UDMR challenges the limitation of withdrawals from the Second Pillar of pensions: Everyone decides how to use their money

UDMR firmly rejects the new draft law regarding the payment of private pensions from Pillar II, discussed in the first reading by the Government.

The leader of the party, Kelemen Hunor, accuses the lack of consultations within the coalition and warns that any measure restricting citizens’ access to their money is unacceptable. „The state cannot tell a person how to use their money!” he conveyed in a Facebook post.

According to Kelemen, private pension represents the personal savings of each taxpayer, and the right to decide on these funds belongs exclusively to them: "Neither the Government nor state institutions can establish rules in this regard."

He specified that UDMR opposes any initiative that would limit the freedom of those contributing to private pension funds.

Tanczos Barna: Payment of private pensions should not be staggered for more than two years

Vice Prime Minister Tanczos Barna also expressed reservations about the Government's proposal to extend the payment of pensions from Pillar II over 10 years.

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"Personally, I believe that stretching out the payment of pensions from Pillar 2 over a long period of time is not justified. (...) I wouldn't extend it for more than a year, maximum two, with the payment of these amounts, if that's what the investor wants," he stated on Friday in Oradea.

The Vice Prime Minister emphasized that it concerns the money of each taxpayer, and the project will be debated in Parliament, where it may undergo modifications.

New rules regarding Pillar II

The project discussed by the Government on Friday comes 17 years after the establishment of Pillar II and introduces new rules for the payment of private pensions. Among them, limiting the amount that can be withdrawn at once to 25%, with the rest to be staggered over a period of up to 10 years, instead of 5 years as it is currently.

The President of ASF, Alexandru Petrescu, explained that the measure is necessary given that in 2030 a "peak load" will be reached, with hundreds of thousands of people meeting the retirement conditions.

"This year, approximately 80,000 people retired, and in the next 5-7 years, we will have hundreds of thousands," he said.