Minister of Labour and Social Protection Violeta Alexandru and providers of private pension plans have been discussing for some time the return on investment rates offered by privately managed pension plans.
According to the head of the PM Chancellery, Ionel Danca, on Wednesday, the Government adopted the draft modifying Government Emergency Ordinance (OUG) 114 and supplementing some normative acts.
Romania's mandatory private pension funds had assets of over 55.15 billion lei on 30 June 2019, up 26.12 percent against the level recorded in the similar month of last year, according to data with the Financial Oversight Authority (ASF). Government bonds made up the largest share of the assets, namely 32.24 billion lei and a 58.46 percent share.
The mandatory private pension funds had assets worth more than 53.41 billion lei, on May 31, 2019, up 24.18 per cent against the same month a year before, according to data provided by the Financial Supervisory Authority (ASF). Government bonds hold the highest share among these assets, of 31.58 billion lei, 59.14 per cent respectively.
Mandatory private pension funds in Romania had assets worth over 52.26 billion lei on 30 April 2019, up 21.42 percent from the same level of the previous year, according to the Financial Oversight Authority (ASF) data. Government securities made up the largest share of the assets, of 30.06 billion lei, respectively 57.52 percent. Shares came in second, at 9.96 billion lei (19.07 percent).
The Government has decided a new way of calculating the minimum share capital of private pension funds, Minister of Public Finance Eugen Teodorovici announced on Thursday.
The Hungarian Democratic Union of Romania (UDMR) calls for the postponement of the entry into force of Emergency Ordinance (OUG) 114 until 2020, considering it needs amendments in relation to more than 40 points.
After Labour Ministry started to investigate the increasing debts run up by the State Pension Fund, PIOM, it rushed to repay its multi-million euro owings, private pension funds confirmed.
PIOM's debt burden had raised questions about its liquidity and the government's policy of annual pensions increases.