Administration fee for mandatory private pensions Pillar II cut to 1pct from 2.5pct

The administration fee for the mandatory private pensions Pillar II was cut to 1pct from 2.5pct, on Friday night stated the Prime minister's counselor for economic matters Darius Vâlcov, according to Agerpres

"As regards the pension's Pillar II, the contributions were not curtailed, as some television stations were announcing today (Friday, ed. n.). The contribution still is 3.75pct, and we all recall that last year when this contribution went down, everybody said that the incomes will be smaller. Of course, the gov't, being aware of what it was saying, anticipated that the incomes will be higher and after 11 months, the incomes from these contribution in 2018 were worth 7.06 billion lei, compared to 11 months of 2017, of only 6.52 billion lei. In other words, the average monthly contribution per each person was in 2017, of 153 lei, and in 2018 was higher, of 159 lei. Contributions were not cut, and yet the fees dipped, as follows: the 2.5pct administration fee that initially had to function for a period of up to 5 years was cut to 1pct, in the circumstances in which this 1pct will be shared among the private pensions' funds' administrators, namely 0.5pct, and the National Pensions House, 0.5pct, respectively" Darius Valcov told a news conference at the Victoria Palace (gov't seat, ed. n.).

The other fee worth 0.05pct per month was replaced with a fee that varies from 0.02pct per month to 0.07pct per month, depending on the fund's performance, Valcov added.

He explained that these funds were requested to reach a certain share capital, within one year time.