CSSPP approved the norm on transfer of the voluntary pensions from a life insurance company to a mandatory pension company
The Private Pension Supervisory Commission (CSSPP) approved today the norm regulating the transfer of the private pension administration activity for voluntary pension (pillar III) from a life insurance company to a mandatory private pension company. The situation might bring together the private pension administration activities for several companies operating on both markets, the Dutch from ING being the first ones to announce their intent in this respect.
Mixed administration (both for mandatory funds and voluntary pensions) within the same company has the advantage of decreasing some administration costs, thus fostering a more efficient activity management. Only one company administers both types of private pensions for the moment - ALLIANZ-TIRIAC. Otherwise, four companies are operating on the voluntary pension market (ING Life Insurance, AVIVA Life Insurance, BCR Life Insurance and OTP Garancia), which are part of the financial groups also active in mandatory pensions.
In order to transfer the voluntary pension activity from the life insurance company to the mandatory pension one, the interested entities must notify their participants and obtain the agreement of the majority. In the 30 days from the notification, any participant to the fund/voluntary pension fund can transfer to another similar fund, without paying transfer penalties. Only then the activity transfer can take place, according to the legal provisions. The relevant normative act shall be published in the Official Gazette and shall enter into force only on the publication date.
