“Wishing to represent and protect the interests of all parties involved in the private pension system in Romania, we publicly call on the prime minister to meet with us as soon as possible to discuss the results of the government’s analysis of the pension system and the impact its potential future decisions would have on the 7 million participants in the private pension system,” the organization said.
Prime Minister Mihai Tudose said earlier on Friday he called for impact studies on lowering social security contributions to mandatory private pensions after the finance ministry said state pensions have better yields.
Romania’s government is considering lowering the share of social security contributions that go to mandatory private pensions, saying state pensions have better yields. Previous governments have repeatedly frozen contributions to mandatory private pensions.
Also Friday, deputy prime minister Marcel Ciolacu said the government would decide what to do about mandatory private pensions, saying analysis of the financial supervisory authority ASF and of the finance ministry showed “concerning figures”.
“We’re looking at the numbers for Pillar II, which are concerning. I think that money can be managed better. This is not a brutal entry by the state but a matter of efficiency, a decision in favor of contributors,” the government official said.
ASF said in response the mandatory private pension system is solid and has positive yields.