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February 2, 2023

ING and Allianz pension funds excluded from random distribution of eligible persons

The compulsory private pension funds (Pylon II) which hold a share of 20 percent of the number of participants will be excluded for a period of two years from the random distribution of the persons eligible to join this system, according to a norm approved on Friday by the Commission which monitors the private pension system (CSSPP), Agerpres informs.

Presently, of the 12 pension funds which operate in Pylon II, only two – ING and Allianz – have shares of over 20 percent of the number of participants. The norm becomes applicable on January 1, 2010, and for the other funds the random distribution (of the eligible persons who do not opt for a pension fund) will be made proportionally to the number of eligible persons validated in the respective month during the validation process.

“We stress that the modifications proposed in connection with the random distribution make allowance for considerations connected on the one hand with the encouragement of the effort made by those administrators who get actively involved in attracting new participants, and with their information about the private pension system, and on another hand, to avoid the risk of concentration of the participants in certain funds,” reads a CSSPP press release remitted by Agerpres. According to the estimates about the new participants who enter this system, only 20 per cent of those who adhere to Pylon II opt individually, while the remaining 80 per cent enter the “lottery” of the random distribution. The total number of the adherents to the compulsory private pension funds reached 4.86 M employees at the end of October, 328,000 participants (seven percent) more than at the end of 2008.

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