Romanians will be able to take their money out of private pension funds for a reduced withdrawal fee, a draft bill by the Ministry of Finance has said.

Published yesterday, 18 December, savers who have contributed for five years are eligible for the initiative as the country grapples with the framework of its pension system, a Reuters report said.

Savers will be able to take their money out at a fee of 2 per cent of their assets, in a blow to the country’s second pillar of private pension schemes.

In 2008, Romania reformed its communist-era pensions system, making it compulsory for working under 35-year-olds to contribute to a second pillar private pension.

The Reuters’ report said the Social Democrats have considered dismantling the second pillar altogether.

Finance Minister, Eugen Teodorovici, said: “The Pilar II pension funds management fee will be reduced from 2.5 per cent to 1 per cent.”

Contributions to Pillar II schemes were cut to 3.75 per cent in 2017, down from 5.1 per cent.

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