Pillar III private pension funds looking to major employers

Posta Romana signed the largest contract to date yesterday with ING Asigurari de Viata, for more than 10,000 of its employees, making the Dutch insurer the market leader following this deal.

Posta Romana pays an annual €200 into the account of each employee, which can be deducted prior to the profit tax payment. Another major company, which already has optional pension contracts, is aluminium producer Alro Slatina, which also pays an annual €200 for its 4,300 employees, but who did not divulge the insurer.

“In Romania, most employers prefer to increase salaries or offer salary supplements, such as meal tickets, one of the reasons being pressure from the employees who want to spend now. In Western European countries, employers offer financial supplements in the form of optional pension plans, which is part of a long-term strategy,” said Bram Boon, Director of ING.