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1. Introduction 2. Fundamentals of Moldova’s Pension Legislation 3. The Present-Day Demographic Setting 4. Demographic Trends in the Economic Activity of the Population 6. Payers of Pension Contributions 7. Recipients of Pensions/Benefits 8. Present-Day Macroeconomic Environment 9. Software Complex 10. Approbation of the Model Annex 1. Base scenario
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Development of the Analytical Model of the Republic of Moldova’s Pension System
2.3.4. Pensions to Specific Categories of PopulationMoldova’s Pension Reform Strategy proposes to unify pension standards for all persons receiving pensions of the same type. In this regard, in 2003 Law No. 358 on introduction of changes and additions to certain legislative instruments was adopted, which supplemented the Law on State Social Insurance Pensions with a separate chapter regulating terms and conditions for assigning pensions to several categories of population such as Parliament and Government members, public employees, and persons with elective offices in local administration bodies. Attainment of the statutory retirement age has become the main condition for assigning pensions to these categories of beneficiaries, an adequate length of service, both total and in special conditions, provided. Hence parliamentarians and members of the Government need at least a two-year record, attainment of the retirement age and adequate total length of service provided, to be entitled to a pension amounted to 42 % of the average monthly insured income of an active member of the national parliament or government. In order to be entitled to a pension amounted to 42 % of the average monthly insured income public employees need to re-confirm at least 15 years of their public service and persons with elective offices in local administration bodies – at least 8 years. Public employees with a 20-year public service experience acquired prior to 1st January 2004, are entitled to a 4-year reduction of the statutory retirement age, those with the same experience of 15 years – to a 5-year reduction. Public employees with 15-years of public service have entitlement to a 20-percent increment to their pension, plus 2 % per each year on service in excess of these 15 years, with the ceiling of 33 %. Persons with elective offices in local administration bodies are entitled to a 20 % pension increment for their 8 years in the office plus 2 % per each complete year on the insurance record while in this office, with the ceiling of 33 %. Pensions assigned to these categories of population are funded at the account of the state social insurance budget while the increments – from the state budget. Pensions assigned prior to 1st January 2004, are funded on a fifty-fifty basis by the social insurance and state budgets. It is necessary to point out that the latter category of pension recipients is small and makes up as little as 0.3 % of the total number of pensioners. |
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Independent Actuarial Information-Analitical Center |