Part III

The guaranteed minimum social pension, established as of April 1, 2009, marks a first for the Romanian social security system. The purpose of this benefit is to reduce poverty and improve the standard of living for the elderly. The introduction of the guaranteed minimum social pension is justified by the existence of a significant number of public pension benefits whose levels do not ensure a decent standard of living for beneficiaries, and it aims to prevent social exclusion among a segment of public pension system retirees, who constitute a disadvantaged group. Regarding the legal nature of this benefit, some have argued that it is a social insurance benefit, while others have argued that it is a social assistance benefit. In our view, the guaranteed minimum social pension is a social assistance benefit, even though the current regulations are somewhat confusing. Based on this, as well as on the experience gained during the first few years of implementation, the regulations governing the guaranteed minimum social pension should be improved in the near future.

Keywords: guaranteed minimum social pension, poverty reduction, social exclusion, social assistance, benefits, retirees, public pension system, social insurance