New rules for the Romanian unitary pension system

Amendments to the provisions governing the unitary pension system law have been adopted to bring that law into compliance with the change in the tax law that transfers the entire social contribution to employees.

Among the most important provisions:
• The social insurance contract may be terminated at the initiative of the territorial pension house if there is no payment of social insurance for six consecutive months;
• People who meet the conditions for obtaining more than one pension from the public pension scheme must opt for one of them;
• Persons who qualify for better service pensions or old-age allowances, which are governed by special laws, must opt for one of them;
• The pension from the public pension system cannot be aggregated with a
service pension or old-age allowance regulated by special laws. So, the person who qualifies for one of them must opt for the pension from the public system or for the pension regulated by special laws;
• An employee may aggregate a public system pension with a private pension.

The same act amends Law no. 346/2002 on insurance against accidents at work and occupational diseases.

Among the most important aspects:
• The new law excludes military personnel in service, police officers, civil servants with special status, as well as personnel working in institutions of defense, public order, national security or that are part of the Ministry of Justice or National Administration of Penitentiaries from these provisions.
• If the employer temporarily suspends its activity or ceases its activity by division or merger, dissolution, reorganization, liquidation, judicial reorganization, judicial liquidation, bankruptcy , or in any other way, the employee’s right to the temporary incapacity benefit, to reduce the time work, or temporarily shift to another job that arose before the employer’s changes occurred must be paid out of the amounts specified for insurance against accidents at work and occupational diseases in the state social insurance budget.

The Emergency Ordinance became effective on 1 January 2018. Law no. 263/2010 on the unitary pension system was modified by the Emergency Ordinance no. 103/2017 and duly published.

Stratulat Albulescu - Attorneys at law