The draft law on private pensions could be back on the government's agenda

The draft law on the private pension system could be back on the government's agenda next week.

The draft is under public debate on the website of the Ministry of Labor and is considered a priority.

The President of the Financial Supervisory Authority, Alexandru Petrescu, stated that the document proposes the introduction of private pension payment funds, established specifically for this purpose.

These will be administered by authorized entities called private pension providers.

Regarding payments, there are several options, but not the option of withdrawing the entire accumulated amount, as before.

The over 9.3 million participants in the private pension system, who knew that after the retirement decision arrived they could opt to withdraw the entire accumulated amount, found out that this option would no longer be valid, since the new draft law, prepared by the Ministry of Finance and the Financial Supervisory Authority, only allows the withdrawal of 25% of the money and the rest in equal installments, over ten years.

Financial Supervisory Authority President, Alexandru Petrescu: There is no pension fund anywhere in Europe where you can withdraw all your money. All pension funds have a transitional period, because it is the accumulation period.

This bill could be discussed again by the Government this week, especially since the president of the ASF, Alexandru Petrescu, said that the bill is a necessary and priority step, as it completes the legislative framework on the matter. In addition, it is also a recommendation from the OECD.

Translated by: Radu Matei