Preliminary assessment of the second payment request of Romania

ensure sustainability and adequacy of public pensions. The reform involves the adoption of a new law on the public pension system, with the input of technical assistance, which is going to replace the Law No. 127/2019. Milestone #213 requires the entry into force of the amendments to the regulatory framework to ensure the sustainability of Pillar 2 pensions. Milestone #213 is the third milestone of the reform, and it follows the completion of milestone #211 related to contracting technical assistance to prepare analysis and proposals for a reform of the pensions system and milestone #212 related to setting up a monitoring committee in charge of reviewing the policy interventions in the pension system. Milestone #213 will be followed by milestone #214 related to the entry into force of the new law on the pension system replacing the provisions of Law No. 127/2019 and milestone #215 on the entry into force of the legislative framework for reducing expenditure on special pensions.

The reform has a final expected date for implementation on 30 March 2023.
Evidence provided:
In line with the verification mechanism set out in the Operational Arrangements, the following
evidence was provided:
   i)   Cover note justifying how the milestone (including all the constitutive elements) was
        satisfactorily fulfilled;
  ii)   Copy of Law No. 104/2023 of 13 April 2023, approving Government Emergency Order No.
        174/2022 amending certain legislative acts in the field of private pensions, published in the
        Official Journal No. 319 on 13 April 2023;
 iii)   Copy of Law No. 238/2022 of 21 July 2022, approving Government Emergency Ordinance
        No. 23/2022 supplementing Article 43 of Law No. 411/2004 on privately managed pension
        funds, published on the Official Journal No. 735 on 21 July 2022

 iv)    Copy of Government Emergency Ordinance No. 23/2022 of 16 March 2022, supplementing
        Article 43 of Law No. 411/2004 on privately managed pension funds, published in the
        Official Journal No. 259 on 16 March 2022;
  v)    Copy of Law No. 411/2004 of 18 October 2004, on privately managed pension funds, as
        republished in the Official Journal No. 482 on 18 July 2007;
 vi)    Explanatory note developed by the Financial Supervisory Authority titled “Analysis of how
        Romania carried out commitments related to milestone 213 of the NRRPs relating to
        making investment by private pension funds more flexible” (hereinafter referred to as “the
        final explanatory note from the Financial Supervisory Authority”);
 vii)   Explanatory note developed by the Financial Supervisory Authority titled “Reply of the
        Financial Supervisory Authority to the request made by the representatives of the European
        Commission at the meeting on 8.11.2022 to negotiate with the Commission on milestone

        213 NRRP” (hereinafter referred to as “the explanatory note developed by the Financial
        Supervisory Authority”) and its annex;
viii)   Explanatory annex titled “Milestone 213 – Entry into force of amendments to the regulatory
        framework to ensure the sustainability of Pillar 2 pensions”;
 ix)    Copy of Financial Supervisory Authority rule No. 4/2023 of 3 February 2023, amending and
        supplementing Rule No. 11/2011 on the investment and valuation of assets private pension
        funds, approved by Judgment Private Pension System Supervisory Commission No. 22/2011,
        published in the Official Journal No. 142 on 20 February 2023.
  x)    Copy of Financial Supervisory Authority rule No. 2/2021 of 29 January 2021, amending and

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