Only nine mandatory private pension funds to remain on the market

The Romanian mandatory funded pension market (Pillar II) will count only nine large funds after other mergers are concluded, following a consolidation process of the private pension market, the vice president of the market regulator CSSPP, Ion Giurescu declared, cited by NewsIn.

He mentioned competition would be much fiercer and participants would benefit from good results on the market.

The mandatory private pension market now counts 13 players, after the funds managed by Eureko and Bancpost merged.

Pillar II funds were to receive this year the first contribution of 2.5 percent of the gross average salary, but this year’s budget stipulates that the contributions should stay in the range of 2 percent.

Giurescu said contributions will not exceed 2.5 percent in 2010 as the agreement with the International Monetary Fund (IMF) foresees to get back the 0.5 percent in a year of economic growth.

However, under legal provisions, the contribution should add each year 0.5 percent until it reaches 6 percent of the gross average salary in eight years.

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