Labour minister Lia Olguta Vasilescu announced that the decision of the government is taken, meaning that the Pension Pillar II should be optional. „This option is undoubtedly nailed. Meanwhile, I found out with total stupefaction that I am also registered to the Pension Pillar II as contributor, considering that I was absolutely convinced that, giving the age limit at that time, my request filed at the Chamber of Deputies had been considered. But it was not considered, yet for ten years, I haven’t received any notification related to the value of the fund units that I had (…), under these circumstances I would like to choose between pension pillar I and pension pillar II. I think anyone should have this right,” the minister told Romania TV private broadcaster.
She also announced that a clear presentation of the pension pillar II will be made to inform the citizens during this summer.
„We are not nationalizing the pillar, but we’ll clearly explain to all the contributors to the pillar II how much will be their pension, for people have expectations,” Labour minister said.
PNL: The optional Pension Pillar II is the first step to disband it
In retort, the National Liberal Party spokesperson, Ionel Danca, has stated that the Labour minister’s announcement on the optional Pension Pillar II is just the first step out of those five taken by PSD-ALDE that will lead to the abolition and the nationalization of Pillar II.
„Pension Pillar is not officially abolished. However, as we said before, this optional system is part of the PSD-ALDE five-step plan that practically leads to the abolition of the pillar II and its nationalization. The first step was reducing the contributions to the Pension Pillar II. Now they are openly talk about an optional mechanism that might be accompanied by the suspension of the payments during the time when you have to choose. Then, they will set a fix contribution, plus the drastic cut of the management fee that will make this activity unprofitable. And finally, the private administrators of the pensions will withdraw and the state will be a „savior” and nationalize the contributions. PNL ask Romanians to sign the petition for the increase of the contributions to the Pension Pillar II to 6 percent in the first stage, according the legislation in force and then to 8 percent, according to the PNL proposal”, Danca stated.
President Iohannis: It’s the beginning of the end for Pillar II
In turn, President Klaus Iohannis expressed a similar position, saying that the announcement on changing Pillar II is the beginning of the end, which would force the Government to explain and to conduct a clear analysis.
“It is a very bad development and it leads to lot of concern, mainly for the younger employees who pay contributions to Pensions Pillar II. People hope the private administration will be an alternative to the state pension or a supplementary one. PSD admits it wants to change issues about Pillar II, it is bad news. It’s the beginning of the end for Pillar II, because they will convince people not to pay contributions to Pillar II, but to Pillar I,” the President said on Wednesday.
The head of state argues that analysis and public explanations are needed in order to change Pillar II.