On December 17, the Senate adopted a bill that modifies the regime for withdrawing private pensions, eliminating the exception for cancer patients. According to the new regulation, beneficiaries can initially withdraw only 30% of the funds, while the remaining 70% will be paid in installments over a period of eight years. Private pension expert George Moț explained that, although the withdrawal limitation is not unusual, in other European countries there are tax deductions for the amounts withdrawn, which does not apply in Romania.
A major problem is that the state imposes conditions for the installment payments, linking private pensions to social benefits. Additionally, discussions for including other categories of patients have been complicated, and lawmakers chose to eliminate all exceptions. Moț emphasizes that the new law affects the rights of participants, who will no longer be able to decide on the value of the pension and the payment period.
The lack of annual indexing of pensions and the restrictions on investments of the remaining funds are other reported disadvantages. The law is set to be debated by the Chamber of Deputies, and its future remains uncertain.
A major problem is that the state imposes conditions for the installment payments, linking private pensions to social benefits. Additionally, discussions for including other categories of patients have been complicated, and lawmakers chose to eliminate all exceptions. Moț emphasizes that the new law affects the rights of participants, who will no longer be able to decide on the value of the pension and the payment period.
The lack of annual indexing of pensions and the restrictions on investments of the remaining funds are other reported disadvantages. The law is set to be debated by the Chamber of Deputies, and its future remains uncertain.
Sources
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