Romanians may quit Pensions Pillar II as of today

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The citizens who contributed to the Pension Pillar II can request the state, as of today, to cease paying the monthly contributions to the pension administrator, according to a law voted by the ruling coalition.

The money may be paid to the state pension fund (Pension Pillar I). Over 7 million Romanians paid contributions in January to the Pension Pillar II. The seven pension funds had assets of RON 48 billion, most of the money being invested in state bonds, digi24.ro informs.

The Financial Supervision Authority (ASF) has posted in the Official Gazette a norm on the way to implement the provisions of Emergency Ordinance 114 on the Pension Pillar II contributors’ option to give up participating to this pillar. In order to withdraw, the participants must have at least five years of contributions.

In the 5 years when the contributions were paid, funds have accumulated that are to be paid when reaching the pension age. If the citizen chooses to leave the Pension Pillar II, the entire fund will go to the public pension system.

It remains to be seen how many people will choose to leave the Pension Pillar II.

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