Net assets on the mandatory private pension segment reached 6.04 billion lei (EUR1.38 billion) and the number of contributors reached 5.44 million at the end of October, according to the private pension system regulator CSSPP.
“With the introduction of the multi-fund system, contributors will choose, depending on their age and appetite for risk, a pension fund with a certain risk profile, which can be conservative, medium, or dynamic. Sums accumulated by contributors to Pillar II will be transferred to conservative funds 10 years before the contributor’s retirement to protect their savings from potential financial turmoil,” CSSPP head Mircea Oancea said Thursday.
Most of the nine pension funds operating the mandatory segment in Romania have low risk investment policies.
“Romania will introduce the multi-fund system in 2012 by amending Law 411/2004 which regulated private pension funds,” said Oancea.