Romanian PM Ciuca talks amendments to Pillar II pension funds with fund managers

On February 9, 2022, Romanian prime minister Nicolae Ciuca held a working meeting with the Romanian Association of Privately Administered Pensions (APAPR), which brings together private Pilon II pension administrators from Romania, the largest investors on the Bucharest Stock Exchange (BVB).

On behalf of APAPR, the meeting at Victoria Palace was attended by Mihai Bobocea (APAPR spokesperson), Radu Crăciun (APAPR president and BCR Pensii CEO) and Andreea Pipernea (APAPR vice president and NN Pensii CEO).

"The discussion with the prime minister and his panel of experts focused on the three topics related to Pillar II in the milestone that the Government has to tick for PNRR in the first quarter of 2022", Mihai Bobocea told Ziarul Financiar.

"First of all, the increase of the contribution transferred to the Second Pillar of pensions - here we have proposed an increase from 3.75% at present to 4.25% in 2023 and 4.75% in 2024, so that the public finances will gradually absorb the necessary budgetary effort," he added.

According to the timetable set by law for the increase in Pillar II contributions, this contribution should have been 6% at present.

"Secondly, the quantitative and qualitative relaxation of the investments of the pension funds, as well as the continuation of the listings of companies on the Bucharest Stock Exchange [were discussed]. Thirdly, legislative changes to digitize further the interaction between pension funds and their participants, as well as the need for private pension fund managers to access public databases, in legitimate interest," Mihai Bobocea explained.

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