What do Romania's employers think of voluntary pension plans?
11.26% of employers surveyed during six editions of the Regional Private Pensions Forums in Romania stated that voluntary private pensions are optimal for use as a tool for motivation and retention of key staff - the percentage is otherwise identical to that of employers who have praised the efficiency of this savings instrument as "very high", shows a survey done by PRIMM Insurance & Pensions Magazine in six major Romanian regions.
57% of surveyed employers stated that voluntary pensions are quite effective in retention and motivation for their staff. All in all, a total of about 78% of employers surveyed have positive expectations regarding the results of their contribution, along with employees, in voluntary pension schemes (3rd pillar). A comparable percentage of the total, about 79%, represents the declared intentions of employers to grant (in 2008 or in years to come) voluntary pension scheme contributions as benefits for their staff.
However, the introduction of corporate contributions in voluntary pension schemes is somewhat delayed by employers - the most often cited reasons were financial, logistical difficulties or lack of information on such practical issues.
Thus, it is a decision delayed: employers acknowledge the effectiveness of voluntary pensions as a tool for motivation and retention of their staff, but postpone the decision to offer such benefits.
At the end of Julye 2008, over 117,000 Romanians had a voluntary pension (3rd pillar). The market consists of 8 funds, with total net assets under administration of 13 EUR mln. Two thirds of total contribution made so far came from employers and one third from employees. The system is not occupational, though - employers' contributions are also made on a voluntary basis. The system was started in June 2007 and is in full throttle to grow in the next period.
