The companies that manage private pension funds must have at the moment of submitting their authorization request a minimum share capital equivalent in lei to the amount of 1.5 million euros, calculated at the reference rate of the National Bank of Romania (BNR), stipulates a draft norm of the Private Pensions System Supervision (CSSPP), according to Rompres and ING Financial News. The sums destined for participation in the share capital of the pension company should come solely from their own sources and must not represent drawn credits or borrowed money, under irrespective what titles, from other individuals, authorized individuals, corporate entities or entities without legal personality.

The private pensions funds and their managers are not allowed in their publicity materials to make either estimations or prognosis as for future performances, or comparisons between different optional pensions funds or managers, CSSPP says in its draft norm published on the institution's site.

As well, the private pensions funds and the pensions companies that manage them are forbidden to use expressions such as "guaranteed results," "guaranteed gains" or any other wordings that can create the illusion that a gain has been granted, formulas of the kind "the biggest pensions funds managing company", "the best optional pensions scheme", "the best performing fund" and/ or other similar publicity, as well as the use of previous, present or potential participants' statements.

Almost three million Romanians, now insured in the public pensions system, are to contribute, starting next year, to the privately managed pensions funds, according to estimations made by CSSPP managing director Mircea Oancea.

The first funds in the privately managed pensions system are expected to be collected in July 2007 and it is estimated that 1.5 million people, up to 35 years old, will participate in this pillar II system (privately managed pensions) in the first year since being set up.

It is mandatory for them to adhere to a private fund, in addition to an approximately equal number of people, aged between 35 and 45, who will also opt to participate in a private fund, as well.

Likewise, some 500,000 participants are expected to adhere to pillar III (occupational / optional pensions) in its first year of activity.

The Government in June approved modifications to the law on privately managed pensions funds.

According to the new rules, people aged up to 35 years, insured in the public pensions system in line with Law No 19/2000, are compelled to join a privately managed pensions fund.
 
For people aged up to 45 years, who are already insured and contribute to the public system of pensions, the contribution to a privately managed pension fund remains optional.

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