What periods are NO longer considered seniority

Lower pensions from autumn. The new pension law comes with new changes regarding the recalculation of pensions. Incomes of some pensioners, directly affected.

The main change concerns the pension calculation formula, which is now based on points being earned. The points are divided into three categories:

1. contribution points;
2. points for assimilated (non-contributory) periods;
3. stability points.

The new pension calculation formula is simplified and is defined as follows:

Pension= Total points earned X VPR

Total points obtained = contribution points + points for assimilated (non-contributory) periods + stability points.
The VPR (Reference Point Value) is set at 81 lei, accordingly news18.ro.

Periods that are not considered contributory

Non-contributory periods, also called assimilated periods, include:

• Years of unemployment.
• Army years.
• College years.
• Periods of child growth.

These periods are not considered direct contributory years, but reduced points are awarded for them. Each year spent in one of these situations contributes 0.25 points to the pension calculation. For example, a person who attended four years of college will receive 1 point (4 years X 0.25 points/year). Similarly, two years of military service will earn 0.5 points (2 years X 0.25 points/year).

A key aspect of the new law is that non-contributory years are not eligible for stability or bonus points. Thus, retirees who have accumulated such periods lose the opportunity to benefit from additional stability points, which are intended to reward long-term work.

Stability points

Stability points are awarded based on the number of years worked over a certain period, as follows:

• 0.50 points/year for years worked between 26 and 30 years.
• 0.75 points/year for years worked between 31 and 35 years.
• 1 point/year for years worked over 35 years.

Furthermore, years worked while a person is retired do not qualify for these stability points, as they are considered non-contributory.