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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Romanian regulator still working on exit rules from private pension funds

The department in charge of the private pension sector within Romania's financial market regulator ASF is working on several alternative scenarios for retired recipients of private pensions, but the decision will eventually be political, the Economica.net reported quoting sources familiar with the topic.

There is currently no exit regulation for those retiring from private pension funds.

Meanwhile, the number of pension fund accounts terminated before the legal term, for particular reasons, rose to 5,200 in 2019 from 3,500 in 2018. The aggregate value of the closed accounts doubled to RON 77 million (EUR 16 mln). The recipients are mostly people retired before the legal term and heirs of dead contributors.

Meanwhile, the first contributors to Pillar II with full contribution term will retire in 2024, and the complete regulations should be ready by that time.

One of the possible scenarios envisaged by ASF, which local lawmakers also discussed in 2016, regards an annuity paid to the recipient - in fact, a quasi-annuity since it would be paid for a maximum period of 15 years.

The annuity to be proposed to the pension fund subscribers will not be related to the past cumulative contributions, Economica.net says. Still, it is likely that the annuity will be based on the funds accumulated by the contributor corrected with actuarial factors, probably including the age and health conditions, among others.

At the end of June 2020, 5.36 million participants (72% of the total) had less than RON 10,000 (EUR 2,000) in their private pension accounts, while 2.08 million participants (28% of the total) had more than RON 10,000. Of these, only 0.58 million participants (7.74% of the total) had over RON 25,000 (EUR 5,000) in their accounts.

[email protected]

(Photo source: George Oprea/Dreamstime.com)

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Romanian regulator still working on exit rules from private pension funds

The department in charge of the private pension sector within Romania's financial market regulator ASF is working on several alternative scenarios for retired recipients of private pensions, but the decision will eventually be political, the Economica.net reported quoting sources familiar with the topic.

There is currently no exit regulation for those retiring from private pension funds.

Meanwhile, the number of pension fund accounts terminated before the legal term, for particular reasons, rose to 5,200 in 2019 from 3,500 in 2018. The aggregate value of the closed accounts doubled to RON 77 million (EUR 16 mln). The recipients are mostly people retired before the legal term and heirs of dead contributors.

Meanwhile, the first contributors to Pillar II with full contribution term will retire in 2024, and the complete regulations should be ready by that time.

One of the possible scenarios envisaged by ASF, which local lawmakers also discussed in 2016, regards an annuity paid to the recipient - in fact, a quasi-annuity since it would be paid for a maximum period of 15 years.

The annuity to be proposed to the pension fund subscribers will not be related to the past cumulative contributions, Economica.net says. Still, it is likely that the annuity will be based on the funds accumulated by the contributor corrected with actuarial factors, probably including the age and health conditions, among others.

At the end of June 2020, 5.36 million participants (72% of the total) had less than RON 10,000 (EUR 2,000) in their private pension accounts, while 2.08 million participants (28% of the total) had more than RON 10,000. Of these, only 0.58 million participants (7.74% of the total) had over RON 25,000 (EUR 5,000) in their accounts.

[email protected]

(Photo source: George Oprea/Dreamstime.com)

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