CHALLENGES IN THE FINANCIAL MANAGEMENT OF THE PUBLIC PENSION SYSTEM IN ROMANIA

Abstract

The paper presents the impact of tax measures beginning in 2016 as regard to the frequent increase of the gross minimum salary, reduction of social insurance rates, the increase of the country's average gross incomes, as well as to changing the social insurance contribution support by employees only. The implementation of the governmental plan to move from a deficit budget strategy of public social insurance to one with a surplus budget, in the context of significant non-supplementation of the number of taxpayers, represents a crucial factor for new challenges of the financial management of the public pension system in Romania. The results are planned to be seen by 2021 and consist of the continuous increase of the minimum and average nominal pension value, in the context of modernizing the system and eliminating inequalities between different categories of retirees covered by the new pension law.

Keywords

• Public Pension; Retirement Pension; Social Security; Budget Systems