Increasing the retirement age of judges in Romania to 65 years and limiting pensions
Romanian Prime Minister Proposes Pension Reforms for Magistrates
Romanian Prime Minister Ilie Bolojan has proposed a series of reforms aimed at addressing issues in the pension system for magistrates. The key details of the proposed changes include an increase in the retirement age, a longer minimum length of service, and a cap on pensions.
The retirement age for magistrates will be raised from the current ages (around 47-49) to 65 years, aligning with the standard retirement age. The minimum required years of service before a magistrate can retire will increase from 25 to 35 years. Pensions will be capped at a maximum of 70% of the last net salary, instead of the current 80% of the gross salary.
These changes target special pensions that are currently not contributory and mainly benefit judges and prosecutors. The reform aims to ensure sustainability in the current economic context and meet Romania's commitments under the National Recovery and Resilience Plan (PNRR).
The government has faced legal and financial challenges with over 20,000 lawsuits related to unclear salary laws in the justice system, costing around 10 billion lei (€2 billion). The reform is part of a broader fiscal adjustment package to reduce deficits and public spending.
The proposed changes have been met with criticism from the Superior Council of Magistracy, who cite constitutional concerns, lack of consultation, generational disparities, and potential destabilization of the judiciary. The Justice Minister has clarified that Bolojan’s announcement is a proposal subject to revisions.
The prime minister emphasized the need for a salary law that eliminates ambiguities to avoid further legal actions and financial consequences. He highlighted that the too-early retirement of magistrates and the current pension calculation method are significant issues in the special pension system. The current method of calculating pensions in the justice system, which is based on gross income, was criticized by Bolojan.
The prime minister also stressed the importance of creating a justice system composed of mature professionals. He specified that the proposed calculation for pensions would be based on 55% of the average of the last 7 years, but not more than 70% of the net salary. However, no new information about Romania's fiscal package or the risk of losing funds from the National Recovery and Resilience facility was provided in this paragraph.
The reform is scheduled to be included in Romania’s third fiscal package expected in August 2025. Bolojan noted that the early retirement of magistrates is a problem of both quality and sustainability for the coming years. He underlined the need for a clear and fair salary system to ensure the long-term stability of the justice system.
- The proposed pension reform for Romanian magistrates suggests aligning the retirement age with the standard retirement age of 65 years in line with global health-and-wellness standards.
- In the context of Romania's fiscal adjustment package, the finance ministry is considering capping magistrate pensions at 70% of the last net salary, as opposed to the current 80% of gross salary, as part of the reform.
- The general news landscape is closely monitoring the political developments surrounding the pension reform for Romanian magistrates, which has sparked controversy over constitutional concerns and generational disparities, impacting the broader business and economic landscape as Romania moves towards implementing its National Recovery and Resilience Plan (PNRR).
