Zepter to sell its pension fund

“It is logical that it be sold or closed, as will probably happen with the other seven or eight companies whose mandatory pension funds did not attract sufficient subscribers,” said the quotes sources for Business Standard. The private mandatory pension fund administered by Zepter attracted less than 2,000 subscribers, according to NewsIn. The fund cannot be sold as such, but rather only with the administration company, according to regulations. The company’s evaluation starts with accession campaign expenses, estimated at €150 per subscriber. “Furthermore, the amount of €150 per subscriber is logical, in light of the amounts paid to brokers,” added the quoted sources.

The Private Pension System Supervisory Commission (CSSPP) is presently holding talks with pension fund administrators on conditions for possible mergers. Mandatory pension funds must have at least 50,000 subscribers in three years, and it will be challenging for those who are far from that threshold to meet this. The random distribution of the some 500,000 individuals who did not voluntarily sign up for a mandatory pension fund will be proportional de market shares obtained to date by the funds.

There are 18 pension funds activating on the Romanian market, with ING dominating, with 30.07 subscribers, Allianz-Tiriac, with over 25 percent, and Generali with some 10 percent. In 2008, contributions into the system will amount to €300 million.