The Senate opens the box of private pensions. The rules for pillar II and III are changing again, again
The government allows the withdrawal of 30% of the savings in Pillar II and III, the rest to be paid for eight years. Oncological patients can grade the amount in full. The measure offers flexibility, but it risks affecting confidence in the private pension system and market stability, I think experts.
Private pensions – pension. Photo: 123 rf
The Senate voted the law that fundamentally changes how Romanians can withdraw their savings from private pension funds. The project stipulates that the beneficiaries can receive a maximum of 30% of the amount in a single installment, and the rest in monthly payments for eight years. A major exception targets oncological patients, who will be able to withdraw the money. Economists and market supervisors warn that changes can weaken taxpayers' confidence in Pillar II and can put pressure on the financial system.
The senators recently approved the draft law on staggered payment of private pensions, after an intense debate. The initiative of the government introduces a clear limit: Romanians will be able to withdraw at most 30% of the amounts accumulated in Pillar II, Pillar III or Pillar IV, the rest being paid in monthly installments for eight years. Each installment cannot be less than 1,251 lei, the present value of the minimum pension.
During the debates in the Budget Commission, the senators introduced an amendment that allows the oncological patients to withdraw the entire amount, in a single installment. Other proposals, whereby people with serious chronic conditions would have benefited from the same right, were rejected.
“The oncological patient is clearly defined by the primary legislation, has a low life expectancy and an immediate need for treatment.”explained Senator Maria Horga (PNL), the chairman of the commission for work. However, the opposition criticized the decision. Senator Petrișor Peiu (Aur) stated that “Discrimination is created between the patients”and Violeta Alexandru (USR) pointed out that “A pension system should not be confused with a health”.
ASF warning
Vice -President of the Financial Supervisory Authority (ASF), Dan Armeanu, warned that the widening of exceptions can destabilize the system:
“The recommendation of the OECD is very clear – exceptions only for extreme circumstances. If the list of diseases extends, we risk that the exception will become a rule and open a box of pandora”he said, according to Agerpres.
According to the latest ASF report, the compulsory private pension funds (Pillar II) had, at the end of August 2025, assets of 179.6 billion lei, up 21% compared to the previous year. The investments were made in a proportion of 94% in Romanian assets, most in state securities and shares listed at BVB, which means that massive withdrawals would directly affect the financing of the state.
What do economists say
Economist Adrian Negrescu told RFI Romania that the law “comes late, but creates new problems.”
“We are not talking about a bank deposit, but of a pension fund. It is normal for payments to be staggered. However, the exception for oncological patients creates discrimination between gravic patients. They should be equal rules for all.”
Negrescu emphasizes that Romanians should not put high hopes in the amounts accumulated in Pillar II:
“In most cases, this pension will not exceed 6,000-7,000 euros at the time of withdrawal. Even if they could take all the money at once, this money will not provide them with a quiet old age.”
He also draws attention to the dependence of the state on these funds, which are among the largest buyers of government securities:
“The government needs money to cover its expenses, and private pension funds indirectly finances the state. If the system collapsed, the budget would have big financing problems.”
In his opinion, the Chamber of Deputies should correct the discrimination between the categories of patients and establish unitary rules:
“If an oncological patient can withdraw all the money, why not a cardiac or a kidney patient? This can become a problem of constitutionality.”
ASF confirms 20% increase in funds on August
According to the ASF statement, at the end of August 2025, the assets of compulsory private pension funds reached 179.6 billion lei, the government securities represent 65.8% of the portfolio (118.2 billion lei), the shares are at 24.7% (44.4 billion lei), the corporate obligations are at 4.1% (7.3 billion Millions of Romanians.
ASF emphasizes, in a statement issued in October, that private pension funds administer assets of 179.6 billion lei at the end of August, up 21% compared to the previous year. According to the institution, 94% of the investments are made in Romanian assets, most of which are state securities or actions listed on the Bucharest Stock Exchange (BVB).
“Much of the Romanian instruments are represented by government securities or actions listed at BVB, which shows the direct contribution of funds to the financing of the economy”, States ASF, quoted by Forbes Romania.
At the end of August, the government securities held 65.8% of the portfolio (118.2 billion lei), the shares 24.7% (44.4 billion lei), and the corporate bonds 4.1% (7.3 billion lei). The total number of participants was 8.4 million, and the average monthly contribution was 415 lei.
What follows
The project will reach the Chamber of Deputies, which is a decision -making. Deputies can change the withdrawal percentage, payment period or eligible categories criteria.
Economists warn that any additional relaxation could undermine the stability of the private pension system and would indirectly affect the state's ability to finance through government securities.
Currently, the mandatory private pension system (Pillar II) has over 8.4 million participants and manages almost 10% of the GDP of Romania, according to ASF and Forbes Romania data.
