August 25, 2017 / 10:11 AM / a year ago

Romanian government may cut private pension contributions

BUCHAREST, Aug 25 (Reuters) - Romania’s finance ministry and financial supervision authority were analysing whether to cut contributions to a mandatory private pension scheme starting next year, but a final decision has yet to be made, a government official said on Friday.

Romania overhauled its communist-era pension system in 2008, making it compulsory for working Romanians under 35 to contribute to a “second pillar” of private pension schemes as well as their state pension.

“Certain numbers are concerning to us regarding pensioners that have only accessed the second pillar,” Deputy Prime Minister Ion Marcel Ciolacu told reporters at a meeting of the ruling Social Democrats in the Black Sea resort of Neptun. “A decision has not been made, we’re still looking at the numbers.”

Just under 7 million people are contributing to second- pillar private pension funds, whose assets totalled 36.06 billion lei ($9.28 billion) at the end of June. The funds are some of the biggest investors in Romania’s relatively small markets.

$1 = 3.8847 lei Reporting by Luiza Ilie, editing by Larry King

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