“This decision will affect the assets of Pillar II funds, which will remain low. The system needs backup to become efficient, but we had the bad break with this year of crisis. We will try to negotiate measures with the government to balance this decision,” said Mircea Oancea, President of the Private Pension System Supervisory Commission (CSSPP).
“The mandatory private pension system was created with a sole purpose - a decent pension for millions of Romanians in the present generation of employees. The measure to freeze contributions in 2009 defies this purpose and harms the right of young people today to have a decent pension tomorrow,” indicated the Association for Private Administered Pensions in Romania (APAPR).
The President of this association, Crinu Andanut, said that APAPR will fight back hard internationally, as “the measure affects the business plans of large international financial companies, which invested over half a billion euro in Romania in the past two years in the mandatory private pension system alone.”
If future retirees lose total contributions this year worth some €80 million, the fund managers will lose some €3 mln. Most of these managers expected to reach the breakeven point in 8-10 years from the launch of the system, if the law remains unchanged.
