The mandatory private pensions system generated net earnings of some EUR 230 million since its launch four years ago, according to the Association for Privately Management Pensions (APAPR). The amount was calculated as the difference between the net assets managed by private pensions fund in Romania and gross contributions paid on behalf of beneficiaries.

“The private pensions system in Romania continued its positive evolution and consolidation in the first quarter of 2012. The slight revival of financial markets and the stabilization of economic perspectives led to notable investment performances for pension funds, which added up to the good results in the past. Overall, the second pillar brought over RON 1 billion in gains for participants, a profitability rate of over 16.1 percent,” said Cornelia Coman, president of APAPR.

As many as 5.6 million Romanians contribute to the mandatory private pensions, in a system, which managed assets of some EUR 1.7 billion, the equivalent of 1.27 percent of the country's GDP. The system also includes a third pillar, of optional private pensions, which has 270,000 contributors. Assets managed by optional pensions funds stay at some EUR 100 million.

The share of contributions to the private pensions’ Pillar II was expected to increase from 3 percent to 3.5 percent in March 2012, and up to 4 percent in 2013

The average yearly yield of the mandatory private pensions was of 12.2 percent since launch in May 2008. The average yield on the optional private pensions segment is of 7.8 percent.

editor@romania-insider.com