Financial milestone: Moldova launches voluntary pension scheme after regulatory overhaul
The National Commission for Financial Market (NCFM) has officially greenlighted the establishment of the Republic of Moldova’s first voluntary pension fund. This landmark decision marks the functional launch of a private retirement mechanism following several previous regulatory attempts.
The introduction of voluntary funds provides a critical alternative to the state-run system, which currently operates on a redistributive, pay-as-you-go generational solidarity model. This new pillar opens a strategic chapter for long-term national savings and private investment.
Flexible contributions and accessibility
To join the fund, individuals must sign a contract with the administrator and make an initial contribution. According to the NCFM-approved prospectus, the minimum monthly contribution is set at 300 MDL (approx. €15), though participants may opt for higher amounts based on their financial capacity.
Elena Pui, director of the fund's management company, explained that contributions are funneled into a dedicated collection account at a partner bank. These funds are then converted into fund units and capitalized through diversified investments to ensure long-term growth for participants.
Security and multi-layered oversight
Addressing concerns over asset safety, NCFM Deputy Director Vladimir Rusnac highlighted the system’s "lines of defense." The framework includes rigorous licensing, strict investment limits, and high minimum capital requirements for administrators.
A crucial role is played by the asset custodian—a separate entity from the administrator. The custodian monitors all fund activities in real-time and is legally obligated to report any irregularities directly to the supervisory authorities.
Overcoming cultural and economic barriers
Public sentiment remains cautious, with many citizens citing low income or a lack of information as primary obstacles. Some respondents noted a persistent local preference for informal "under-the-mattress" saving habits rather than institutional investments.
In response, Moldovan authorities have reaffirmed their support for the sector through ongoing financial literacy programs. They emphasize that voluntary pensions are designed to complement, not replace, mandatory social security contributions, providing an essential financial cushion for retirement.
Translation by Iurie Tataru
