The Association for Private Pension Funds in Romania (APAPR), has receive the official confirmation from the Romanian authorities that the contributions level for the second-pillar retirement plan will remain capped at 2.5% of the contributors’ gross income and will raise by 50 basis points next year, to 3%, said Cornelia Coman, vice president of the Association.
“Romanian authorities have officially confirmed that the contributions to the pension plan will remain at 2.5% but will increase to 3% in 2011. This was the conclusion of talks between Romanian and international financial officials”, said Cornelia Coman (photo) at a seminar organized by the National Insurance and Reinsurance Companies Union (UNSAR).
The Ministry of Finance proposed recently a reduction in contribution levels from 2.5% to just 0.5%.
In February 2009, contribution level was frozen to 2%, but was raised this year by 50 basis points.
Second-pillar investors were projecting in May 2008 a 0.5% annual growth rate in contributions to 6% of contributors’ gross income.
