ro fr
universul juridic magazin

Applying the correction index or correcting the index? A controversial legislative measure in the public pension system

Law no. 263/2010 regarding the unified public pension system, which replaced Law no. 19/2000, amended, inter alia, the procedure for adjusting the pension point value and regulated the correction index, with the aim of ensuring that pensioners benefit from an income replacement rate of 43.3% out of the average gross wage in the economy. Subsequently, the legal provisions regulating the adjustment mechanism of the pension point value and the correction index were amended by Government Emergency Ordinance no. 1/2013, which was subjected to constitutional review. After analysing the legal provisions contained in Government Emergency Ordinance no. 1/2013 and Decision no. 437/2012 of the Romanian Constitutional Court, that deemed unconstitutional art. III paragraph (2) and (3) of the emergency ordinance in question, we concluded that both the legislator and the Constitutional Court made an incorrect assessment regarding the foundation on which the correction index rests upon.