The Financial Supervisory Authority (ASF) Council has decided on Thursday to sanction NN Pensions (Pensii) by RON 750,000 – i.e. 1% of the company’s share capital, considering the circumstances of impairing the participants in the private pension system’s confidence, said on Thursday the ASF Vice-president Ion Giurescu. This is the largest fine in the history of ASF, he said.
The ASF management also decided to fine by RON 100,000 and to withdraw the license of General Manager Raluca Tintoiu, Head of NN Pensions and of NN Life Insurance.
Checks will be also conducted at BCR Pensions, whose general manager, Radu Craciun, published on his blog an opinion on the risks of nationalizing the private pensions.
“We’ll conduct checks at BCR Pensions as well, but there President (Radu Craciun) spoke on his behalf, did not inform the members and participants. It is something quite different,” Ion Giurescu said.
NN Pensions sent on Tuesday a letter to its customers by which they were informed that in recent weeks there have been discussions about a possible decision to nationalize the private pension funds and urged them to continuously monitor what is happening to their pension.
In a press release issued later, NN Pensions representatives claimed the content of the letter sent to the clients is for informational purposes only and it is not a warning. The need for this information came in response to requests for clarification from our customers due to public discussion lately about the future of the pension system. This communication was given in the context that NN sends monthly over 300,000 emails to its customers, which include information on the situation of their individual pension account, each time new amounts are added and annually it sends about 1.9 million letters.
PM Grindeanu threatens with ‘legal actions’
Prime Minister Sorin Grindeanu has threatened on Thursday with ‘legal actions’ against NN in this scandal, adding that those who are sowing distrust should pay.
Grindeanu claims “the scandal started from a political competitor, Mr. Predoiu. I am disappointed by this means of conducting politics. In fact, this kind of means was sanctioned by Romanians at the elections last year.”
The Premier added: “those who bring such issues publicly and sow distrust should pay.” He underscored these are not issues to joke about, as the Finance Minister repeatedly said it is a rumour, an absurdity.
PNL’s Predoiu warned that the nationalization of private pensions was being discussed
Liberal deputy Catalin Predoiu warned at the end of last week that the executive is discussing the issue of nationalizing the private pensions in order to cover the budget deficit, adding that it is a ‘financial crime with known perpetrator,’ following the pattern set by Hungary and Poland. This could lead to halving the pensions in 2040, Predoiu said at the time.
“The Grindeanu-Dragnea government is discussing backstage the nationalization of private pensions to cover the budget deficit skidding,” Predoiu said in a press release issued by PNL. The Liberal deputy explained that the nationalization of private pensions would have the effect of lowering pensions from 30% to 17% of the average wage in 2040.
“The consequences for millions of Romanians would be dramatic. To get the picture, the average pension in 2016 was RON 931 and the average wage of RON 3,131. So, the average pension is about 30% of the average wage. If Pillar II is confiscated, then the average pension will represent only 17% of the average wage, meaning that currently one should live with a pension of RON 532,” Predoiu said.