UNICEF Transmonee Project Report
Feasibility Study for Database Collation and Use in the Republic of Moldova
November 2011
Introduction
This analytical report has been prepared in coordination with the Ministry of Finance (the MF), the Ministry of Internal Affairs (the MVD), the Ministry of Labor, Social Security and Family (the MTSZS) and the National Social Insurance Fund with the MTSZS. The cooperation mostly involved collection of data related to social security of population.
The data sources were represented by administrative records of the central government bodies (implementation of the state budget, social insurance budget, etc.) and registers, as well as random household interview data.
Please note that some data could not be obtained, and some data was partially accessible or not disaggregated as required.
Same as in the years before, the coverage of social security of children is incomplete. Specifically, no reliable and comprehensive data is available on: placement of the children in foster homes and in the alternative child care institutions; non-governmental social services; breakdown into gender and age groups, etc. In addition, not all juvenile justice data is available as far as gender aspect and age groups are concerned. Therefore, the major problem in children protection system is availability of reliable administrative records nationwide, since the social security system involves quite a number of central government authorities and some specific sources may distort the real situation in the state.
NATIONAL SOCIAL INSURANCE SYSTEM Overview
GENERAL PENSION SCHEME
Organizations and Institutions
National Social Insurance Fund is responsible for collection of contributions and granting of benefits.
The Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund.
Risks and Scope
Any insured permanent resident of the Republic of Moldova is entitled to a pension. An insured person means any individual of a productive age, permanently residing in the Republic of Moldova and subject to compulsory national social insurance, thereby being entitled to the right, which prevents, limits or eliminates any social risks envisaged by applicable laws. This right shall be exercised in accordance with applicable laws via the state system of insurance against social risks in the event of loss of earning capacity caused by old age, disability and any loss of breadwinner. The set of people subject to compulsory insurance in accordance with applicable laws shall be defined by the Law on the National Social Insurance System (the Law). Agricultural workers are also entitled to a pension on terms and conditions set by the said law.
Risks: old age, limited health, loss of breadwinner and premature retirement.
Minimum pension is the amount guaranteed by the government and payable to the citizens of Moldova on a monthly basis, if the pension calculated in accordance with the Law is smaller than the amount first mentioned herein.
Funding
Pensions granted in accordance with the Law are payable out of the Pension Fund.
Retirement Pension
Organizations and Institutions
National Social Insurance Fund is responsible for collection of contributions and payment of pension benefits.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund.
Risks and Scope
The right for retirement pension is provided to an individual who has reached the retirement age envisaged by applicable laws, subject to availability of statutory length of pensionable service.
The retirement age is 62 years for men and 57 years for women.
Pensionable service means sum total of the periods of working career during which social insurance contributions were made to the pension fund. Pensionable service includes working career periods during which individuals are subject to social insurance, and non-insurance periods treated as pensionable service (military service for enlisted persons or reduced military service; period of child care (up to 3 years) by any of the parents or, in the event of death of both parents, by a foster parent; period in which the insured individual received temporary incapacity allowance, unemployment benefits, subsidized employment benefits, etc.).
The length of pensionable service is 30 years and applies to men and women alike.
Retirement pensions are payable in full to all pensions, including those who have income covered by the national social insurance.
Funding
Pensions granted in accordance with the Law are payable out of the Pension Fund.
DISABILITY PENSIONS
Organizations and Institutions
National Social Insurance Fund is responsible for collection of contributions and payment of pension benefits.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund.
Risks and Scope
Disability means full or partial loss of capacity to work, which remains after the period of temporary disability benefit has expired, and which is detrimental to the affected individual’s ability to be engaged in gainful activities. The condition of disability, the cause, the extent and the time of occurrence thereof shall be determined by the Medical Council of Health Expert Examination (KVEZh) on the basis of provisions approved by the Government. The disability group is determined on the basis of the extent of loss of earning capacity.
The insured individuals are entitled to a disability pension in the event of full or partial loss of earning capacity caused by:
а) any common disease;
b) labor injury; or
c) occupational disease.
The amount of disability pension is based on the disability group and calculated by the formulas envisaged by the Law on the National Social Insurance System, taking into account the length of pensionable service and average monthly insured income. Disability pensions are payable in full to all pensions, including those who have income covered by the national social insurance.
Funding
Pensions granted in accordance with the Law are payable out of the Pension Fund.
SURVIVOR’S BENEFITS
Organizations and Institutions
National Social Insurance Fund is responsible for collection of contributions and payment of pension benefits.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund.
Risks and Scope
The survivor’s benefits payable out of the National Social Insurance budget mean the amounts payable on a monthly basis to an individual who has lost the breadwinner. The right for survivor’s benefits is granted to a bereaved individual whose demised relative was a pensioner or entitled to a pension.
The amount of the survivor’s benefits is determined as percentage of the pension of the demised breadwinner subject to the number of individuals entitled to this kind of pension.
Risks: - children under of over 18 years of age who are full-time students of secondary or higher education establishments until they have finished their studies or up to the date of graduation, providing however they are under 23 years of age;
– a spouse who had been married to the demised at least 15 years and never re-married, or, if on the date of demise or within 5 years following the demise, the said spouse has reached the retirement age or has become a disable person of Group 1 or Group 2;
– a spouse or a foster parent who takes care of the children of the demised breadwinner, the said children being no older than 3 years of age, and the said spouse or foster parent being unemployed or on a child care leave until the child reaches the age of 3 years.
The amount of survivor’s benefits is set as a percentage of the pension of the demised breadwinner, depending on the number of persons entitled to this kind of benefits.
Funding
Pensions granted in accordance with the Law are payable out of the Pension Fund.
