PSD Labor Minister Marius Buday was asked on Friday about the changes prepared by the OIG to the second level of pensions, regarding the reduction of some commissions collected by pension fund administrators, and whether the government is now thinking about nationalizing the pension fund. money from this system.

• “The Minister of Labor has no authority here. The Department of Labor’s Tier II responsibilities are only to transfer amounts of money to private administrators and compile those lists of amounts of money.
• I received from ASF that there are specialists, the text that you see in the public transparency. Everything was written to you. There was no addition in the Ministry of Labor and the Government. The ASF does not have the possibility, according to the law, of a legislative initiative, and then it should be taken upon itself and brought to the consideration of the Government.
• I also spoke several times about nationalization, Prime Minister and PSD President Marcel Čolaku also answered, we do not discuss such things. It’s just a discussion by some people who want to be heard on television.” – answered Minister of Labor Marius Budai.

Proposed changes to the II and III level of pensions: the UDR accuses the Government of carrying out “expulsion of administrators” and “confiscation of money”

​The USR asked the Căuși government on Wednesday to abandon a draft emergency decree aimed at abolishing commissions charged by pension fund administrators on contributions paid by 7.8 million Romanians in the second level of pensions (mandatory private pensions) and the third level ( optional private pensions). pension).

The USR claims that the GEO project submitted for discussion by the Ministry of Labor includes “harmful changes to level 2 pensions, which aim to abolish it by expelling the administrators of the level from Romania and confiscating the money by the state”.

What the draft emergency decree provides: reduction of commissions and new sanctions

This was reported by HotNews.ro on TuesdayThe government wants to eliminate commissions pension fund administrators are collecting contributions paid by 7.8 million Romanians to Level II pensions (mandatory private pensions) and Level III (optional private pensions) on the grounds that this would lead to an unjustified reduction of private pensions, according to the draft GEO, launched in agreement with the Ministry of Labor.

Currently, the revenues of 7 private pension administrators managing assets are just over 92.4 billion lei on pillar II they come from the commission for the management of these assets, which consists of 2 sources:

• a) deducting the amount from the paid contributions, but not more 0.5% and
• b) deducting a percentage from the total amount of net assets of a private managed pension fund, but not more than 0.07% per month.

At the third level of pensionsthe asset management fee also consists of 2 sources:

• a) deducting the amount from the paid contributions, but not more 5%provided that this deduction is made before the contributions are converted into fund units;
• b) deduction of a percentage from the total amount of net assets of a voluntary pension fund, but no more 0.2% per monthestablished by the prospectus of the optional pension program.

According to the ASF, they were in Pillar III 577,000 members at the end of March 2022, and the total value of net assets of voluntary pension funds on the specified date exceeded 3.3 billion lei.

The Ministry of Labor launched on Monday draft ordinance on emergency situations which proposes the abolition of one of the two sources of income, namely the fee applicable to contributions paid to both Tier II and Tier III pensions.

What motivates the event?

• “The current regulation of the administration fee charged by administrators of private pension funds consists of two sources, both paid by members of private pension funds, creates an unjustified reduction in the private pension to be received at the end of the contribution period. “, it is shown in the GEO project.

Practically, the GEO project will change both Law 411/2004 (which targets component II) as well Law 204/2006 (Pension Level III), so that the administrative fee is formed only by deducting a percentage from the total assets of the pension fund.

HotNews.ro previously wrote that last year 7 administrators received an income of more than 577 million lei from the two types of commissions applied in Level II.

Of this amount, only 48.5 million lei was collected from the commission on paid contributions.

• Read more: The main changes in pension levels II and III: reduction of commissions and new fines. The right to claim payment of a private pension will always remain valid