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Retrospective 2002: Social security
January 21, 2003

Parliamentary majority has declared itself a socially oriented party. That is why enforcement of the social program goals has become a priority for the Communist Party.

I) The most important act passed by the Parliament as far as social security is concerned was the Law on modification of Article 41 of the Law no.156-XIV of October 14, 1998 on pensions of the state social insurance.

ADEPT comment: Under the law, commencing January 1, 2003 until December 31, 2007 the retirement age shall be 62 years for men and 57 for women. The law was an attempt to diminish the negative effects of the law passed in 1998, which provided for the gradual raise of the retirement age. Noteworthy, once the Parliament passed the modifications it received an alternative draft law. According to the draft law the raise of the retirement age should be stopped in general and not for several years. This draft law developed by the Social-Democratic Alliance was not supported by the Parliament for several reasons: absence of the Government endorsement; international monetary organizations were not consulted on the draft; and the initiative was viewed as a move aimed to bring the opposition political capital in elections.

II) A premiere in the history of the former socialist states was the adoption of the Law on Indemnification of Bank Deposits in the Savings Bank.

ADEPT comment: Indemnification of the bank deposits was one of the key promises made by the Communist Party during the previous electoral campaign. The law was a result of long public debates and negotiations with international monetary organizations. The latter failed to understand why it was necessary for the state to assume additional financial obligations, which cannot be achieved anyway. Although the impossible happened and international organizations consented to the adoption of the law, the fact that Moldova didn't receive the next tranches of the WB and IMF credits in December is very conclusive.

III) Another important law passed at the end of 2002 was the Law on compensating the difference between the tariffs on energy and natural gas for the residents to the left of Dniester river and the Law on additional pensions to the residents to the left of Dniester river. Commencing January 1, 2003 pensioners and disabled residing in Cocieri, Cosnita, Dorotcaia, Pirita and Molovata Noua villages, situated on the left bank of Dniester river shall receive additional 50-100 lei to their pensions.

IV) On April 19, 2002 the Parliament passed the Law on completing the Law no. 613-XV of November 8, 2001 on recalculating the pensions.

V) On May 23, 2002 the Parliament adopted the Law on modification and completion of the Penal Code and Code on Administrative Offence.

ADEPT comment: The law provides administrative and criminal liability for willingly breaching the term set for the salary, pensions, scholarships and other payments. It was mentioned that the time might come when even public authorities or Ministry of Finance would be prosecuted according to this law.

VI) At the end of 2002 session the Parliament passed the Law on obligatory medical insurance.

ADEPT comment: Although obligatory medical insurance was postponed for six months, the Parliament adopted the frame law regulating the amount and procedure of paying medical insurance. The law shall be binding for all local public administration bodies, companies, institutions, organizations and other economic units regardless of their form of property, for natural entities practicing entrepreneurial activity, as well as for foreign residents. The amount due for medical insurance in 2003 shall be 340 lei.

VII) In 2002 the Parliament ratified a series of World Labor Organization acts, in particular: Convention no. 11 on the right of association and coalition of the agricultural workers adopted in Geneva on October 25, 1921; Convention no. 99 on calculating the minimal salary in agriculture, adopted in Geneva on June 28, 1951; Convention no. 101 on paid vacations for agricultural workers, adopted in Geneva on June 26, 1952; Convention no. 119 on equipping the machinery with security devices adopted in Geneva on June 25, 1963; Convention no.141 on organizations of the rural workers and their role in economic and social development, adopted in Geneva on June 23, 1975; and Convention no. 184 on work security and hygiene in agriculture.






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