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October 28, 2020
BUSINESS

Compulsory private pensions earn about RON 757 M to their beneficiaries

Compulsory private pensions (Pillar II) have earned their beneficiaries a net gain of approximately RON 757 M, in the three years that passed since the system became operational, according to data released Monday by the Romanian Association for Private Pensions (APAPR), reads a press release.

The compulsory private pensions system turns three years in activity this May. During this interval, pension funds have collected total contributions worth RON 4.3 bln and are managing now total assets of RON 5.06 bln, thus generating a net gain worth nearly RON 757 bln. During the same period, Pillar II funds registered an average yield of 14.1 pc (against an average annual inflation of 6.3 pc).

“At the level of a participant, a simulation that uses the average salary per economy and 36 months of contribution shows that, during these 3 years, the average sum contributed to Pillar II is RON 1,506 and the average gain is RON 246, equivalent to 16.3 pc of the contribution,” said Crinu Andanut, member of the APAPR Board of Directors, during the International Insurance-Reinsurance Forum (FIAR) 2011, quoted by Hotnews.ro.

According to data released by the Private Pensions System Supervisory Commission (CSSPP) last month, privately administered pension funds (Pillar II) reached 5.27 million contributors at the end of Q1 this year, of which 68.65 pc had in their accounts sums less or equal to the average sum per contributor in the system, i.e. RON 926 (EUR 225). A percentage of 39.28 pc of participants have accumulated less than EUR 100 in their accounts (including empty accounts), while 10.70 pc gathered at least EUR 500.

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