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Starting from January 1, 2025, pensioners in Romania will benefit from a new pension indexation, according to a detailed announcement made by Daniel Baciu, head of the National Pension House, during an intervention on Romania TV.
This increase will be determined by a clear indexing mechanism, based on the average rate of inflation and the real increase in average gross wage earnings in the economy. However, not all pensioners will receive the same indexation percentage and some incomes will be frozen.
How pension indexation will be calculated in 2025
Daniel Baciu explained in detail the formula used to calculate the indexation of pensions in 2025. The indexation will include two main indicators:
- Average inflation rate for the previous year, in this case 2023.
- 50% of the real increase in gross average earnings in the economy.
According to preliminary calculations, the inflation rate for 2023 is 10.4%. Adding the indicator related to wage earnings leads to an estimated 12% increase in the reference point value (PVR). Baciu specified that “this is an estimate, and the final figures will be confirmed after we receive the final data from the National Institute of Statistics (INS).”
Benchmark value and impact on pensions
The current value of the reference point is 81 lei. With an estimated increase of 12%, the new value would be approximately 91 lei starting from January 1, 2025. at the new value of the reference point of 91 lei”, Baciu explained in his intervention.
This update will affect all pensions in payment, so that the total number of points on each Romanian’s retirement decision will be adjusted according to the new value of the VPR. This will bring an across-the-board increase in pensioners’ incomes, except where certain incomes are frozen.
Unresolved retirement file issues
In addition to the explanations regarding the indexation of pensions, Daniel Baciu also addressed the issue of the retirement files submitted under the new law as of September 1 and still unresolved. “We have files, the new beneficiaries have applied for the pension. Here we have to find urgent solutions to receive their pension rights”, declared Baciu la RTV.
To speed up the process, the National Pension House formed a special task force, which includes specialists from the territorial pension houses and experts from the IT system maintenance company. “From Monday, this task force enters its duties. We are starting the testing of the new computer program that calculates the pensions of those who have applied for this right starting from September 1. We have a week to complete these tests,” he added.
The computer program will be tested with complex files, and after the testing is completed, it will be put into production and used to calculate pensions. “We hope that in the next period people will receive their pension rights”, stated the head of the Pension House.
The situation of pensioners who did not receive extra money at the recalculation
Another important aspect addressed by Baciu was that of the 800,000 pensioners who did not benefit from an increase in pensions upon recalculation. “In order not to reduce their pension upon recalculation, the state supplemented the pension to the current level. The pensions of Romanians in this situation will be indexed again only when the amounts of money that that pensioner must take in addition on January 1 will cover the amounts with which the state supplemented their pension”, explained Baciu.
This mechanism for supplementing pensions was necessary to prevent pensioners’ incomes from falling following the recalculation. However, for some of them, pensions will remain frozen until future indexations fully cover the additional amounts received.
Conclusion and outlook for retirees
The increase in pensions in 2025 is an essential measure to protect the purchasing power of pensioners in the context of high inflation and the rising cost of living. Although most retirees will benefit from this indexation, it is important to note that individual situations may vary and some income may remain temporarily frozen.
Daniel Baciu and his team at the National Pension House are making efforts to ensure a fair and transparent pension calculation process, including the management of unresolved files. Efforts to digitize and update the IT system are essential to meet the needs of an ever-aging population and to ensure that all retirees receive the rights they are entitled to.
As January 1, 2025 approaches, it remains to be seen how the final figures will evolve and how the announced measures will be implemented. Retirees are advised to watch for official updates to better understand how these changes will affect their income.
Source: www.doctorulzilei.ro
