According to the explanatory dictionary of the Romanian language – dexonline, pension is the amount of money paid periodically on the basis of legal rules (within the framework of social insurance) to former employees after exceeding a certain age limit or in case of illness or disability, as well as to the heirs of deceased employees or pensioners.
In Romania, the pension system is structured on four pension pillars, as follows: Pillar I, Pillar II, Pillar III, Pillar IV.
Pillar 1– public pension system
The public pension system is regulated by Law no. 263/2010 on the unitary public pension system, with subsequent amendments and additions.
The public pension system is of a redistributive type, based on intergenerational solidarity and operates according to the principle of contributory social insurance, according to which social insurance funds are established on the basis of the contributions due by natural and legal persons participating in the public system, social insurance rights being due on the basis of the social insurance contributions paid. In the public pension system the following categories of pensions are granted:
– pension for age limit;
– early retirement pension;
– partial early pension;
– disability pension;
– survivor’s pension.