Pension draft reaches Parliament

Banks and insurers, but also financial service companies or investment management companies, which are yet to be established, all of them will be allowed to manage the first private pension funds in Romania, according to the bill on occupational pensions, enacted by the Government at the end of last week. The occupational pension funds will be built on contributions periodically paid by both employees and employers. The above-mentioned institutions will be allowed to manage such funds if they have at least 10 million euros in share capital and if they were endorsed by the Insurance Supervision Commission for expanding their operations in this field first. The draft specifies a specialised department within CSA will monitor the operation of the funds and the administrators. CSA’s involvement comes as a surprise, though. The previous versions of the draft stipulated a Pension Fund Supervision Commission was to be established for this particular purpose. ZF