MPs of the Bloc of Communists and Socialists (BCS) suggest that the pension indexation indicator should be calculated based on the average annual inflation rate for the last three years. They put forward a draft law in this regard, noting that if the proposed calculation formula is applied, pensions on April 1, 2024 will be indexed by 15.76%, IPN reports.
“The draft law proposes to modify the pension indexation method given the need to support the elderly citizens with low incomes and aims to increase the social protection of recipients of pensions in the Republic of Moldova. The bill covers the 674,891 pensioners, 84,557 persons who receive social welfare,” BCS MP Alla Darovannaya told a press briefing.
“The government in the 2024 budget planned a pension indexation rate of 6%. This was the indicator forecast in December 2023, but it later announced that pensions will be indexed to the real rate of slightly over 4%. Even this lower indexation rate greatly disappointed and upset pensioners because every leu for them counts. If the formula for calculating the pension indexation indicator is applied, according to the formula proposed by us through this bill, the pension on April 1, 2024 will be indexed by 15.76%,” said the MP.
Under the Law on the Public Pension System, pensions are indexed annually on April 1. The indexation coefficient is the inflation rate at the end of the previous year, expressed in the increase in consumer prices in December of that year compared to the same month of the previous year. The indexation coefficient is set by the Government.
BCS proposes that pensions should be indexed according to inflation for last three years
