Romanian Military Personnel Must Join Private Pension Fund Within Seven Months

Romanian military personnel, police agents and special employees of the defense and prison administration systems will be required to sign up for a private pension within seven months, with the exception of agents with classified identities.

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After seven months, employees who have not joined a private pension fund will be distributed randomly by the National Pension House and sectorial pension houses.

This obligation has been introduced by the Government through an emergency ordinance, effective Tuesday evening.

Military personnel were included in the public pension system last year, but not in the private pension system (Pillar II), because of issues with the operation of sectorial pension houses.

The rate of contribution to mandatory private pensions will be raised next year from 3% to 3.5%.

Romania's mandatory and voluntary private pension funds control net assets in excess of 6.4 billion lei (EUR1.9 billion), and have around 5.7 million contributors.

(EUR1=RON4.3588)

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