Home
Legislation Publications Pension models About project Statistics
Legislation Publications Pension models About project Statistics

1. Introduction

2. Fundamentals of Moldova’s Pension Legislation
2.1. General Principles
2.2. Insurance Contributions and the Tax Base
2.3. Types of Pensions and Terms and Conditions of Their Assignment
2.3.1. Old-age Pensions
2.3.2. Invalidity Pensions
2.3.3. Survivor’s Pensions
2.3.4. Pensions to Specific Categories of Population
2.3.5. Social Pensions/Benefits
2.3.6. Pensions Paid at the Account of the State Budget
2.4. The Minimal Pension and Guaranteed Minimum
2.5. Pension Indexing

3. The Present-Day Demographic Setting
3.1. General Population Changes
3.2. Fertility
3.3. Mortality and Life Expectancy
3.4. Population Growth and Migration
3.5. The Base Demographic Forecast

4. Demographic Trends in the Economic Activity of the Population
4.1. Demographic Factors Affecting the Number of Population at the Economically Active Age
4.2. The Profiles and Dynamics of the Economic Activity of the Population
4.3. Projection Scenarios for the Economic Activity of the Population

5. General Employment Issues

6. Payers of Pension Contributions
6.1. The Profile and Number of Pension Contribution Payers
6.2. Projection Scenarios for Insurance Contribution Payers

7. Recipients of Pensions/Benefits
7.1. Profile of Pension Recipients
7.2. Old-Age Pensioners
7.3. Invalidity Pensioners
7.4. Recipients of Pensions for Survivors
7.5. Recipients of Social Pensions/Benefits
7.6. Forecast of Pensioner Numbers

8. Present-Day Macroeconomic Environment
8.1. Historical Background
8.2. Base Macroeconomic Forecast

9. Software Complex
9.1. Mission and Structure of the Software
9.2. Computation Scenario Block
9.3. Demography Block
9.4. Macroeconomics Block
9.5. Receipts Block (Calculation of Contributions)
9.6. Expenditure Block
9.7. Output and Reports

10. Approbation of the Model
10.1. Modelling Scenarios
10.2. Simulation Output
10.3. Computations on the Pension Calculator

Annex 1. Base scenario




Development of the Analytical Model of the Republic of Moldova’s Pension System

7.3. Invalidity Pensioners

In 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

  1. systemic disease;
  2. severe workplace injury;
  3. occupational disease.

Table 7.8 provides data on numbers of various invalid categories for 2003.

Table 7.8: Numbers of invalidity pensioners


Type of pension

Numbers

pers.

%

Pension for invalidity caused by a systemic disease

113,168

96.65

Pension for invalidity caused by an occupational disease

3,872

3.31

Pension for invalidity caused by a severe workplace injury

45

0.04

TOTAL: invalidity pensioners

117,085

100.00

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


Age on the day of establishing an Invalidity Group status

Length of an insurance contributions record

Under 23

1 year

23-26

2 years

26-31

3 years

Above 31

5 years

Source: Law of the Republic of Moldova On State Social Insurance Pensions, Art. 20.
Pensions for invalidity caused by a severe workplace injury or occupational disease are assigned irrespective of the length of an insurance contributions record. In case if a pension for invalidity caused by a severe workplace injury or occupational disease is re-classified to a pension for invalidity caused by a systemic disease, the minimal required length of an insurance contributions record will be determined in respect of the age of the person involved at the moment when disability was first established.

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


Назад К оглавлению Вперед

© Independent Actuarial Information-Analitical Center
Office 342, Building 3a, 1 Khoroshiovsky Proezd, Moscow, 125284 Russia
Tel./fax: (7-495)255-63-08, e-mail: Chief@actuaries.ru