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The Moldovan Parliament approved on first reading the draft law on optional pension funds.

The Moldovan Parliament approved on first reading the draft law on optional pension funds.

The document establishes the legal basis for the creation and operation of optional pension funds as part of the system of providing optional pensions based on individual capitalized savings. The law contains requirements for licensing private pension funds, rules for the issuance of optional pensions, stipulates the powers of the National Commission for Financial Markets as a body to oversee such funds. In general, the bill is designed to provide additional income for persons of retirement age. It is envisaged that any citizen will be able to join a private pension fund (while participation in the state social insurance system is mandatory), and the amount of contributions paid to the additional pension fund will be deducted from the taxable income of citizens. All participants in optional pension funds have the right to choose a pension fund by paying contributions based on an individual pension contribution. The right to an additional pension can be exercised if the fund participant has reached the age of 60, has paid at least 60 monthly contributions, and his/her personal asset is equivalent to the amount required to receive the minimum additional pension (the minimum must be determined by a separate regulatory act). The document spells out the procedure for creating and liquidating a pension fund, defines the possibility of merging several funds, stipulates requirements for the authorized capital, investment, audit and reporting. Optional pension funds can operate only on the basis of a license issued by the NCFM, its cost will amount to 20 thousand lei. The minimum authorized capital is 25 thousand euros, but its phased increase is envisaged. So, after 3 years from the moment of enactment of the law, the size of the authorized capital should be at least 44 thousand euros, after 5 years - 63 thousand euros, after 7 years - 94 thousand euros. A certain percentage of the fund’s accumulations can be invested (the percentage depends on the area of investment), while restrictions are set for some areas, such as investments in art, cars, etc. The bill also spells out the requirements for the pension fund’s prudentiality and the norms of supervision and intervention of the NCFM for protecting the interests of participants in pension funds. The project also provides for the establishment of a Fund for guaranteeing contributions to the optional pension system, the amount of contributions to this fund will be established by a separate law, and the fund's resources can be used to compensate for losses of optional pension funds. It is planned that the Law on Optional Pension Funds, after its adoption by the Parliament in the final reading, will enter into force six months after publication. The new law will replace the current Law on non-state pension funds. //09.07.2020 — InfoMarket.

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