HOME INDIVIDUAL ACCOUNTS INFLATION INFLATION INDEXATION INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION MANAGEMENT INFORMATION SYSTEMS INFORMATION TECHNOLOGY INTERNATIONAL FINANCIAL CRISIS INTERNATIONAL STANDARDS JOBS LABOR COSTS LABOR MARKET LABOR MARKETS LEGISLATION LIFE EXPECTANCY LIVING STANDARDS MALE WORKERS MARKET ECONOMY MINIMUM INCOME PAYROLL TAXES PENSION PENSION ADMINISTRATION PENSION BENEFITS PENSION CONTRIBUTION PENSION COVERAGE PENSION EXPENDITURES PENSION FUND PENSION PLAN PENSION SCHEME PENSION SYSTEM PENSION SYSTEM REFORMS PENSIONERS PENSIONS PRICE INDEXATION PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PILLAR PUBLIC PENSION PUBLIC PENSIONS RATE OF RETURN REAL WAGE REPLACEMENT RATE REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFITS RETIREMENT INCOME REVENUE COLLECTION SOCIAL ASSISTANCE SOCIAL INSURANCE SOCIAL PROTECTION STATE ENTERPRISES TAX UNEMPLOYMENT WAGE GROWTH WILL WORKER WORKER CONTRIBUTIONS WORKERS
spellingShingle	AVERAGE WAGE AVERAGE WAGES BASIC PENSION BENEFIT ADJUSTMENTS BENEFIT FORMULA BENEFIT INDEXATION BENEFIT LEVELS BENEFIT RATES CONTRIBUTION BASE CONTRIBUTION RATE CONTRIBUTION RATES DEFICITS DISABILITY DISABILITY PENSIONS EARLY RETIREMENT EARNING ELDERLY EMPLOYEE EMPLOYMENT EQUAL OPPORTUNITIES EU FINANCES FINANCIAL CRISIS FINANCIAL PERFORMANCE FINANCIAL SUSTAINABILITY FISCAL DEFICIT FORMAL PENSION FORMAL PENSION SYSTEM FUNDED ACCOUNT GENDER GENDER EQUITY GOVERNMENT BUDGETS GROSS REPLACEMENT RATES GROSS WAGE GROSS WAGES HEALTH INSURANCE HIGH WAGE HOME INDIVIDUAL ACCOUNTS INFLATION INFLATION INDEXATION INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION MANAGEMENT INFORMATION SYSTEMS INFORMATION TECHNOLOGY INTERNATIONAL FINANCIAL CRISIS INTERNATIONAL STANDARDS JOBS LABOR COSTS LABOR MARKET LABOR MARKETS LEGISLATION LIFE EXPECTANCY LIVING STANDARDS MALE WORKERS MARKET ECONOMY MINIMUM INCOME PAYROLL TAXES PENSION PENSION ADMINISTRATION PENSION BENEFITS PENSION CONTRIBUTION PENSION COVERAGE PENSION EXPENDITURES PENSION FUND PENSION PLAN PENSION SCHEME PENSION SYSTEM PENSION SYSTEM REFORMS PENSIONERS PENSIONS PRICE INDEXATION PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PILLAR PUBLIC PENSION PUBLIC PENSIONS RATE OF RETURN REAL WAGE REPLACEMENT RATE REPLACEMENT RATES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT BENEFITS RETIREMENT INCOME REVENUE COLLECTION SOCIAL ASSISTANCE SOCIAL INSURANCE SOCIAL PROTECTION STATE ENTERPRISES TAX UNEMPLOYMENT WAGE GROWTH WILL WORKER WORKER CONTRIBUTIONS WORKERS World Bank Romania : Pensions Policy Note
geographic_facet	Europe and Central Asia Romania
description	This report discusses pension reform which took place in 2001 as a result of deficits which began in the 1990s. Important changes included increasing retirement ages, and the introduction of a new point based benefit formula, taking into account the entire work history of the employee, in order to strengthen the link between contributions and benefits. These actions improved pension system financial performance sufficiently to achieve a slight surplus in 2006 and 2007. Despite progress in pension system reforms, the combination of recent increases in benefit levels, the aging of the population, and the absence of a rule for benefit indexation has once again brought the system s long term financial sustainability into question. Some other challenges: high contribution rates spur the growth of informal employment; low retirement ages increase fiscal pressures; and the possibility of generous early retirement provides incentive for workers to leave formal sector employment. The report suggests several policy options to improve the pension situation, the first of which is to increase the retirement age. The report ends with annexes.
format	Economic & Sector Work :: Policy Note
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Romania : Pensions Policy Note
title_short	Romania : Pensions Policy Note
title_full	Romania : Pensions Policy Note
title_fullStr	Romania : Pensions Policy Note
title_full_unstemmed	Romania : Pensions Policy Note
title_sort	romania : pensions policy note
publisher	Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2008/11/16797513/romania-pensions-policy-note http://hdl.handle.net/10986/18912
_version_	1764441048713527296

Romania : Pensions Policy Note

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