​Mandatory private pension funds (level II) made approximately 153,000 payments to beneficiaries (participants and heirs) for a total amount of more than 2 billion lei in the period 2008-2023, and almost half of this amount (46%, i.e. 932 million lei) was paid only in 2023, according to the calculations of APAPR (Association representing the interests of administrators of non-state pension funds).

“Both the amount and the number of payments have experienced accelerated growth in recent years under the influence of an increase in the number of people who have fulfilled the conditions for withdrawing money, including as a result of legislative changes related to the rights of people with disabilities. pensions,” the Association emphasizes.

In accordance with current legislation, Level II makes payments to beneficiaries in three situations:

• 1) When the participant receives a decision on retirement at the maximum age from the state system;
• 2) When the participant receives a decision on retirement due to disability from the state system (regardless of the degree of disability);
• 3) In the unfortunate event of the participant’s death, a situation in which the assets accumulated by the participant in a personal account in Level II are paid to his heirs by law or by will.

In addition, the legislation provides two options: beneficiaries can receive money from Tier II in a single payment or in equal monthly payments spread over a maximum of 5 years (a maximum of 60 equal monthly payments).

The vast majority of those receiving Tier II payments were age pensioners, and a lump sum payment was the preferred way to receive the money.

Last but not least, Romanians are increasingly digitally connected to their personal Pilon II private pension account. At the end of 2023, about 1,060,000 members had an open online account on the administrator portal to be able to check their accumulated value, contribution history and other interesting information at any time.

Their number increased by approx. 190,000 during 2023, up 21% from 2022.

Also, more than 870,000 Pillar II participants (220,000 more than in 2022, i.e. 34%) asked the administrator to receive the annual information letter exclusively in electronic format, by e-mail, instead of a printed letter on paper.

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