PENSION SCHEME FOR THE SERVICEMEN OF THE MOLDOVIAN ARMY, POLICEMEN, INFORMATION AND SECURITY SERVICE, DEPARTMENT OF PENAL INSTITUTIONS AND THE BORDER SERVICE
Organizations and Institutions
The Ministry of Defense, the Ministry of Internal Affairs, the Information and Security Service, the Penal Institutions Department and the Border Service shall implement this Law.
Risks and Scope
This scheme applies only to compulsory pension insurance for: active servicemen, policemen and authorized officials of the Ministry of Justice, the Information and Security Service and the Border Service. The risks covered by this scheme include the length-of-service pension, disability pension and the survivor’s pension.
Benefits are resulting from the more favorable conditions of retirement, such as the earlier retirement age, the shorter length of service required for retirement, the more favorable pension basis calculation procedures as compared to the common pension scheme.
Funding
Pensions, benefits and indemnities are payable out of the State Budget.
BENEFITS IN THE EVENT OF TEMPORARY DISABILITY CAUSED BY COMMON DISEASES AND INCIDENTS UNRELATED TO WORK
Organizations and Institutions
National Social Insurance Fund is responsible for the provision of this kind of benefit.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund
Risks and Scope
This kind of benefits is payable to the insured individuals in the event of loss of physical and intellectual capacity, including the loss of skills caused by any disease or labor injury. Temporary disability benefits are payable to the insured individuals in accordance with the Law on Temporary Disability.
The effective period of temporary disability benefits shall start on the first day of the sick leave and shall not exceed 180 calendar days. Starting on Day 120, the benefit is payable subject to extension of the sick leave based on the conclusion of the Republican Medical Council of Health Expert Examination. Based on probability of recovery of the individual and for the avoidance of assignment of a disability category, the attending physician shall extend the 180 days’ sick leave for another 30 days. Temporary disability benefits may be paid to individuals working in agribusiness and to other individuals who work on the basis of an individual labor agreement entered into for a definite period. The insured individuals who work on the basis of individual labor contracts entered into for a definite period not exceeding 1 (One) year, including seasonal works, and unemployed individuals who receive their unemployment benefits, are entitled to temporary disability benefits for a period not exceeding 30 days within any calendar year. The insured individuals who work on the basis of individual labor contracts entered into for a definite period exceeding 1 (One) year, are entitled to a temporary disability benefit for 180 calendar days.
The amount of this benefit is calculated on the basis of the average monthly income for the 6 calendar months preceding the date of the insurance event. The amount of temporary disability benefit directly depends on the length of pensionable service.
Funding
These costs are funded from the National Social Insurance budget.
DISEASE PREVENTION (QUARANTINE) BENEFIT
Organizations and Institutions
National Social Insurance Fund is responsible for the provision of this kind of benefit.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund
Risks and Scope
The quarantine benefit is paid to the insured individuals who are prohibited to continue their work due to quarantine for a period specified in the Medical Leave Certificate issued in accordance with applicable laws. Disease prevention benefits are established in accordance with terms and conditions and in the amounts provided for by the Law.
Funding
These costs are funded from the National Social Insurance budget.
VOCATIONAL REHABILITATION BENEFITS
Organizations and Institutions
National Social Insurance Fund is responsible for the provision of this kind of benefit.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund.
Risks and Scope
For purposes of vocational rehabilitation, the insured individuals have the right to: temporary disability benefit to cover the prostodontic treatment and sanatorium-and-spa treatment. Temporary disability benefits for prostodontic treatment are payable to the insured individuals who are in-patients for purposes of prostodontic and/or orthopedic treatment for the entire period of hospitalization. Procedures for provision of vouchers for sanatorium-and-spa treatment are established by the Government.
Funding
These costs are funded from the National Social Insurance budget.
MATERNITY BENEFIT
Organizations and Institutions
National Social Insurance Fund is responsible for the provision of this kind of benefit.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund
Risks and Scope
Maternity (pregnancy and postnatal period) benefit is payable to the insured pregnant women, wives depending on the insured husbands, and to unemployed women who have the right for a maternity leave, which includes prenatal and postnatal leaves. The benefit is payable for the period of 126 calendar days starting from the thirtieth week of pregnancy, and in the event of any complications during the delivery, including the birth of two or more children – for the period of 140 calendar days. In the event of provision of a maternity leave during the child-care leave (to attend to a child up to the age of 3 years), a woman may get both (maternity and child-care) benefits. If the wife is dependent on a working husband (a wife is dependent on the insured husband if on the date of the right for a maternity benefit she is not employed and not insured against the relevant event (pregnancy), which is to be confirmed by her work record book or a certificate issued by the social insurance agencies), the maternity benefit shall be payable to the name of the wife.
Funding
These costs are funded from the National Social Insurance budget.
LUMP SUM BIRTH GRANT
Organizations and Institutions
National Social Insurance Fund is responsible for the provision of this kind of benefit.
Ministry of Labor, Social Security and Family controls the performance of the National Social Insurance Fund
Risks and Scope
Lump sum birth grant is a form of monetary support payable to the women insured with the National Social Insurance System. The amount of such grant is determined on an annual basis by the Law on the National Social Insurance Budget. This kind of grant is payable to the mother, and in the event of the mother’s death – to the husband or any other relative directly involved in taking care of the child, or to any foster parent (custodian).
Funding
These costs are funded from the National Social Insurance budget.
MONTHLY ALLOWANCE FOR CHILD CARE (UP TO 3 YEARS FOR INSURED AND UP TO 1.5 YEARS FOR UNINSURED INDIVIDUALS)
Organizations and Institutions