How Ilie Bolojan explains the need for the project on private pensions. “I, as a prime minister, would be much easier for me to wash my hands, because things will happen in 2030”
Ilie Bolojan, press conference at the Government. Photo: Inquam Photos / George Călin
Prime Minister Ilie Bolojan spoke about the draft law regarding mandatory private pensions (Pillar II) and optional (Pillar III), on Sunday, at Antena 3, and said that the measure will prevent possible “sudden withdrawals that will practically ruin the entire privately managed pensions”. The risk of such situations, says the prime minister, would have appeared “after 2030”, when generations born between 1965-1975 will retire.
Ilie Bolojan said that the project prepared by the Financial Supervisory Authority (ASF) is one of the “conditions” that Romania has in order to join the Organization of Economic Cooperation and Development (OECD). According to the prime minister, “it is a draft law that is sent to Parliament”, and the parliamentarians will make the decision.
He said that “the government does not confiscate any money” from these funds and that he hopes that things will be clarified by the two debates scheduled for “next week”.
“From the money that is paid on the share of social contributions, part of them, small, 4.75%, the pension fund that is administered privately, so this money does not use the Government of Romania. Of this money does not take any leu the Romanian Government and not from the money that will be given when the man will not use the Romanian Government”.
What the law entails
Bolojan claims that ASF has elaborated the proposal “taking the model from all European countries”.
“Exactly as this money is collected month by month, at each salary, and their payment, after you pension, to be made in a manner that, as the name says, to ensure an additional amount to the pension-and then, taking the model from all European countries, and here are some data that cannot be challenged, when you can go, The difference to distribute them for the next 10 years.
The initiative, according to the Liberal, prevents the withdrawals that could have overcome the privately administered pension system.
“This is the calculation that was the basis of this proposal, so that it does not exist, to say, a situation in which in the following years, after 2030, when the number of people entering from year to year, because we enter the generation of those who were born in the '65-`75 We wake up with some sudden withdrawals that will practically ruin the entire privately managed pensions, ”explained Ilie Bolojan.
He reiterated that this is a draft law, “it is not an emergency ordinance, something is not established.”
“I, as a prime minister, would be much easier for me to wash my hands, do nothing, because things will happen in 2030, but I always thought that, when in your mandate there is a problem, you have to do the right thing, not what it does not sound good,” said Ilie Bolojan.
