Parliament’s plenary session on Tuesday attempted to resolve the contentious multiple pensions for state officials issue through partial acceptance of the President’s amendments, though the incomplete adoption of presidential concerns leaves open the possibility of referring the legislation to the Supreme Constitutional Court.
If referred to the court, the legislation would be deemed unvoted. However, should the President sign the law, the new framework would apply only to future appointees, excluding those who already hold or held public office and have established pension rights.
The Presidential Palace awaits the Attorney General’s official opinion on the amended law, which will shape the executive’s final position.
Changes made to new framework
Parliament proceeded with modifications to address potential unconstitutionalities:
The definition of “office, function or position in the Republic” was reformulated to cover the entire public and broader public sector. Current holders of specific positions – Attorney General, Deputy Attorney General, judges, Audit Service members and Central Bank Governor – were explicitly exempted from new regulations, though the exemption applies only to current office holders.
The Auditor General’s authority to determine pension allocation through circulars was abolished and replaced with general provisions based on pensionable earnings and service time.
Rejected presidential concerns
Despite modifications, several presidential objections were not adopted. The alleged unequal treatment of persons in the same category was not fully addressed, nor was the potential violation of property rights through pension restriction or suspension removed.
Provisions cancelling terms of existing contracts remained unmodified, whilst the administrative element in provisions affecting executive power was retained. Concerns about increased administrative costs were ignored.
The minimum remuneration mechanism was maintained, providing payment of only the first €500 of pension when someone assumes a new office, with the remainder suspended.
Original legislative framework
The initial laws provided for raising the retirement age limit to 65 for ministers, deputy ministers, MPs and mayors, pension suspension upon assuming new positions, and pension offsetting for multiple terms whilst maintaining established rights.
Presidential concerns
The President returned the laws citing violations of Article 28 (equality before law), Article 23 (property rights – pensions), Article 26 (freedom of contracts), and risks affecting existing judges and Audit Service members in new appointments.
Additional concerns included interference with executive powers (separation of powers), unlawful delegation of authority to the Auditor General (Article 127), and lack of consultation with the ECB regarding the Central Bank Governor.
The legislation’s fate now depends on the Attorney General’s opinion and the President’s subsequent decision on whether to sign or refer the matter to the Constitutional Court.
(information from CNA)