Government to decide on mandatory private pension "lottery"

However, the government cannot make decisions that would not be equitable, such as banning certain administrators from the random assignment of citizens who need to chose a pension fund, Pacuraru added.

His statement comes amid fierce disputes between pension fund administrators and trade unions on the so called "lottery" of the mandatory pensions administrated by private funds. Following the enforcing of a new pension system, all employees under 35 were compelled to subscribe to a mandatory private pension fund, while those aged 36-45 had the option to do so.

Those who failed to subscribe by January 17 will be randomly allocated to the pension funds. Controversies arose, however, on the way this distribution should be made and on the funds that should participate in the reallocation.

The current legislation states that the random distribution will be made proportionally, based on the market share secured by each fund during the subscription campaign. However, trade unions asked that each of the 18 pension funds administrators are allocated an equal number of subscribers.

Furthermore, representatives of fund administrators said the market leaders should be excluded from the "lottery", as they already have a significant market share.

Following a debate on the issue yesterday, proposals to change the legislation will be analyzed by the Labor Ministry, the National House for Pensions and Social Security (CNPAS) and the Commission Supervising the Private Pensions System (CSSPP). The thee institution will draft a report in a few days and submit it to the prime minister's office, Pacuraru said.