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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
7.3. Invalidity PensionersIn conformity with the Law of the Republic of Moldova On State Social Insurance Pensions, No. 156-XIV, dated 14th October 1998, invalidity pensions are assigned to insured persons in case of their total or partial disability caused by
Table 7.8 provides data on numbers of various invalid categories for 2003. Table 7.8: Numbers of invalidity pensioners
Source: data of the National Social Insurance Fund The Table makes it clear that persons, who became invalids due to a systemic disease, constitute a significant portion of the invalidity pension recipients, i.e. 96.65 %. They are succeeded by invalids due to an occupational disease with their 3.31 %. Share of pensioners for invalidity caused by a severe workplace injury is just 0.04 % and they form quite an insignificant category of the invalidity pension recipients. It should be noted that not all the invalidity pensions were granted in accordance with the Law On State Social Insurance Pensions. Invalidity pensions paid to persons who took part in emergency relief operations at the Chernobyl Nuclear Power Plant and military servicemen, as well as social pensions/benefits for invalidity, are regulated by other laws. ‘Chernobyl people’ and military servicemen are not numerous among all the pensioners; their share is less than 0.6 %. Besides this such pensions are financed at the expense of the state budget, i.e. through transfers. For this reason the above-mentioned category of invalidity pension recipients will not be hereinafter considered. Social pensions/benefits for invalidity are assigned to invalids ineligible for pensions within the social insurance scheme. This is a rather numerous category of invalidity pension recipients, they make up around 6 % of all the pension recipients. Hence this category has social significance and is reviewed separately, in spite of the fact that such pensions/benefits are also funded by the state budget. In order to be granted an invalidity pension on general terms in accordance with the Law On State Social Insurance Pensions one needs a requisite insurance contributions record, its length at the moment of establishing his or her disability is specified in Table 7.9. Table 7.9: Length of an insurance contributions record required for granting invalidity status on general terms
Source: Law of the Republic of Moldova On State Social Insurance Pensions, Art. 20. Hence in theory an invalidity pension might be assigned to a person of 15 years old, though he or she would actually receive this pension after the age of 17. As a rule, disabled persons of younger age receive either social pensions/benefits or a survivors’ pensions. When being of the working age the greater portion of invalids is receiving invalidity pensions assigned on general terms. In case if invalids since childhood acquired certain records of their work experience, this is usually possible after the age of 17, they may also have their social pensions for invalidity re-classified to invalidity pensions assigned on general terms, as such pensions are much higher in size than social pensions. On attaining the statutory age of retirement many invalids re-classify their invalidity pensions to old-age pensions. If, on the other hand, persons receiving old-age persons become disabled, they would prefer not to officially register their cases. It normally takes place in spite of the fact that invalidity and old-age pensions are almost equal in size. This is the cause why there is a sharp decline of the number of invalidity pensioners in the pension age groups following just after the statutory age of retirement. We should point out that there are around 20 % of disabled pensioners among men of the retirement age, while among women – around 30 %. In 2003 invalidity pensioners made up approximately 19 % of the total number of pensioners and 3.2 % of the total population. Figure 7.3 displays data on the age and sex distribution of invalidity pensioners as a percentage in the population groups of corresponding sex and age. These data illustrate the above considerations on numbers of invalidity pensioners in various age groups. First invalidity pensioners come after age mark 17. They are scarce and practically up to age mark 25 constitute only a few hundredths of a percent in the population of the corresponding age. Further rightwards their numbers grow exponentially to reach their peak within the pre-retirement age interval with the invalid share as high as 12-15 %. After the statutory age of retirement (57 years of age for women and 62 for men) this share is sharply declining and becomes stable not earlier than in the elder retirement age groups where it constitutes around 3-5 % of the population of corresponding sex and age. Fig. 7.3: Invalidity pensioners: а) men; b) women |
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