New rules for private pensions. A new fee is introduced for those who save. The full withdrawal of money will be removed
The government is to approve on Friday, in a government meeting, a draft law that fundamentally amends the Pillar II private pension system. According to the document, a new tax, a commission of operating commission will be introduced, which will be paid by depositors to a special payment fund.
New rules set by the government on private pensions / photo source: Shutterstock
After 17 years since the establishment of the Pillar II pension system, the Government is preparing a major change: the taxpayers will no longer be able to withdraw the entire accumulated amount. Instead, only two options will have at their disposal – scheduled withdrawals or life annuities. In addition, a new mandatory commission will be introduced.
Currently participants in private and optional pensions can opt either for the full withdrawal of the accumulated amountsituation in which it owes the profit tax and the contribution of social health insurance (CASS) for the entire amount exceeding 3,000 lei, either for scheduled withdrawalsin equal installments, for a maximum of five years (60 months).
Disappears the possibility of withdrawing money from a fire
The new legislative proposal eliminates the possibility of full withdrawal. Instead, participants will be able to choose between two options: scheduled withdrawal or life annuity. In the case of the first variant, the person will receive monthly a fixed amountfor a fixed period. If the holder dies before the funds are exhausted, The remaining amount will return to the heirs.
In addition, participants will be able to withdraw, in one installment, at most 25% of the accumulated amount, but will no longer have access to the entire amount at once.
In the case of life annuity, the pension will be paid throughout the beneficiary's life, regardless of its duration. The monthly value of the pension will be calculated based on statistical factors such as life expectancy, mortality rate and other demographic indicators. For this reason, the monthly amount received will most likely be lower than in the case of a scheduled withdrawal.
New fee for those who put money aside for private pension
In the reasons for the reasons of the draft law, consulted by the truth, in the chapter “expected changes” is mentioned explicitly:
“The expenses in charge of the payment fund are the monthly administration commission from the fund assets and the expenses regarding the financial audit activity of the payment fund.”
Thus, instead of fully benefiting from the accumulated amounts, the future pensioners will pay in addition to the operation of the payment mechanism, a new masked fee in the commission.
Payment Fund will charge monthly administration / source commission: Capture Document
It is indicated that the payment fund will cover these expenses from its assets, that is, from the money accumulated by the participants.
How much money is at the private pension funds in Romania
According to economy.ro, the compulsory private pension funds 2 had assets worth 166.2 billion lei, at the end of May 2025, up 19% compared to the level registered at the same date of 2024, according to the statistics of the Financial Supervisory Authority (ASF). Pillar 3 optional pension funds had assets worth 6.1 billion lei, at the end of May 2025, increasing by 21% compared to the level registered at the same date of the previous year.
