Pension funds could collect 60m euros

Everyone up to 35 years of age will be required to contribute to the mandatory pension funds that are privately managed, as stipulated in the draft law modifying Law 411/2004 on privately managed pension funds. As it currently stands, the privately managed pension fund law stipulates that those required to contribute to such funds at the moment are individuals up to 35 years old that have become part of the mandatory insurance system for the first time and contribute to the public pension fund. Considering that there are about one million people aged 25-35 years throughout the country that are employed, the payment of 2% of the gross average salary of around 250 euros to the privately managed pension funds would see these funds obtain some 50-60 million euros in the first year of operations. The companies managing private pension funds will have to have at least 4 million euros in share capital, according to the draft law. The current minimum share capital requirement is 5 million euros. ZF