Romanian lawmakers draft mandatory private pension disbursement law
The private pension disbursement Law is finally close to being drafted, and it will regulate the options for the disbursement of the rights to the pension recipients, Economica.net reported.
This detail was not decided 13 years ago when the pension system's Pillar II and Pillar III were enacted. The ownership rights over the pension account has been initially seen as a sufficient guarantee to contributors.
The pension fund managers now advocate for severe limitations linked to the bullet payment option, such as financial penalties. The bullet payment (or single instalment) option is predominantly used at this time when a very limited number of contributors are entitled to rights.
In 2016, when the Government of Dacian Ciolos aimed at completing the private pension legislation, the pension funds managers came up with the idea of replacing the ownership rights with an annuity paid for an indefinite period of time.
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