The pension system in Romania during transition period
The pension system in Romania during transition period

Summary/Abstract: This paper inventories the problems and the adopted solutions within the pension system in Romania. It also presents the main indicators of this system in transition period. Early retirement schemes adopted throughout the first decade of transition the number of pensioners increased considerably. This number reached 80% between 1990 and 2003. Early retirement policy elaborated to solve growing unemployment resulted in reducing the average age of retirement. Consequently, the number of contributors for each pensioner declined from 3.43 in 1990 to only 0.79 in 2003, while the percentage of GDP used for pension expense in the same period fell from 7.2% to 6 5%. To cover a growing deficit of pension funds, the government increased contributions by 49.5% in 2005.

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