Premier Mihai Tudose said on Friday that talks about pension funds under Pillars I and II are advanced, adding that if thus the Romanians would be better off, the contribution to Pillar I will be increased.
"It's about deciding how to break down those amounts the Romanians pay to the two components which are both of state, only that one is privately managed. Half of the amounts are currently directed to Pillar I, and half to Pillar II. Yet [an analysis] found that the return under Pillar I, which has the nationwide average salary as a reference, is much higher than the return under Pillar II, and for this reason I asked the Ministry of Finance to proceed, together with pension scheme officials, to an analysis to see whether it is not appropriate to seize the opportunity now, in these years when economic growth is very high and the return on the Romanians' pension contributions is much higher under Pillar I, and increase transfers paid to Pillar I and lower those to Pillar II. Talks are advanced and the decision will be taken having in view the best interest of the contributors. As this is a contribution paid to a pool with a higher return, per capita pension funds will increase," said Tudose in the sea resort of Neptun, after the meeting of the Social Democratic Party's National Executive Committee.
The Premier assured that the government has no intention to dismantle pension Pillar II. "What was already accumulated there stays there, it's just that if this is better for the Romanians, we'll transfer more money to Pillar I," the PM said.
Agerpres..
Comentează