The Labor Code has been amended so that women can opt for retirement at age 65, if they inform their employer 30 days before reaching the standard retirement age. However, few women know that once this decision is made, they cannot change their minds, and if they do, they will have to retire early, ie with a penalty, according to the amendments to the pension law in 2019 by the then Minister of Labor, Olguţa. Vasilescu, show ADEVĂRUL.RO in an analysis.
Specifically, 30 days before the date of cumulative fulfillment of the standard age conditions and the minimum contribution period for retirement, the employee may opt in writing to continue the execution of the individual employment contract until the age of 65.
The Labor Code has been amended since 2018, following a decision of the Romanian Constitutional Court (CCR) which established that women can choose, if they want, to continue their employment up to 65 years, without the employer to be able to oppose.
According to avocatnet.ro, in this case, the employment contract can be terminated before reaching the age of 65 only by dismissal, resignation or early retirement.
However, the new pension law, proposed and approved by the last PSD Government, stipulates that, starting with September 2021, the early retirement pension will be granted only with a quantum penalty.
“The amount of the early retirement pension is established by decreasing the amount of the old-age pension, in relation to the contribution period completed over the full contribution period (…) and to the number of months by which the standard retirement age has been reduced (…) “, States Law no. 127/2019.
Contribution period completed over the full standard period | Decrease percentage for each month of anticipation
up to one year 0.50%
over one year 0.45%
over two years 0.40%
over three years 0.35%
over four years 0.30%
over five years 0.25%
over six years 0.20%
between seven and eight years 0.15%
As now, when the conditions for old-age retirement are met, the early retirement pension will automatically be converted into an old-age pension.
At the same time, the pension will be recalculated – that is, the reduction of the amount will be removed and the eventual contribution period periods realized during the early retirement period will be added.
Currently, the early retirement pension can be obtained up to five years before reaching the standard retirement age, but only if a contribution period of at least eight years longer than the full contribution period has been completed.
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