New bill: how employers could retain their employees through the Second Pension Pillar

Companies could optionally pay a maximum of 150 euros per month, a deductible amount, for each employee to the Second Pension Pillar, as an additional amount, according to a bill initiated by the Liberal MP Raluca Turcan, former Minister of Labor.

Ms. Turcan stated yesterday, during a press conference, that the draft normative act aims to consolidate the Second Pension Pillar and create direct benefits for employees, employers and the entire economy.

"We have submitted a bill by which, in addition to the mandatory 4.75% contribution that employers have to contribute to the Second Pillar of pensions, they can optionally transfer, in addition, up to 150 deductible euros per month, to the pension account in the Second Pillar. This amount will be, as I said, tax deductible", declared Raluca Turcan.

According to her explanations, the measure has multiple benefits: "More money collected for employees' pensions. A higher pension, which will ensure a dignified life. For employers, a new way to motivate and retain their people, in a labor market where competition is increasingly strong. And for the economy - a breath of fresh air: this money is not spent on consumption, but is invested in Romanian companies, in government bonds, in long-term development".

Raluca Turcan emphasized that this is a law through which "everyone benefits: the employee, the employer, the national economy and the Romanian state. A law through which we transform Pillar II into a true partner for the future, so that Romanians' pensions are more secure and closer to European standards".

She also recalled that the level of individual contributions should have reached 6% of the employee's gross income over four years ago, but "the growth schedule from 2.5% to 6% has suffered constant blockages and even regression, when the 5.1% quota was reduced to 3.75% through a completely arbitrary decision".

In her opinion, the measure will bring more security and predictability to the future of Romanians. "Romanians deserve a solid pension system, which will offer them security and respect after a lifetime of work. Pillar II was designed precisely for this - so that tomorrow's pension is a real income, close to the level in developed European countries".

The former Minister of Labor also made a comparison with Pillar III: "Unlike Pillar III, where contributions are rare and fragmented, Pillar II ensures continuity and stability. We are talking about a predictable, reliable mechanism that helps people build their future",

Raluca Turcan also showed that in the long term "this measure not only strengthens the personal accounts of Romanians, but also brings a positive impact on the budget and a multiplier effect in the entire economy".