ASF: Through occupational pensions law, we lay foundations of Pillar IV of pensions in Romania

The law on occupational pensions, which transposes a European directive into the national legislation, lays the foundations of Pillar IV of pensions in Romania, set up at the initiative of the employer, said the Deputy Chairman of the Financial Supervisory Authority (ASF), Dan Armeanu.

''The Parliament approved on Wednesday, December 12, 2019, the draft law on occupational pensions, which transposes the EU directive 2016/2341, IORP II into the national legislation, thus contributing to the diversification of the universe of optional pensions, based on accumulation, with the occupational component. Thus, we align ourselves with the European practice regarding occupational pension funds and introduce a new element meant to strengthen the relationship between the employee - employer, materialized by an occupational pension scheme proposed by those employers who have the necessary financial capacity, for the benefit of their own employees," said Dan Armeanu, in a Thursday's release for AGERPRES.

He explained that, while the optional pillar III pension funds are focused in particular on the individual retail component, the occupational pension funds pillar IV are based on the corporate component, being set up at the initiative of the employer. He/she pays the contributions for all employees and represents the interests of the employees in the relationship with the administrator, who establishes and manages the occupational pension fund.

"The fact that an employer contributes to an occupational pension fund for their employees can be both an incentive and a retention factor, and in some cases it can regulate in favor of the employer the ratio between demand and supply on the labor market. Thus, occupational pensions can represent a true reference point in the relationship between the employee and the employer and a selection criterion of the employer, especially in the context in which the labor force is insufficient in some areas," said Dan Armeanu.