Another 33,000 employees distributed randomly in pension lottery
Managers of mandatory private pension funds were in for a
surprise in February: the number of clients they were allocated as
part of the random distribution system (lottery) climbed by 70%
against January, i.e. 32,820 new clients, despite a continued rise
in unemployment. They are employees aged under 35 who did not
choose a pension fund within four months from starting their first
job.
The number of clients who chose their own fund was only 2,500, 35%
less than in the first month of this year. People who joined a
private pensions fund on their own accounted for only 7% of the
overall number of new pension fund clients, while the others
resulted from the lottery.
"Maybe some hiring was done in the economy, but it is not very
likely. We really don't know where all these participants come
from," says Mihai Coca-Cozma, general manager of Alico Pensii
pension manager (formerly AIG Pensii).
Very few employees know that they must choose a private pension
fund within four months from being employed in their first job. 2%
of an employee's gross salary goes into this fund, a contribution
which is to be boosted to 2.5% this month.
"Finding eligible clients is very hard to do. (...) Since the
contribution is so small, people are not very interested in private
pension funds. That is why managers don't invest very much in
promotion and in informing people," explains Coca-Cozma.