“The percentage is higher than in other European countries. For instance, in Poland, this is 15 percent. The limit is necessary to ensure that there is no overly high market concentration, which would not be in the best interest of the insured,” according to a statement for Business Standard by Vice President of the CNS Cartel Alfa trade union, Petre Dandea.

The draft law was submitted for public debate by the Private Pension System Supervisory Commission (CSSPP), with the deadline for opinions on proposed changes set at 21 March 2008. The document also regulates participant subscription to mandatory pension funds, at the conclusion of the initial subscription campaign. The new draft law was approved on Wednesday by CSSPP, and can be found on their website.

Random allocation will continue following the initial subscription campaign. Dan Pescaru, Deputy General Manager of CSSPP, said that the subscription law specifies the technical procedure, including obligations of the administrator, when information regarding subscribers needs to be submitted, the manner in which the National Pensions and Other Social Insurances Rights House (CNPAS) will take over this information, etc.

The Government rejected the proposed change made by trade unions about equal random allocation among the 18 funds, as opposed to proportional to market share. However, trade unions carried on, demanding changes to the system, and Dandea indicated that the Prime Minister has agreed to the idea of the blocking of the allocation system until the Competition Council resolves the issue.