Romania's Government creates legal framework for occupational pensions

Romania’s Labour Ministry drafted a law that allows employers to set up occupational pensions for their employees, newly-appointed labour minister Marius Budai announced. The occupational pensions are designed as supplementary pensions, a benefit that employers can offer, he explained, according to local Agerpres. The law is aimed at implementing the EU Directive 2016/2341 of the European Parliament endorsed by the European Council on December 14, 2016 for the supervision of the specialised occupational pension funds managers. One or more employers can set up an occupational pension fund, managed by a specialised pension fund manager. The system is voluntary: employees can not be constrained to make contributions to the occupational pension fund. The employees can decide to move their account from one occupational fund to another, or to a voluntary pension fund (Third Pillar) at no cost. The contributions will be deductible for income taxation purposes within the limits set under the Fiscal Code -- the same limitations that apply for the voluntary pension funds (Third Pillar) currently set at EUR 400 per year. Romania’s Parliament passes controversial pension law editor@romania-insider.com (photo source: Shutterstock)