Labor Minister: Pension Pillar II unchanged, 0.5 pct of money transfer fee directed to Pension Office

The new Pension Law doesn't provide for any change of Pillar II (mandatory private pension fund, ed. n.), but 0.5 pct of the fee charged by companies in this sector will be directed to the National Pension Office, Minister of Labor and Social Justice Lia Olguta Vasilescu told a press conference on Friday.

"The only change that envisages Pillar II is about the transfer percentage. The companies currently charge a transfer fee of 2.5 percent. As of now, the National Pension Office will keep 0.5 percent of this fee because it's the one that does all the work with money collecting, transferring it further, as well as all the paperwork, it's normal for it to charge at least 0.5 percent. The way I see it, a higher percentage would have been fair," the LabMin said.

Vasilescu stressed that pensions under Pillar II will not be affected whatsoever, nor will the 3.75 percent contribution be changed.

In connection with the possibility, for people collecting the minimum guaranteed pension, to opt for welfare allowance, she also assured that what is being pursued is that nobody stands to lose money after recalculation.

"The pension of those who contributed for less than 15 years will be recalculated and if figures show that they would collect a lower pension from contributions, we will automatically switch to welfare allowance, according to the principle that the rule shall apply that best favors the respective person. For instance, people with 15 or 20 years of contribution get, according to calculations, a pension of 500 lei, whereas the minimum welfare allowance is currently 640 lei. So by default, although they are entitled to be in the pension system - that is in the social security budget - they qualify for a supplement. Taking the opposite case, there are people who - according to calculations - should collect a pension of 200 lei (according to the contributed amount), but they are granted 640 lei. So, nobody stands to lose," the Minister said.

Vasilescu added that moving back any deadlines provided for by the law, in the event that budget collections are not as expected, is not an option given that wage and pension disbursements are a priority.AGERPRES(RO - author: Florentina Cernat, editor: Oana Tilica; EN - author: Simona Klodnischi, editor: Maria Voican)