Granting a new type of discretionary retirement benefits10 January 2020
The enactment containing the legal framework for the establishment of occupational pension schemes and funds (hereinafter referred to as “Law on occupational pensions”) has been recently published within the Official Gazette. These provisions will enter into force within 30 days as of publication. The said enactment transposes the dispositions of a European directive and provides the participants’ possibility of obtaining a supplementary type of pension, different from optional or privately managed pensions.
The occupational pension will be optional and, the right to propose such a scheme will belong to employers granting such benefits to all their employees as per the applicable collective bargaining agreement or individual employment agreements. Contributions due by the employer and employee will be established through the same scheme and adherence act, the employer having the obligation to pay these on the basis of the employee’s written agreement to the corresponding account at the same time with the mandatory social insurance contributions. To this aim, the employers will have the possibility to establish these contributions by reference to the remuneration, position or length-in-service, without exceeding a maximum amount for such deductions as per the relevant law.
The categories of participants provided by the Law on occupational pensions do not refer only to employees, but also, inter alia, to persons for which contributions are paid to a fund as provided within a mandate or management agreement or persons exercising independent activities, including those insured within social security systems that are not integrated in the public pension system (e.g., lawyers). As regards persons exercising independent activities, these will benefit from such pensions under the conditions provided within the management agreement concluded with the institutions for occupational retirement provision and within the individual adherence act.
In addition, the Law on occupational pensions also contains detailed provisions on the authorization and functioning of institutions for occupational retirement provision and occupational pension funds, the exploitation and transfer of participant rights, different reporting and transparency obligations, as well as rules for the supervision of involved entities and applicable sanctions in case of breaches of legal provisions.
 Law No. 1/2020 on occupational pensions, published within the Official Gazette, Part I No. 10 dated January 8th, 2020;
 Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs), published within the Official Journal L 354 dated December 23rd, 2016;
 One-third of the monthly gross salary income or assimilated, without exceeding together with other deductions half of the monthly net salaries, respectively assimilated income, as results from the provisions of Art. 85 par. (3) of the Law on occupational pensions.
The article can be downloaded in PDF format right from this link.