Pension-salary cumulation: The Senate has approved an 85% cut to service and military pensions

The Senate tacitly adopted on Wednesday the Government-initiated bill that radically changes the rules on combining a pension with a salary in public institutions. Those receiving service pensions or military state pensions who choose to continue working in the public sector will have their pension reduced by 85% for the entire period they remain employed.

In practice, anyone falling under the new rules who continues to receive a state salary will only collect 15% of their pension whilst employed. The bill does not apply to pensioners working in the private sector, who remain unaffected by the restriction.

Who is affected by the 85% reduction

The measure concerns recipients of service pensions and military state pensions who continue to work in publicly funded institutions. The Government justified the bill on the grounds that it is necessary to prevent the full accumulation of two income streams drawn from public funds.

The reduction applies exclusively for the period during which the person is actually employed by the public institution. The bill was tacitly adopted by the Senate after the deadline set for debate and vote — 28 July 2026 — expired. The tacit adoption was announced in plenary by the President of the Senate, Mircea Abrudean.

New rules on the retirement age of civil servants

The bill sets out conditions for civil servants who reach the standard retirement age but wish to continue working. They will be able to submit a request to carry on working at least 30 days before meeting the retirement conditions, and their employment may be extended annually, with the approval of the institution's head, up to the age of 70.

The legislation also includes transitional provisions covering secondments already under way, procedures initiated before the law comes into force, and transfers that may take place strictly in the interest of the service.

Other amendments for public sector employees

The bill caps at six years the duration for which service relations may be suspended for persons working in European Union institutions or international organisations, in order to prevent the prolonged blocking of posts within the public administration.

New rules are also introduced for situations involving institutional reorganisation followed by redundancies: the institution will be required to present civil servants serving notice with the corresponding vacant public posts. If several individuals meet the criteria for the same position, a selection examination may be held, and the notice period will be suspended for the duration of that process.