The Senate rejected the proposal of minimum guaranteed return for mandatory pensions equal to inflation
The senators rejected the legislative proposal to set up a minimum guaranteed return equal to the annual inflation for the mandatory private pension funds (pillar II), according to the data published on the Senate’s site. The Senate expresses this opinion following the Government’s negative opinion on this proposal, and the legislative initiative was submitted two days ago for debate in the specialized commissions from the Chamber of Deputies.
The legislative proposal, initiated by ten MPs in December last year, is intended to eliminate the mandatory character of pillar II and establish a minimum guaranteed return for the funds on this market, equal to the inflation. The proposal was not well received by the private pension industry from the very beginning, including here the official voice of APAPR - the Association for Privately Managed Pensions from Romania.
If applied, the provisions would completely change the philosophy of the current mandatory private pension system. This is actually the reason why the legislative proposal was rejected by both the Government and the Senate, as well as by the companies from this market. In the near future, it shall be debated upon in the specialized commissions from the Chamber of Deputies and then voted in a plenary session.
