The Council of the Oversight Committee for the System of Private Pensions (CSSPP) today ratified its decision to authorise SC Aviva Administration Company of a Private Pension Fund SA as an administrator of private pensions.
The Council of the Oversight Committee for the System of Private Pensions (CSSPP) today ratified its decision to authorise SC Aviva Administration Company of a Private Pension Fund SA as an administrator of private pensions. At the same session, the CSSPP also ratified its decision to authorise the prospectus for the Pensia Viva private pensions scheme, as well as the application form.
Aviva is thus once again in the front line as far as authorisations are concerned and in the running for pillar II.
"We are delighted with the authorisation by the CSSPP of the Aviva company as an administrator of private pension funds. We have already recruited 20,000 marketing agents, have invested in their training and at the same time have secured the very latest technology for our pensions company. Therefore, from 17 September, those who choose Aviva will receive financial advice from the best professionals in the market, benefiting at the same time from the expertise of one of the most powerful financial groups in the world, with over 300 years' experience in pensions and insurance and the administration of €535 billion worth of assets," stated Shah Rouf, CEO of the Aviva Romania.
In accordance with law 411/2004 regarding privately administered pension funds, authorisation of the first prospectus for a mandatory private pensions scheme is conferred at the same time as authorisation of the Administrator. An administrator can administer a single private pensions fund.
The pension fund is authorised by the committee, only after authorisation of the administrator and the prospectus for the private pensions scheme.
Starting on 17 September, those aged 35 and over, who pay into the public pensions system will have to choose a privately administered pension fund. They will have four months in which to make their selection, after which, those employees who have not chosen a pension fund in which to pay their contributions will be allocated to one on a random basis by the Oversight Committee for the System of Private Pensions. Participation in a privately administered pension fund is compulsory for those under 35 years of age and voluntary for those wage earners who are aged between 36 and 45.
This type of pension will allow 2% of gross salary (a part of the national insurance contribution) to be re-directed into a private pension fund. Over the next 8 years, this percentage will increase by 0.5% percentage points per year, reaching 6% in 2016.
The important thing to stress is the fact that the participant makes no additional payment, in order to have in the future a larger pension than he or she would have received from the state. All that he or she has to do is to select a private pension fund.
"Potential participants in the private pensions system will receive a wide range of offers. What will make the difference is the way in which companies are able best to respond to the needs of customers, offering them three important things: security, value and growth. Our company will provide a portfolio that best responds to all these needs," said Adrian Allott, CEO of SC Aviva Administration Company for a Private Pension Fund SA.
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For further information:
Giliola Ignat
Telephone: 203 83 73
E-mail: giliola.ignat@aviva.ro
Note for editors:
Aviva Life Insurance SA and Aviva Administration Company for a Private Pension SA are part of the Aviva Group, the largest insurance provider in Great Britain and one of the most powerful financial groups in the world. The Aviva group is the market leader for pensions and life insurance in Europe, occupying leading positions on most of the markets in which it operates. The group administers 535 billion euros' worth of assets, representing the money of over 40 million clients worldwide. In Romania, Aviva has over 430,000 clients and agents and development centres in 23 towns and cities.