EIRP Proceedings, Vol 1 (2006)

Abstract

The system of social insurance in Romania is atypical. This statement is based on the fact that up to the 31^st of December, 2005 two activities were paid from the found of social insurance, activities that had no connection with the working technique (funds collection and pension payments): - child growth and care; - sick payments. Beginning with 1^st of January, 2006, these two activities were not paid any more from BAS, their financing source being changed: state budget and health insurance budget as provided by OUG 148/2005 and OUG 158/2005. Nevertheless the reality is not encouraging at all: if in the European Union the rate between the tax payers and beneficiaries (pensioners) is of 2.6 to 1, in Romania it is lower than a tax-payer for a beneficiary. The reasons are: - a non-functional economy where the work is in “black” or “gray”; - inexistence of alternative systems to the public pension system. The objectives for the year 2006 are: - the applicability of the two laws (249/2004 and 311/2004) as regards the private and occupational pensions. There are also a series of insurance companies that entered the Romanian market after the 90’s to sell private pensions: ING, AVIVA, INTERAMERICAN and ALLIANZ – LIFE. I consider that the making of a life insurance is a save investment for a young or middle aged person. But what is to be done with the aged persons? What could we offer them? A solution might be the capital infusion, as a derogation from the algorhythem of pension calculation, according to HG 1550/2004 and OUG no. 4/2005 is completely unnatural and non-productive.