BUCHAREST (Reuters) - Romania's Social Democrat-led government said on Friday it would cap special pensions for the military and secret services to keep spending in check.
A number of wage increases and tax cuts have raised concerns with the European Commission and the International Monetary Fund that the European Union member state will miss its fiscal deficit target of 3.0 percent of gross domestic product.
Pay deals granted to several areas of the bloated public administration including the army, secret services, police and lawmakers mean their pensions get hiked in line with special wage rises in their sectors even after retirement.
"We are in a situation where some pensions are higher than wages and there will come a moment when the budget could not afford that," Defence Minister Adrian Tutuianu told reporters.
The average military special pension stands at 3,292 lei ($856.98) per month, Tutuianu said. In comparison, the average pension for the 5.2 million state pensioners stands at a little under 1,000 lei ($260.32).
The government plans to approve an emergency decree that raises special pensions only in line with inflation for the retiring personnel from intelligence agencies, the defense and interior ministries, aviation and lawmakers.
It did not say how many special pensioners it has. The plan to cap their pensions has led to a wave of requests for early retirement in the military over the last few weeks.
Also on Friday, the government will approve a decree that caps pay for maternity leave at 1,800 euros ($2,137.68)per month.
The government also plans to increase police wages by 10 percent, and pay for civilian personnel in the public order sector by 15 percent.
($1 = 3.8414 lei)
($1 = 0.8420 euros)
(Reporting by Luiza Ilie; Editing by Andrew Bolton)