He said the government will also eliminate the option to halt contributions to the mandatory private pension system (Pillar II) and contribute solely to the public pension system (Pillar I).
“The private pension system has suffered shocks. We will correct them. 540 contributors have opted to transfer their contributions from Pillar II to Pillar I,” Citu said at a conference on pensions.
Starting March 2019, Romania’s Pillar II contributors were given the option to direct all their pension contributions to the public system.
Net assets managed by Pillar II funds stood at RON55.14 billion at the end of June, 26.15% higher compared with June 2018. The system had 7.34 million contributors, 1.26% more than at the end of 2018. Pillar II funds had investments of RON9.9 billion in shares of companies listed on the Bucharest stock market at the end of June, 34% more than at the end of 2018.
Romania has a three-pillar pension system consisting of public pensions, mandatory private pensions and voluntary private pensions.