Starting in 2008, 2% of every worker's general income will be redirected from the state budget to the chosen private fund. This contribution will gradually increase to 6% by 2015, and the current 9.5% social security contribution to the state system will diminish accordingly.
"Several million Romanians will become investors, and the private pension system will educate them in the spirit of a free market economy," says Romanian President Traian Basescu.
"The launch of the private pension system marks the end of the process of transition from a socialist economy to a capitalist one, creating the premises for a long-term economic stability," says Finance Minister Varujan Vosganian. "The privatisation of the public pension system will thus ensure the transition from populism to guaranteeing the freedom and dignity of retired people."