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March 24, 2023

Number of compulsory private pension funds down by half

The number of compulsory private pension funds (Pillar II), and, implicitly, of fund managers, ebbed by 50 per cent in the last two years, to nine, compared to 18 at the start of the system, in May 2008. The process is natural, though, the head of the Commission for Monitoring the Private Pensions System (CSSPP), Mircea Oancea, said. “Mergers that occurred are part of a natural process to consolidate the market of compulsory private pension funds, given that the law stipulates a minimum of 50,000 participants which needs to be reached in the first three years since the founding of the pension fund, to ensure its effective functioning and the safety of contributors,” Oancea explained, quoted by Mediafax. According to the latter, processes of consolidation also took place in other states where the system operates, such as Poland and Hungary.

On Pillar II, net assets at market level totalled RON 2.967 bln on March 31, and the number of contributors reached 5.004 millions. Moreover, contributions made in the first quarter of 2010 to the accounts of privately managed pension funds were of RON 325 M, 10 per cent higher than the last quarter of 2009.

Oancea reminded participants in the compulsory private pension funds to verify whether administrators sent their annual letters of information on the evolution of their private pension account during the preceding year.

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