In order not to pay CASS for private pension if you are on a loss, insurance distributors have a proposal

The National Union of Intermediation and Insurance Companies (UNSICAR), the representative organization of the insurance distributors in Romania requests the modification of an article of the Fiscal Code that clearly establishes that the CASS calculation base due to the private pension is only the net profit obtained, not the entire amount of the individual pension account. Currently, over 900,000 Romanians contribute to optional and occupational pension funds.

Currently, one of the most intensely discussed fiscal measures that enter into force from August 1, 2025 is the payment of the health contribution including for pensions in the private administered system (Pillar II and III). The 10% contribution is paid for the receipts that exceed the ceiling of 3,000 lei, according to the Law on some fiscal-budgetary measures, published in the Official Gazette no. 699.

The founder aboutpensiiprivate.ro, George Moț, also reacted on the LinkedIn account, showing that the mechanism can be considered a double taxation by the state.

“For example, if you have contributed 30,000 lei, but in the end your account is worth only 28,000 lei, it does not mean a loss of 2,000 lei. Because the state will charge you with CASS to the total amount (28,000-3,000)*10% = 2,500 lei. Which means that in the end you will actually receive only 25,500 lei.

Not only that! The income from private pensions is composed of the contributions you pay plus the possible win (or loss). And the contributions you have already made to your pension fund come from income that you have already paid CASS. And at the payment of the private pension you will pay again CASS on the same amounts. I mean double taxation! ”Says Moț.

Thus, Unsicar proposes that:

• For unique payments, CASS should only apply to the value that exceeds the net contributions of the participants.
• For staggered payments, the same principle to apply for each monthly rate, with the application of the non -taxable ceiling.

This approach is consistent with the current income tax regime, where only the earnings are subject to taxation, not the initial capital, say UNSICAR officials.

The approach is taken with George Moț's technical support, the founder of the platform onpensiiprivate.ro with over 15 years experience in the field.

The approach comes in the context of introducing art. 157^6 of Law 141/2025 on some fiscal-budgetary measures, which, in its current form, generate a double taxpayer taxpayers' taxation for these forms of long-term saving-an approach that Unsicar considers unfair and non-aligned to fiscal practices applicable to other forms of investment or saving.

“The optional and occupational pension system is an important pillar of the financial security of Romanians and the state budgetary stability. The full taxation of the accumulated amounts, including the contributions already previously taxed, not only discourages the responsible saving, but creates a clear fiscal discrimination from other types of investments.