The number of empty accounts in the mandatory pensions system down by 300,000 in three months
The number of accounts left empty (without contributions transferred) after three rounds of contribution collection for Romania's mandatory pension funds (2nd pillar) is only 662,000, meaning 300,000 fewer than the initial figure of 961,000 collected, according to an analysis by the portal www.privatepensions.ro, based on data by CNPAS (the National House of Pensions) and CSSPP (Romania's private pensions regulator).
Thus, the number of empty accounts has decreased by 300,000 in just three months, and the number of participants from private pension funds which have received at least one contribution in the three rounds of collection has exceeded 3.5 million. The share of empty accounts in the total number of 4.2 million participants in the system was thus reduced from 23.1% at the start of the system to 15.9% after only three months. The collection ratio consequently increased from 76.9% to 84.1%.
The situation represents a significant improvement on the market. Just to make an idea, the Polish mandatory pensions market, with which Romania is always compared, now has a collection degree of 94% (only 6% empty accounts), almost ten years from the start of the system in 1999. Poland began in 1999 but with a degree of collection under 70% (over 30% empty accounts) and reached 80% just three years after the start (20% empty accounts).
Turning back to the Romanian market, the share of empty accounts in the total number of participants is one of the most important indicators of the quality of portfolios acquired by mandatory private pension funds. After three months of collection, the funds with the smallest share of empty accounts are ING (13.3%), BANCPOST (13.4%), AIG (13.4%), BRD (14.8%), ALLIANZ - TIRIAC (15.6%), BCR (16.2%) and OTP (18.2%). In other words, the quality of the portfolios of these funds is above the market average from the perspective of the empty accounts.
