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PM Tudose: There are three options for Pension Pillar II

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Prime Minister Mihai Tudose said Tuesday for ‘Romania TV’ private broadcaster that there are three options regarding Pension Pillar II, to keep it as it is, to diminish the share of contributions to Pension Pillar II or to allow citizens to opt for the desired alternative, romaniajournal.ro informs.

“Three variants: keep it as it is and only to change the commissions charged today by the private administrators – because, I repeat, they are exaggerated – the second variant to diminish the share of contributions to Pension Pillar II in favour of Pillar I and the third one – make it optional. They are to be presented by the Ministry of Finance when they will be ready (…) Next week, we will have the simulations completed,” Prime Minister Mihai Tudose said for Romania TV.

Referring to the third variant, Tudose said: “If you want to keep it as it is, it’s OK. If you want to have more money in Pillar I (…) you have the option.”

Last Friday PM Mihai Tudose confirmed the Executive’s intention to cut contributions to Pension Pillar II, saying that, according to the Finance Ministry, “the return of the Pension Pillar I is higher than the one obtained by the Pillar II” and that for this reason he asked for a review of the opportunity to diminish the contribution committed to the privately-managed funds.

“As it is a contribution committed to a zone with a higher return, the funds for every Romania’s pension will rise. It’s a way to increase the pension in the future (…) We found out that the state is a better administration in this respect,” the premier argued.

On the other hand, Tudose denied allegations that the Gov’t would plan to nationalize the Pension Pillar II.

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