Voluntary pension funds might be created in Moldova

Chisinau, 9 July /MOLDPRES/ - Voluntary pension funds might be created in Moldova. A draft law to this effect was approved by most lawmakers in the first reading today.  

The draft was worked out by the National Commission of Financial Market (CNPF) and establishes the legal framework on the setting up and work of the voluntary pension funds based on individually capitalized savings, requirements for the organization, licencing and activities carried out by managers, norms on the depositaries of voluntary pension funds, as well as the competences of supervision of these entities by CNPF.  

The new law will replace the law on non-state pension funds, adopted in 1999 and which is not functional.

The voluntary system of pension funds will be created based on the voluntary contributions by employees or employers. Each participant will decide the pension fund to which he/she is to contribute, as well as the size of the contribution, by signing, in this respect, an individual act on joining the fund. If an occupational fund is created, the employer proposes to his/her employees a plan of voluntary pensions, paying contributions. The contribution can be divided between the employee and the employer. Thus, for the employers, the voluntary pension can represent an efficient instrument of motivating employees and of human resources’ management, the draft’s authors said.   

The management of the assets of voluntary pension funds could be made by a pension society or by a regulated entity of the financial sector (bank, society of fiduciary administration of investments, insurer or reinsurer) or by the branches of the authorized legal entities for activities of management of pension funds from other states, created in Moldova and licenced.    

To become law, the draft must be considered in final reading.