Romanian Senate passes bill to increase contribution to mandatory private pension funds

The Romanian Senate approved on February 4, under tacit consent, the project that provides for the increase in the contribution rate to the mandatory private pension funds (Pillar II) from 4.75% currently to 5.25% in 2026 and to 6% in 2027, Agerpres reports. The 6% contribution should have been reached in 2016 – 8 years after the scheme was launched in 2008, under the initial plan, the authors of the bill argued.

The deadline for debate and voting expired on February 2, and the legislative proposal is considered adopted by the Senate, which is the first body to be notified. The draft will be transmitted to the Chamber of Deputies, which is the decision-making body.

The legislative initiative amends Law No. 411/2004 on privately managed pension funds.

"Starting with January 1, 2026, the contribution rate to the pension fund is 5.25%. Starting with January 1, 2027, the contribution rate to the pension fund is 6%," the regulatory act states, as quoted by Economica.net.

The initiators, Liberal (PNL) deputies Raluca Turcan and Florin Roman, showed, in the explanatory statement, that at the time of the adoption of the legislation under which the 2nd pension pillar was established, Law no. 411/2004 on privately administered pension funds expressly provided that, at the time of the start of the collection activity, the amount of the contribution is 2% of the calculation base, and that within 8 years it will increase to 6%, with an increase of 0.5 percentage points per year.

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