Share of contributions to private pensions' second pillar set to rise this year in Romania

The share of contributions to the private pensions' Pillar II is expected to increase from 3 percent to 3.5 percent in March 2012, and up to 4 percent in 2013, according to the Association of Private Pension Funds in Romania (APAPR). Moreover, the law on private pension payments and law on occupational pensions may be adopted this year. Pillar II is expected to have a total of 5.85 million participants, compared to 5.52 million at the end of 2011. The value of the net assets, managed by the nine mandatory pension funds, are expected to increase by 45 percent compared to the level of 2011, to a total amount of around EUR 2.1 billion ( RON 9.3 billion ). Pillar III will reach a total of 300,000 participants, from 260,000 in 2011. Net assets, managed by the eleven mandatory pension funds, will reach about EUR 129 million ( RON 560 million ), up 29 percent compared to 2011, according to APAPR’s forecast. Moreover, the state employees from the military might be integrated into the mandatory pension funds. The draft law on the payment of private pensions has been finalized and is expected to be adopted by the Government. Irina Popescu, irina.popescu@romania-insider.com (photo source: Sxc.hu)