2nd Pillar: earnings in excess of RON 1 billion within four years. 3rd pillar: net assets worth half a million RON within five years

21 May 2012 — Vlad BOLDIJAR
cornelia_coman_fiar2012Romania's mandatory private pension market generated RON 1.05 billion in net earnings for the participants within four years of activity, according to the data presented by APAPR at FIAR 2012.

The net assets managed by the nine mandatory pension funds have reached RON 7.5 billion and the gross contributions that CNPP transferred to the pension funds amounted to RON 6.45 billion. The average return from start to date was 12%.

"The number of participants has reached 5.63 million after four years of existence. From launch to date, CNPP also transferred net contributions totaling RON 6.45 billion to the 2nd Pillar funds", stated Cornelia COMAN, President of APAPR.

As for the 3rd Pillar, the net assets managed by the 11 voluntary pension funds five years from its launch have reached RON 495 million, according to the APAPR survey. The number of participants reached 271,000 and the average return of all voluntary private pension funds was 7.8%.

"Both systems - the 2nd Pillar and the 3rd Pillar alike - face a low density of contributions, are insufficiently known to the public and enjoy too little support from authorities. Some of the benefits they provide are the accumulation and development of financial markets, prudent and profitable investments without operating gaps", continued the President of APAPR.

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