A new business for insurers

Private pension payments will be made through distinct funds from those already operational. These funds will be established at the end of 2009, in accordance with a law on pension payment, said the President of the Private Pension System Supervisory Commission (CSSPP), Mircea Oancea.

"We will finalize the legislative framework next year. Now we have one chunk, accumulation funds, and we must develop the law for the payment of pensions, after which there will be a new authorization period," said Oancea.

When someone retires, he must opt for a payment fund to which all his assets will be transferred. The fund may belong to the same administrator or another. The new fund will operate the monthly pension payments and continue to invest the remaining assets.

The activity of funds that could be established by the end of 2009 will initially be lower, as these will take over only Pillar III (optional private pension) clients. The first wave of Pillar II (mandatory private pension) retirements will be paid only 15 years from now.

Business Standard