Privately-managed pension funds will become an investment force to be reckoned with in Romania in the next years, Finance and Economy Minister Varujan Vosganian told a television channel on May 19.
He added that the market entry of the private pension system does not mean the social security contributions of Romanians will increase, and that such contributions will overall go down by 10%, from 49.5% in 2004 to 39.5%.
Vosganian also said that the social security budget discharge in the first four months on 2008 indicates an overall surplus of 105 million euros, or 0.1% of the Gross Domestic Product (GDP). He added that the 2009 projection is also sustainable as a rise in the reference pension point to 45% of the average gross pay, as the law requires, has been taken into account and the system will manage to cover the rise.
According to data with Vosganian, the percentage of Romanians living on the minimum industrial wage has dropped from 12% in 2004, to only 2% now.