ASF proposes new regulations for private pension payments in Romania

The Financial Supervisory Authority (ASF) has released a new regulation for public consultation regarding the authorization of private pension payment funds, which is expected to be implemented starting in 2027. The proposal establishes strict conditions for payment contracts, the roles of custodians and auditors, and limitations on commissions to protect the approximately 8.5 million participants in Pillar II.

Under the proposed rules, payment contracts must include precise details, such as the transferred asset value calculated to six decimal places, the calculation date, the number of fund units, and the conversion value. The regulations mandate that the pension payment sum must be at least equal to the asset value, diminished only by legal commissions. A major provision prohibits providers from increasing commissions for contracts already in the payment phase.

For programmed withdrawal pensions, participants may request a single advance of up to 30% of the asset value. Contracts must specify the duration of payments, with a minimum of eight years for programmed withdrawals. For life pensions, contracts must detail the pension type, initial amount, calculation elements, indexation conditions, and beneficiary information. Asset transfers to chosen payment funds must be completed within five working days without penalties, taxes, or transfer commissions, with bank fees covered by the administrator.