The domestic pension system consists of the Pillars I, II and III, of which the "First Pillar" represents the public pension system, with a social security contribution (CAS) of 10.5% of the gross wage of each taxpayer; "Pillar II" is the private pension system with a mandatory payment of 2.5% of the CAS for people up to 35 years of age, optional for those aged 35 to 45; "Pillar 3" represents the private pension system of optional contributions.

The private pension system is regulated through the law no. 411/2004.

The economic crisis had a negative impact on pension funds, as it caused an increase in the number of customers who were unable to honor their obligations, and has delayed the "schedule" for raising the minimum required contribution, said Radu Crăciun, investment director with pension fund "Eureko Pensii". He explained: "The contributions were supposed to be raised by 0.5% each year, but in 2010 they weren"t increased and as a result we have been setback a year".

Radu Crăciun said that the spending cuts operated by private companies had a negative effect on pension funds, particularly on the "3rd Pillar", which has become increasingly more expensive, particularly for the corporate segment.

Crinu Andănuţ, the chairman of the Romanian Association of Private Pension Funds (APAPR), considers that the crisis caused the payments made by taxpayers to private pension funds to fall 20%-25%, compared to the period prior to the crisis. According to him, there have been difficulties in the payment of contributions to the Second Pillar in March, pertaining to the month of January, as they were 10% lower than they were supposed to be, due to the effects of the introduction the unified tax statement no. 112.

He said: "The tax statement no. 112 has caused problems in filling out and processing Social Security Contributions statements,