The initial contribution to the fund will be made by private pension fund administrators and pension providers. It represents the equivalent of 1% of the minimum law-regulated share capital required to be licensed as private pension administrator and pay private pensions. The minimum share capital needed by administrators of mandatory private pension funds (Pillar II) stands at EUR4 million. On the voluntary private pension segment (Pillar III), administrators need a minimum share capital of EUR1.5 million.
Authorities have not yet set the minimum share capital needed by pension providers.
Law 187/2011 on the organization and operation of the private pension guarantee fund has been published in the Official Journal and will take effect in three days, said CSSPP.
After the law takes effect, private pension fund administrators and pension providers have six months to pay the first contributions to the fund. The fund will operate starting the second half of 2012, reads the press release.
The guarantee fund is meant to protect the rights of contributors to and beneficiaries of private pension funds.
Private pension fund administrators and providers will cover the costs needed to operate the guarantee fund, with contributions from their own resources.
The fund’s financial resources will be placed in bank deposits, state treasuries, and other low-risk instruments.